The Closer Economic Partnership Agreement (CEPA) between China and Hong Kong SAR: From gesture to commitment

On 29 June 2003, Hong Kong Special Administrative Region (SAR) and the Mainland China signed the Closer Economic Partnership Arrangement (CEPA) which opened 18 service sectors including certain telecommunications services to Hong Kong investors. However, the response from Hong Kong׳s telecommunications sector has not been enthusiastic. This paper, with the support and sponsorship by the Communications Association of Hong Kong, provides a panorama review of the CEPA within the context of telecommunications and argues that CEPA has been a political gesture of the Mainland to comfort Hong Kong while the future is becoming optimistic as the Chinese central government has been witnessed to change its policy stance from protectionism towards pro-liberalization. The CEPA Supplement XI which has been implemented since March 2015 would be a milestone in opening China׳s domestic telecommunications market to overseas investors.