CEPA with Macau

Auto financing rulesThe central government signed a Closer Economic Partnership Arrangement (CEPA) with the Macau Special Administration Region in October. The CEPA will institute a gradual decrease and elimination of tariff and nontariff barriers for goods trade, gradual realization of freedom over service trade and facilitation of trade and investment. By January 1, 2006, at the latest, all goods manufactured in Macau will be subject to zero customs in the mainland market. The Ministry of Telecommunications also circulated its implementation measures of CEPA in telecommunications. Macau enterprises are allowed to establish JVs in the mainland to provide value-added telecommunication services. There are no geographical restrictions on the establishment of the JV, but Macau enterprises are not allowed to hold an equity ratio of more than 50 percent.