Brief Introduction

On October 14, 2020, General Secretary Xi Jinping stressed “speeding up the building of Guangdong-Macao In-depth Cooperation Zone in Hengqin”. And the General Plan for Building a Guangdong-Macao In-depth Cooperation Zone in Hengqin officially released by the Central Committee of Communist Party of China and the State Council on September 5, 2021 clearly defines the area of Guangdong-Macao In-depth Cooperation Zone in Hengqin as the customs control area between the “first-tier” and the “second-tier” in Hengqin Island with a total area of 106 sqm approximately. The area that lies between Hengqin and Macao is regarded as the “first-tier” subzone, while the area that lies between Hengqin and other areas within the customs territory of the People’s Republic of China will be defined as the “second-tier”.

Focusing on the main task of “supporting the appropriate diversified development of Macao’s economy”, the Chinese government empowers the Cooperation Zone with four strategic orientations—the new platform of supporting the appropriate diversified development of Macao’s economy; the new space of facilitating Macanese’s lives and works; the new model of “one country, two systems”, and the new height of building Guangdong-Hong Kong-Macao Greater Bay Area. Three phased goals for the development of the Cooperation Zone are set. One of them is that by the year 2035, the strong vitality and superiority of “one country, two systems” will be fully manifested, the economic strength and competitiveness in science and technology regarding the Cooperation Zone will be boosted enormously, the public service and social security system will operate efficiently, the development system of Hengqin-Macao Integration will be improved, and the aim of supporting the appropriate diversified development of Macao’s economy will be achieved basically. The Cooperation Zone strives to develop new industries that promote the appropriate diversification of Macao’s economy with the focus on growing scientific and technological R&D and high-end manufacturing industries, Macanese branding industries (such as traditional Chinese medicine), the culture, tourism, convention and exhibition industry, commerce and trade, and modern financial sectors. Enterprise income tax is levied at a rate of 15% on enterprises of qualified industries, and the portion of personal income tax burden exceeding 15% is exempted for high-level and scarce talents from home and abroad working in the Zone.

The Cooperation Zone is committed to building a new community for Macao residents to live and work by accelerating the construction of “Macao New Neighborhood”, connecting to Macao’s public services systems, such as education, medical and social services, as well as social security system, promoting the full liberalization of Macao motor vehicles to enter and leave the Cooperation Zone, and promoting the interconnection of infrastructure facilities to effectively expand the quality living space for Macao residents.

The Cooperation Zone is committed to building a new high-level open system integrating with Macao, realizing the free entry of goods at the “first-tier” and the control of goods at the “second-tier”. Except for goods and articles that are not exempted from duties under national laws and administrative regulations, other goods and articles entering the Zone are exempted from duty, and the entry and exit of personnel are highly facilitated. The Zone innovates cross-border financial management and establishes a highly convenient market access system, promoting the safe and orderly flow of international Internet data across borders and realizing the efficient and convenient flow of people, goods, capital, and data between Guangdong and Macao.

The Cooperation Zone is committed to establishing and improving a new system of joint consultation, joint construction, joint management, and common use between Guangdong and Macao and establishes a special organization to manage and develop the Cooperation Zone. The governments of Guangdong and Macao jointly set up the Management Committee of the Cooperation Zone to coordinate and make decisions on major plans, policies and projects as well as important personnel appointments and dismissals related to the Zone and established the organization to implement the development program of the Cooperation Zone. An executive committee is set up under the management committee to perform the functions of international promotion, investment and business attraction, industry introduction, land development, project construction, and public service management and maintain the territorial administration. The Cooperation Zone has been upgraded to be an area under the provincial-level administration of Guangdong, concentrating on the work of Party building, state security, criminal justice, social security, etc.