Guangdong - Zhuhai Macau Cross-border Industrial Zone

Zhuhai Macau Cross-border Industrial Zone   

Facts and Figures (2007)

Source: Administration Committee of Zhuhai Free Trade Zone

Introduction

Zhuhai Macau Cross-border Industrial Zone (Zhuhai Macau Cross-border IZ) neighbors the Zhuhai Free Trade Zone (Zhuhai FTZ) to the south of Zhuhai. Zhuhai is one of five special economic zones in China, all of which enjoy special economic policies and flexible government measures. The zone was set up as a state-level development zone in 2006 upon the approval from the State Council, and covers an area of 0.3 km² in Zhuhai and 0.1 km² in Macau. The zone implies the same favorable policies as the free trade zones.

Zhuhai Macau Cross-border IZ has convenient transportation systems. The zone is only 10 km from Macau International Airport and Macau Port. It is 30 km from Zhuhai Airport, 45 km from Zhuhai Port and 36 nautical miles from Hong Kong Port. Zhuhai Airport offers seventy-six domestic and international routes weekly. In 2006, Zhuhai Airport started cooperation with Hong Kong Airport and currently acts as a supporting cargo-transportation airport for Hong Kong Airport. Zhuhai Port handled 37.1 million tons of cargo and 0.6 million TEUs in 2007. Guangzhou-Zhuhai Highway and Beijing-Zhuhai Highway intersect in the zone. It takes within two hours' drive from the zone to all the major cities in the Pearl River Delta.

Investment Climate

Due to their close proximity, Zhuhai has strong economic ties with Macau. In the January-November period of 2007, the foreign-trade value between Zhuhai and Macau hit US$630 million, representing an increase of 21% from the same period in the previous year.

Since Macau returned to China in December, 1999, Zhuhai had attracted a total of twelve-hundred Macau-based firms, all of which established businesses in the city. The accumulative foreign investments from Macau had exceeded RMB 160 billion by 2006, making Macau the largest foreign investor in Zhuhai.

In 2003, mainland China and Macau signed the "Mainland and Macau Closer Economic Partnership Arrangement" (CEPA), which is an FTA-like arrangement for closer economic and trade links. Under the CEPA, two-hundred and seventy-two Macau products are implemented with zero tariffs. Later in 2005 and 2006, the two parties signed more supplementary agreements for facilitating trade and investments. After the implementation of CEPA, more investments from Macau and rising foreign trade value with Macau are expected.

Since the establishment of Zhuhai Macau Cross-border IZ, fifty-two firms have been set up in the zone. The foreign investments totaled US$100 million in 2007. In the same period, over US$60 million worth of goods passed through the Zhuhai section of the zone.