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1、QUESTION1What are the problems facing by industrialists in Hong Kong lately? .Problems facing by industrialists in Hong Kong.Problems facing by industrialists in Hong KongPROBLEM 1: Most of Hong Kongs labour incentive factories (e.g. textile factories) move to China Reasons: 1. Cheap land rent 2. Ch

2、eap labour 3. Larger space for expansion 4. More new market 5. Bigger market large population in China.Problems facing by industrialists in Hong KongReasons:6. The economy in China grows rapidly and opens its market More people able to spend more money Maximize their profit (earn more) 7. Government

3、 support 8. Loose pollution controls in China .Problems facing by industrialists in Hong Kong PROBLEM 2: Increase in unemployment rate in Hong Kong Reason: Factories move from Hong Kong to Mainland (Factory owners employ workers in Mainland instead of moving Hong Kongs labour).Problems facing by ind

4、ustrialists in Hong Kong PROBLEM 3: Vicious Cycle UnemploymentEconomyworsenPeople notable to spendmuch money inlocal marketWorkers cannotafford theirfamilies.What is CEPA?Close Economic Partnership ArrangementA free trade agreement under WTO rulesEffective from January 1, 2004Strengthens trade and i

5、nvestment cooperation between mainland China and Hong KongPromotes joint development of two sides .Advantages of CEPA.Advantages of CEPA 90% of Hong Kong domestic exports to China enjoy ZERO TARIFFS HK expects other countries will import semi-finished products to Hong Kong for the assembly process H

6、K will earn a large sum of money due to the industries investment here Results in an industrial growth in HK.Advantages of CEPASmall scale firm can enjoy greater flexibility to access mainland markets because of the zero tariffs Small scale firms have less capital If tariffs are imposed on their pro

7、ducts to China, they are not affordable to have such high production costs goods Zero tariffs Production cost becomes lower .Advantages of CEPA CEPA can increase the competitiveness of HK goods in China market Zero tariffs are being imposed Production cost of HK domestic goods is lower Quality of HK

8、 goods is better than China goods Raises the competitiveness of HK goods when its price is similar to the Chinese goods.Advantages of CEPAHong Kongs 18 services sectors are faster and easier to access into Chinas market Manufacturers in China will use HK tertiary services like design, finance, etcEv

9、idence: CEPA 對 服 務 業 的 影 響 將 較 製 造 業 為 大。在 中 國 內 地，服 務 業 只 佔 內 部 生 產 總 值 的 34%，無 疑 約 制 了 國 家 的 經 濟 發 展。至 於 在 香 港，服 務 業 相 當 發 達，佔 本 地 經 濟 87%，相 信 在 CEPA下，香 港 服 務 業 對 內 地 的 現 代 化 發 展 將 可 作 出 更 多 貢 獻。 . Advantages of CEPACEPA allows Hong Kong permanent residents to set up individually owned retail stor

10、es in Guangdong Enhance more tertiary industries to HK business men and even unemployed people to set up their own business.Evidence渣打香港申請本地註冊 為享CEPA優惠 1月 16日 星期五 02:20 更新 【明報專訊】渣打集團2888昨天宣布，計劃於本港成立註冊公司，並將香港業務注入，這將使渣打可以享用在CEPA下給予本港銀行內地拓展業務的優惠。渣打銀行董事兼行政總裁王冬勝指出，該行已向英、港兩地有關部門提交成立香港註冊公司的有關文件，期望成立本港註冊公司可

11、於年內落實，而新成立的本港註冊公司將成為集團的全資附屬公司。.Evidence 花旗港零售銀行將變本地註冊4月 2日 星期五 02:15 更新Citibank宣布計劃將香港零售銀行業務注入花旗集團屬下一家全資附屬香港註冊公司。發言人強調，此舉非因想透過更緊密經貿關係安排 (CEPA)發展大陸巿場，而是發展香港巿場。不過，根據CEPA的安排下，香港銀行在內地開設分行的資產總額，由內地規定的200億美圆降至60億美圆。本地一些銀行如永隆銀行、上海商業銀行及大新銀行均能受惠於CEPA條款，並已獲同意在內地開設分行。 渣打銀行計劃在今年稍後透過私人條例草案，將香港分行及其四家本地附屬公司的業務轉撥至渣

12、打香港。.To what extend can CEPA help HK to minimize the existing problem?.Roles Former Financial Secretary, Mr. Anthony Leung China Premier, Mr. Wan Ka Po 溫家寶 An unemployed worker in Hong Kong Boss of a textile company in Hong Kong Michael Fung Boss of a HKs watch company who has relocated his industry

13、 to South China President of Hopewell Limited, Mr. Gordon Wu 胡應湘 Boss of an Information Technology firm in HK A F.5 graduate from.Former Financial Secretary, Mr. Anthony LeungAGREEzero tariffs are imposed on HK domestic product HK industrialists and foreigners may set up industries in HK enhance ind

14、ustrial development in HK more job opportunities are created. .China Premier,溫家寶AGREE HKs products can have greater flexibility to access to mainland market boost logistics service in HK They use HK tertiary services like design, marketing, etc. a close business relationship between HK & China .An u

15、nemployed textile worker in HKDISAGREE textile industry is secondary production and labour incentive workers in China are cheaper than workers in HK zero tariff actually will not directly attract the textile factories to set up in HK .An unemployed textile worker in HKnot well educated only know abo

16、ut the skill for making textile it is difficult for me to find a new job other than textile industry .Boss of textile company in HKAGREEzero tariff the production cost of goods will be lower products quality is better than that in themainland China raises its competitiveness in mainland market earn

17、more big market for my goods in China .Boss of HKs watch company who has relocated his industry to South ChinaAGREEHK labour cost is high production cost is still high set up the factory in China labour cost there is low and I do not need to pay the tax for my products production cost in China will

18、still be lower than HK .President of Hopewell Limited, Mr. Gordon Wu 胡應湘AGREE When semi-finished products are produced in other countries and are imported to HK to do the assembly products can be sold to China in zero tariffs boost the logistic development in HK reduce the production cost.Question2W

19、hy dont other countries directly set up factories in China instead of importing semi-finished product to HK?.Question 2 answer quality of products produced in HK is better than that in China .Boss of an Information Technology firm in HK,AGREE CD ROMs are produced in Japan and Taiwan the production c

20、ost includes the fee of taxes, and thus the cost that sold to mainland will become high zero tariffs are imposed CD ROMs are produced in HK, the cost will be much lower when they are sold to mainland. .Evidence 31萬隻光碟零關稅輸內地1月 7日 星期三 13:05 更新在CEPA下香港第一批以零關稅輸往內地的產品為31萬隻可讀光碟，廠商節省了二萬多元關稅這批光碟總值23.52萬元，節省

21、8.8%關稅。CEPA已於元旦起實施，出口大陸的374種本港商品享有零關稅優惠。 香港總商會總裁翁以登預料，到二月中將陸續有更多貨物以零關稅運返內地，置信外商能够在稍後利用CEPA來港設廠，但他不期望香港能回復七十年代的製造業大本營。.Boss of an Information Technology firm in HK, HK-Zhuhai-Macao Bridge to be built in2007 transportation network will be improved a lot bring about more IT business opportunities and logistic development in both China and HK .A F.5 graduate from S