China to diversify Macau’s economy with Bay Area
Key Chinese leaders plan to establish a new “cooperation” zone in Hengqin, southern China’s Guangdong Province, to foster new industries on the island and reduce Macao’s economic dependence on it. with regard to gambling.
Guangdong-Macao Comprehensive Cooperation Zone Building Plan, which the Communist Party of China (CPC) and State Council released on Sunday, aims to provide a new place to live and work for Macau residents. , and enrich the practice of “one country, two systems,” the state-run Xinhua news agency said.
The plan comes months after the National Development and Reform Commission decided to establish a special fund for projects in the cooperation areas of the Guangdong-Hong Kong-Macao Greater Bay Area, including the Guangdong-Hong Kong-Macao Area. Hengqin’s in-depth cooperation, the construction of which was first proposed by the CPC and the State Council, the Chinese government, in 2019.
Macao will play a leading role in the economic functioning of the cooperation zone, while Guangdong will take on government responsibilities, such as social management, said Mi Jian, a professor at the Zhuhai branch of Peking Normal University.
According to the plan, a special committee made up of officials from Guangdong and Macao will be established to develop and manage the area. The governor of Guangdong and the general manager of Macao will be the two directors of the committee.
The authorities in Guangdong and Macao will jointly determine most of the deputy directors of the committee, who will be responsible for making decisions on major plans, policies, projects, as well as the appointment and dismissal of important personnel, according to the plan. The committee will be led by the leading group for the development of the Grande Baie region.
In addition, an executive body, under the direction of the committee, will be set up to exercise functions such as international promotion, investment attraction, land use planning, construction of projects and management of resources. sustenance, the plan said, noting that the main body official will be appointed by Macau.
The decision to share the leaders of Guangdong and Macao and have them jointly develop an area will help to fully realize the benefits of both sides and mobilize their enthusiasm to participate, Yuan Chiping, professor at the Institute of Development Studies from Guangdong, Hong Kong and Macao from Sun Yat-sen University, Caixin said.
The plan requires the two regions to explore and establish a revenue-sharing mechanism under which all investment income before 2024 should be turned over to the special committee for the development of the cooperation area.
It focuses on the development of certain industries in the cooperation area, including high-end science and technology research and manufacturing, traditional Chinese medicine, culture and tourism, as well as modern finance. Qualified businesses will benefit from a corporate tax rate of 15%, well below the 25% average on the Chinese mainland.
The plan indicates that Hengqin formulates support policies to attract high-level international talent, which will help qualified people enter and exit the cooperation area, provide them with better services, as well as exempt them from paying the part of personal income tax which exceeds 15% of its taxable income.
In recent years, Hengqin, with a population of around 53,000, has implemented several policies to allow Macau businesses to operate there or across the border. According to local market regulators, the island had registered more than 4,300 Macau-funded companies by the end of June, an increase of 20.5% from the end of 2020, with registered capital reaching 135.7 billion yuan. ($ 21 billion).
Hengqin, located in the southern part of Zhuhai and connected to Macau by a bridge, was designated by the State Council as a new area to implement “one country, two systems” in 2009, with an initial investment for local projects of more than 72.6 billion yuan. It became the third new national zone, after the new zone of Tianjin Binhai and the new zone of Shanghai Pudong.
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