On March 1st, Agreement 2 on the Revision of the Service Trade Agreement between the Mainland and Hong Kong under the Closer Economic Partnership Arrangement (CEPA) officially came into effect. The Second Agreement has added opening measures in several particularly advantageous service sectors in Hong Kong, further facilitating Hong Kong service providers and professionals to establish enterprises and develop businesses in mainland China. This move has been welcomed by various sectors in Hong Kong, and the industry looks forward to making good use of the central government's various policies that benefit Hong Kong, promoting high-quality economic development in Hong Kong, and further integrating into the overall development of the country. Expanding the scope of opening up and lowering the entry threshold "Agreement II" further opens up the service industry market in mainland China to Hong Kong, allowing Hong Kong enterprises and professionals to enter the mainland market with more favorable treatment. Open measures have been added to several service sectors in Hong Kong that have special advantages, such as finance, construction and related engineering, testing and certification, telecommunications, film, television, tourism, etc., including: lifting or relaxing restrictions on equity ratios and business scope for the establishment of enterprises; Relaxing qualification requirements for Hong Kong professionals providing services; Relaxing restrictions on the export of Hong Kong services to the mainland market. Most of the opening-up measures are applicable to the mainland, while some are being piloted in the nine cities of the Pearl River Delta in the Guangdong Hong Kong Macao Greater Bay Area. The Financial Secretary of the Hong Kong Special Administrative Region Government, Paul Chan, recently pointed out that according to Agreement II, the restrictions on Hong Kong banks engaging in bank card business in mainland branches will be lifted in March, which will help them expand their business in mainland China. The Chairman of the Hong Kong Tourism Industry Council, Tan Guangshun, said that the new measures are expected to drive more foreign tourists to enter Hong Kong and travel to Hong Kong and mainland China. The industry is preparing to promote the relevant arrangements, and it is believed that there is a high demand from ASEAN travelers. The Permanent Secretary for Commerce and Economic Development of the Hong Kong Special Administrative Region Government, Wong Siu chu, stated that the government will assist the industry in making good use of various preferential measures and seek to jointly promote closer economic and trade cooperation with the mainland on the basis of CEPA. As of the end of last year, the cumulative tariff preferences for goods under CEPA have exceeded 10.2 billion yuan. Last year, the total trade volume of goods between mainland China and Hong Kong exceeded HKD 4.8 trillion, more than three times that of before the implementation of CEPA, with an average annual growth rate of 5.6%. The number of sectors in mainland China that have fully or partially opened up to Hong Kong's service industry has increased to 153, accounting for 96% of all 160 service trade sectors. Exploring institutional innovation and strengthening the alignment of rules. The addition of "Hong Kong Capital Hong Kong Law" and "Hong Kong Capital Hong Kong Arbitration" as measures to facilitate Hong Kong investors in Agreement II. In addition, Agreement II eliminates the three-year requirement for Hong Kong service providers to engage in substantive operations in Hong Kong in most service sectors. The Secretary for Justice of the Hong Kong Special Administrative Region Government, Lin Dingguo, stated that according to Agreement II, eligible Hong Kong funded enterprises can choose to use Hong Kong law as the applicable law for contracts and choose Hong Kong as the place of arbitration. He encouraged the business community to fully utilize this new opportunity. Cai Guanshen, member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference and President of the Hong Kong Chinese General Chamber of Commerce, recently pointed out that the Second Agreement covers multiple important institutional innovations, which not only provide convenience for Hong Kong businesses entering the mainland market, but also offer broader legal service choices for investors in the Guangdong Hong Kong Macao Greater Bay Area, encouraging more foreign investors to invest in the Greater Bay Area through Hong Kong as a springboard, further consolidating Hong Kong's role as a "super contact" and "super value-added person". The President of the Law Society of Hong Kong, Tang Wenlong, said that the Second Agreement is very good news for the legal community in Hong Kong. The industry welcomes it and hopes to seize the opportunity to expand its business. This will also enhance the confidence of international investors. Deepening economic and trade cooperation and accelerating integrated development. The Mainland and Hong Kong signed CEPA in 2003, which has now been upgraded to a comprehensive and modern free trade agreement covering four important areas: goods trade, service trade, investment, and economic and technological cooperation. CEPA has brought enormous economic benefits to Hong Kong. Many industries in Hong Kong have benefited from this and successfully expanded their business to the mainland. Since the implementation of CEPA, all goods produced in Hong Kong and complying with the CEPA rules of origin are eligible for zero tariff benefits when entering the mainland. In addition, in terms of trade in services, the mainland and Hong Kong have basically achieved liberalization of trade in services. Hong Kong Chief Executive Carrie Lam has mentioned on multiple occasions that the Second Agreement has created more favorable conditions for Hong Kong enterprises and professionals to enter the mainland market. He encourages Hong Kong and even global enterprises to make good use of the new preferential treatment under CEPA, explore the endless opportunities in the mainland market, and serve the country by "bringing in" funds and talents, and enabling enterprises to "go global" for development. Recently, the SAR government has been promoting the implementation of Agreement II through various means. Actively contacting different chambers of commerce, industries, and consulting organizations to enhance the industry's understanding of open measures. On February 19th, the Special Administrative Region Government and the Ministry of Commerce jointly held a lecture to introduce the content and implementation arrangements of relevant measures. The lecture attracted over 350 representatives from Hong Kong and foreign chambers of commerce, consulates in Hong Kong, major trade organizations, and professional sectors. During his speech, Fan Shijie, Director of the Taiwan, Hong Kong, and Macau Affairs Department of the Ministry of Commerce, stated that the country has always been a strong backing for Hong Kong's development. The central government's determination to support Hong Kong's economic development and improve people's livelihoods is unwavering. Through CEPA, it strengthens openness and cooperation, and supports Hong Kong investors and global investors to enter the mainland through Hong Kong. We also support more Hong Kong enterprises to participate in major exhibitions such as the China International Import Expo, Canton Fair, and China International Fair for Trade in Services, providing docking services for Hong Kong businesses to explore the mainland market and share development opportunities. (New Society)