A new milestone has been reached in terms of CEPA implementation, with the subsidiary agreement taking effect from March 2015 to provide basically free services trade between Hong Kong and Guangdong. It adds a negative list to the positive list already adopted, while according national treatment status to Hong Kong service suppliers (HKSS) in nearly 60 sub-sectors with a commercial presence in Guangdong.
Demand for frozen food has been rising rapidly among city dwellers in the YRD, while food and aquaculture businesses are hoping to expand their overseas markets by making use of cold chain services. But China is in need of advanced solutions to improve its cold chain logistics operations. All these bode well for Hong Kong companies which are competent in cold chain logistics management and application of latest technology.
Sri Lanka is now an alternative production base in South Asia for labour-intensive operation. Hong Kong manufacturers looking to relocate from the Chinese mainland, however, are advised to take note of a number of practical considerations that may add to operating costs.