During the mid-1990s of last century, after a series of economic events such as serious financial crisis, depression of US economy as well as global economy, and so on, the economy of Hong Kong has been through a downturn. In the 21st century, globalization and region collectivization have become the trend of the world economy. Hong Kong turned back to Mainland before 6th anniversary one day on 29 June 2003, finally, reached a final agreement of “Closer Economic Partnership Arrangement (CEPA)”which was born by citizen of two lands and passed to government for making it become reality. As the mainland has signed the CEPA with Hong Kong and Macao, the Pan-Pearl River Delta also promoted its economic integration with Hong Kong and Macao. CEPA carried out in January 1, 2004, included the good trade, the service trade and conveniences of the investment in order that to improve the lever between Hong Kong, Macao and the mainland.
In recent years, many researches have been done on CEPA’s impact to the mainland, and certain accomplishment has been made. With the predecessor’s studies, this paper firstly introduces the background and influence of CEPA; secondly, analyses the problems brought by CEPA to Pan-Pearl River Delta, which comes at the same time with the opportunities; thirdly, give some advises and measurements for those opportunities and challenges; finally, predicts the future of Pan-Pearl River Delta’s economy after the signing of CEPA.
All in all, CEPA have a substantial effect to China’s economy. As long as we go forward and never give up for the failure, Mainland ,Hong Kong and Macau economic cooperation will be secure .Hopefully, in 21 century their successful cooperation could be seen it clearer.
[key words] CEPA, The Pan-Pearl River Delta, Region Economy