Policy Address

Enhancing Exchanges between Hong Kong and Taiwan

50.        In response to the latest development in cross-Strait relations, we will actively pursue economic, cultural, social and other exchanges with Taiwan in accordance with the Basic Law and Qian Qichen’s Seven Principles. The Central Government encourages and supports the Hong Kong Special Administrative Region’s efforts. We will adopt the following strategies for developing our relations with Taiwan:

(1) Establishing a co-operation framework — Apart from initiating the work of the bilateral business co-operation committees, we will establish a Hong Kong-Taiwan Economic and Cultural Co-operation and Promotion Council to promote multi-faceted, multi-level exchanges with Taiwan. We will consider setting up a multi-functional office in Taiwan at an appropriate time and in an appropriate format to enhance high-level exchanges between the two places;

(2) Fostering bilateral economic co-operation with Taiwan — We will foster economic co-operation with Taiwan, focusing particularly on trade in services, and will commence discussions with Taiwan on arrangements for avoidance of double taxation, with a view to achieving progress and results; and

(3) Playing an active role in financial, economic and trade, tourism and other exchanges between the Mainland, Taiwan and Hong Kong — We will play an active role in providing cross-Strait RMB clearing services. We will seek to enable Hong Kong travel agents to operate in the Mainland tours to Taiwan, and explore the further development of cross-Strait Mainland-Hong Kong-Taiwan multi-destination tourism products, including air and cruise packages.

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