Office of the Communications Authority - Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is a free trade agreement signed between the Mainland of China and Hong Kong in 2003. Adopting a building block approach, the Mainland and Hong Kong have continuously expanded the scope and content of CEPA over the years.

CEPA fully reflects the mutually beneficial economic cooperation between the Mainland and Hong Kong. CEPA helps opening up the huge Mainland market for telecommunications and broadcasting sectors in Hong Kong.

Amendments to the Agreement on Trade in Services

The Mainland and Hong Kong signed an agreement on 21 November 2019 to amend the Services Agreement and add new liberalisation measures which have been implemented since 1 June 2020.

The two sides signed an agreement on 9 October 2024 to make further amendments to the Services Agreement (the Amendment Agreement II) for implementation on 1 March 2025. The Amendment Agreement II introduces new liberalisation measures across a number of services sectors where Hong Kong enjoys competitive advantages. The new liberalisation measures make it easier for HKSS and professionals to set up enterprises and develop business in the Mainland. Details of the Amendment Agreement II is available at https://www.tid.gov.hk/en/our_work/cepa/legal_text/trade_in_services_agreement.html#second_agreement.

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Liberalisation Measures under CEPA - Telecommunications Services

The Mainland's Specific Commitments on Liberalisation of Trade in Services for Hong Kong (extract on telecommunications services)

(Positive List)

Sectors or
sub-sectors

2. Communications services
C. Telecommunications services
a.	Voice telephone services
b.	Packet-switched data transmission services
c.	Circuit-switched data transmission services
d.	Telex services
e.	Telegraph services
f.	Facsimile services
g.	Private leased circuit services
h.	Electronic mail services
i.	Voice mail services
j.	On-line information and data base retrieval services
k.	Electronic data interchange (EDI) services
l.	Enhanced/value-added facsimile services, including store and forward, store and retrieve
m.	Code and protocol conversion services
n.	On-line information and/or data processing (including transaction processing)
o.	Other (paging, teleconference, transoceanic mobile communications, air-to-ground communications, etc.)

Specific commitments

1.	To allow Hong Kong service suppliers to distribute in the Mainland telephone service cards which can be used globally but cannot be activated in the Mainland.^{Updated under Amendment Agreement II}
2.	To allow contractual service providers employed by Hong Kong service suppliers, in the mode of movement of natural persons, to provide the following telecommunications services in the Mainland:
	1) Online data processing and transaction processing (confined to e-commerce business websites only);
	2) Call centre services;
	3) Internet access services.

Reserved Restrictive Measures under Commercial Presence (Negative List)

Sector

2. Communications services

Sub-sectors

C. Telecommunications services ^{Note 1}
a.	Voice telephone services
b.	Packet-switched data transmission services
c.	Circuit-switched data transmission services
d.	Telex services
e.	Telegraph services
f.	Facsimile services
g.	Private leased circuit services
h.	Electronic mail services
i.	Voice mail services
j.	On-line information and data base retrieval services
k.	Electronic data interchange (EDI) services
l.	Enhanced/value-added facsimile services, including store and forward, store and retrieve
m.	Code and protocol conversion services
n.	On-line information and/or data processing (including transaction processing)
o.	Other (paging, teleconference, transoceanic mobile communications, air-to-ground communications, etc.)

Obligations concerned:

National Treatment

Reserved Restrictive Measures:

Commercial Presence

1.	For engaging in basic telecommunications services, Hong Kong service suppliers shall set up joint venture enterprises in the Mainland, and the Mainland parties shall be the controlling shareholder.
2.	For the provision of the following services by Hong Kong service suppliers, the proportion of Hong Kong capital in the shareholding shall not exceed 50%:
	1) Online data processing and transaction processing services (except operating e-commerce business websites);
	2) Mainland IP based Virtual Private Network Services;
	3) Internet data centre services;
	4) Internet access services (except for providing Internet access services to end users);
	5) Content services (except application stores);
	6) Content delivery network services;
	7) Code and protocol conversion services.
For clarity and avoidance of doubt, to accord priority to support Hong Kong service suppliers' pilot participation in providing services in Internet data centre, content delivery network, Internet access services, online data processing and transaction processing, as well as information dissemination platforms and information delivery services in content services (except for Internet news information, online publishing, online audiovisual, Internet culture business), content protection and processing services in areas such as Beijing, Shanghai, Hainan and Shenzhen, etc., with no restriction on the shareholding proportion of Hong Kong capital. ^{New Measures under Amendment Agreement II} Note 1 : Classification for this sector is based on the Mainland classification for telecommunications sector.

Liberalisation Measures under CEPA – Audiovisual Services

The Mainland's Specific Commitments on Liberalisation of Trade in Services for Hong Kong (extract on audiovisual services)

(Positive List)

Sectors or
sub-sectors

2. Communications services
D. Audiovisual services
	- Videos and sound recording products
	- Chinese language motion pictures and motion pictures jointly produced
	- Technical services of cable television
	- Jointly produced television dramas
	- Imported dramas
	- Other television programmes
	- Television animations
	- Motion picture or video tape production services (CPC96112)
	- Others

Specific commitments

Technical services of cable television

12.	To allow Hong Kong companies engaging in the operation of cable television networks to provide professional technical services for cable television networks in the Mainland after obtaining the approval of the relevant Mainland authorities.

Jointly produced television dramas

13.	Television dramas co-produced by the Mainland and Hong Kong are permitted to be broadcast and distributed in the same way as Mainland produced television dramas after being examined by the relevant Mainland provincial radio and television administration. ^{Updated under Amendment Agreement II}
14.	Television dramas co-produced by the Mainland and Hong Kong should be subject to the same standard on the number of episodes as that applicable to Mainland produced television dramas.
15.	To relax the restrictions on the percentage of principal creative personnel, Mainland-related content, investment proportion, etc. for television dramas co-produced by Hong Kong and the Mainland; and to shorten the time limit for approval of synopses for any proposal of television drama to be co-produced by the Mainland and Hong Kong.
16.	National Radio and Television Administration has delegated to the provincial radio and television administration the authority of examining the finished tapes of Mainland produced television dramas which are produced by the production organisations under the provinces, autonomous regions or municipalities and participated by artistes or production crew from Hong Kong.
17.	For any proposal of television drama to be co-produced by the Mainland and Hong Kong programme production organisations, the minimum number of words in Chinese contained in the synopsis of each episode is 800. ^{Updated under Amendment Agreement II}
18.	To remove the restriction on the number of Hong Kong people participating as principal creative personnel in online television dramas. ^{Updated under Amendment Agreement II}

Imported dramas

19.	To remove the restriction on the number of Hong Kong produced television dramas imported by Mainland television stations, audiovisual websites and cable television networks, and to relax the restriction on the number and time of broadcast of Hong Kong produced television dramas.
20.	To allow imported dramas produced in Hong Kong to be broadcast during prime time in television stations in the Mainland after obtaining approval from the National Radio and Television Administration. ^{Updated under Amendment Agreement II}

Other television programmes

21.	To remove the restriction on the number of Hong Kong people participating in the production of Mainland television programmes and television dramas.
22.	To remove the restriction on the number of Hong Kong people participating in the production of Mainland online audiovisual programmes.
23.	To allow television programmes other than television dramas co-produced by the Mainland and Hong Kong to be broadcast and distributed in the same way as those produced by the Mainland, after obtaining the approval of the relevant Mainland authorities.
24.	To allow terrestrial and satellite television channels in Hong Kong to obtain the landing right to broadcast within specific areas such as hotels, guesthouses, etc. in the Mainland after obtaining approval from the National Radio and Television Administration. ^{Updated under Amendment Agreement II}

Television animations

25.	To remove the restriction on the number of Hong Kong produced animation television programmes imported by Mainland television stations, audiovisual websites and cable television networks; and to relax the restriction on the number and time of broadcast of Hong Kong produced animation television programmes in the Mainland.
26.	To allow animation television programmes co-produced by the Mainland and Hong Kong to be broadcast and distributed in the same way as those produced by the Mainland, after obtaining the approval of the relevant Mainland authorities.

Reserved Restrictive Measures under Commercial Presence (Negative List)

Sector

2. Communication Services

Sub-sector

D. Audiovisual services
	■ Cinema theatre services
	■ Motion picture or video tape production and distribution services (CPC9611)
	■ Radio and television services (CPC9613)
	■ Others

Obligations concerned:

National Treatment

Reserved Restrictive Measures:

Commercial Presence

Radio and television services

Not to invest in radio stations, television stations, broadcasting television channels (frequencies), broadcasting television transmission networks (transmitting stations, relay stations, broadcasting television satellites, uplinking satellite stations, satellite transposers, microwave link stations, monitoring stations, cable broadcasting television transmission networks, etc.) at any regional level. Not to engage in video-on-demand broadcasting television services and installation services of satellite television receiving facilities.

Not to engage in the production and operation of radio and television programmes (including importing business).

Others

6.	Not to engage in online audiovisual services.

Relevant Guidelines

Name list of Hong Kong Service Suppliers and its Agents

Name list of Hong Kong Service Suppliers and its agents permitted under the Mainland and Hong Kong Closer Economic Partnership Arrangement to distribute in the Mainland telephone service cards

Consumer Guide

Consumer Guide to Users of the Hong Kong Calling Cards Distributed in the Mainland under the Mainland and Hong Kong Closer Economic Partnership Arrangement

Frequently Asked Questions

Other Relevant Information

For more updated information, please visit https://www.tid.gov.hk/en/our_work/cepa.html

Enquiries

For enquiry, please contact OFCA by phone at 2961 6333 or email at cepa-enquiry@ofca.gov.hk.