Identifier
Created
Classification
Origin
09HONGKONG159
2009-01-23 07:27:00
UNCLASSIFIED
Consulate Hong Kong
Cable title:
TELECOM TRADE AGREEMENTS 2009 REVIEW
how-toVZCZCXRO3253 RR RUEHCN RUEHGH RUEHVC DE RUEHHK #0159 0230727 ZNR UUUUU ZZH R 230727Z JAN 09 FM AMCONSUL HONG KONG TO RUEHC/SECSTATE WASHDC 6749 INFO RUEHOO/CHINA POSTS COLLECTIVE
UNCLAS HONG KONG 000159
SIPDIS
E.O. 12958: N/A
TAGS: ECPS ETRD USTR HK
SUBJECT: TELECOM TRADE AGREEMENTS 2009 REVIEW
REF: STATE 4730
UNCLAS HONG KONG 000159
SIPDIS
E.O. 12958: N/A
TAGS: ECPS ETRD USTR HK
SUBJECT: TELECOM TRADE AGREEMENTS 2009 REVIEW
REF: STATE 4730
1. This cable responds to the action request in reftel: "What
are the conditions under which a foreign-affiliated company
(i.e. a 50-50 joint venture with a Chinese partner) could
claim a benefit under the CEPA to offer services such as
IP-VPN in China, as a value-added service supplier?"
2. 2007 amendments to the Closer Economic Partnership
Arrangement (CEPA) between the PRC and Hong Kong give Hong
Kong-based Internet Protocol - Virtual Private Network
(IP-VPN) operators national treatment. The CEPA imposes no
geographic restrictions on the operators; they can establish
joint ventures with Mainland Chinese partners in any province
or city in the PRC. The Hong Kong IP-VPN's shareholding
should not exceed 50 percent. The operator is allowed to
either set up a new joint venture in China, or form a joint
venture through merging or acquiring the shares of existing
Mainland telecommunications service providers.
3. In order to enjoy national treatment granted under CEPA,
the IP-VPN operator should be either a registered legal
entity in Hong Kong (defined as a business duly constituted
or otherwise organized under the applicable laws of Hong
Kong, and which has engaged in substantitve IP-VPN operations
in Hong Kong for three to five years),or a "natural person"
of Hong Kong (defined as a Hong Kong permanent resident).
Permanent residents of Hong Kong who obtain CEPA treatment as
a "natural person" are not required to present a Certificate
of Hong Kong Service Supplier (HKSS),but must provide to PRC
authorities proof of permanent residence status in Hong Kong,
and must also provide a Home Visit Permit (if a Chinese
citizen) or a HKSAR passport. An IP-VPN registered as a
legal entity should apply to the Hong Kong Trade and Industry
Department for a Certificate of HKSS, before applying to the
relevant Mainland authorities to receive preferential
treatment under CEPA.
DONOVAN
SIPDIS
E.O. 12958: N/A
TAGS: ECPS ETRD USTR HK
SUBJECT: TELECOM TRADE AGREEMENTS 2009 REVIEW
REF: STATE 4730
1. This cable responds to the action request in reftel: "What
are the conditions under which a foreign-affiliated company
(i.e. a 50-50 joint venture with a Chinese partner) could
claim a benefit under the CEPA to offer services such as
IP-VPN in China, as a value-added service supplier?"
2. 2007 amendments to the Closer Economic Partnership
Arrangement (CEPA) between the PRC and Hong Kong give Hong
Kong-based Internet Protocol - Virtual Private Network
(IP-VPN) operators national treatment. The CEPA imposes no
geographic restrictions on the operators; they can establish
joint ventures with Mainland Chinese partners in any province
or city in the PRC. The Hong Kong IP-VPN's shareholding
should not exceed 50 percent. The operator is allowed to
either set up a new joint venture in China, or form a joint
venture through merging or acquiring the shares of existing
Mainland telecommunications service providers.
3. In order to enjoy national treatment granted under CEPA,
the IP-VPN operator should be either a registered legal
entity in Hong Kong (defined as a business duly constituted
or otherwise organized under the applicable laws of Hong
Kong, and which has engaged in substantitve IP-VPN operations
in Hong Kong for three to five years),or a "natural person"
of Hong Kong (defined as a Hong Kong permanent resident).
Permanent residents of Hong Kong who obtain CEPA treatment as
a "natural person" are not required to present a Certificate
of Hong Kong Service Supplier (HKSS),but must provide to PRC
authorities proof of permanent residence status in Hong Kong,
and must also provide a Home Visit Permit (if a Chinese
citizen) or a HKSAR passport. An IP-VPN registered as a
legal entity should apply to the Hong Kong Trade and Industry
Department for a Certificate of HKSS, before applying to the
relevant Mainland authorities to receive preferential
treatment under CEPA.
DONOVAN