Lower the bar for HK creative industry to enter Qianhai
Updated: 2013-05-03 06:10
By Selina Chow(HK Edition)
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The State Council on Aug 26, 2010 gave the green light for the implementation of a development plan of the modern service industry cooperation between Hong Kong and Shenzhen in Qianhai. Since then Hong Kong's financial industry has been rearing to make waves in Qianhai. So is the city's design sector, which cannot wait to grab a piece of the action in the creative industry's development.
According to the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Overall Development Plan, the Qianhai Cooperation Zone (QCZ) will be home to a high-end, high-level cultural creative industry park that will point the way for the creative industry, attract well-known design studios from around the country and the world as well as intermediary services, boost the cultural creative industry's development and build an international center for the creative industry. As the vanguard of Hong Kong's creative industry the design sector must not miss such a rare opportunity for fresh development.
According to Freeman Lau, vice-chairman of the Board of Directors of Hong Kong Design Center, the design sectors in Hong Kong and Shenzhen have been working together in building a cooperation platform for joint development of the creative industry on both sides of the boundary since 2008, including an annual forum held in the two neighboring cities alternately to exchange ideas from 2010. The design sectors in both cities responded enthusiastically to the plan and put forward many ideas concerning creative industry development in Qianhai at the Second Shenzhen-Hong Kong Cultural Creativity Forum in July 2011.
After a visit to Qianhai, however, Hong Kong's design sector realized it takes a lot to enter the QCZ and set up shop there. First, a firm has to get government approval, which requires minimum registered capital, tough conditions for land use and records showing past total assets, earnings and tax payments as well as current spending and capital, plus future economic and social results after each project begins. For example, a design studio has to achieve 50,000 yuan ($8,120) in production value per square meter of its building area just to move in. Also, a creative firm can enjoy 15 percent corporate income tax in Qianhai only if at least 60 percent of its main operations meet the requirements listed in the Preferred Industry Directory.
It should be noted that 99 percent of design firms in Hong Kong are small- or medium-sized enterprises and most of them are in fact tiny businesses, for which it is simply impossible to meet the requirements for entering the QCZ. Little wonder Hong Kong's design sector has lost any hope of fulfilling their aspirations in Qianhai after learning about its entry requirements.
Hong Kong owes its ability to nurture so many talented, unique and business-savvy creative designers with global vision, rich professional experience and skills to provide highly-efficient services to its geographical location, business environment, diverse culture and matching rules. If they are involved in the QCZ's development I'm sure they will lead the way for the country's products to advance steadily from "Made in China" toward "Designed in China" and make the QCZ a bona fide international creative center combining Chinese and Western cultures.
That is why I propose the central authorities consider lowering the entrance requirements for Hong Kong-based creative firms to set up shop in the QCZ. For example, the Shenzhen and Hong Kong governments should jointly formulate a full set of supportive policies concerning policy coordination, research, funding assistance, tax perks, innovative management and market expansion to assist small- and medium-sized enterprises; establish a Hong Kong design center with a complete business support plan tailor-made for small firms and individual designers operating there. For instance, the requirements for land use can be waived in the initial three years after moving in; while those for land use by larger firms in Qianhai can be waived in the first year, lowered to 20,000 yuan in annual production value per square meter (from 50,000 yuan) and increased by 10,000 yuan a year until reaching 50,000 yuan per square meter in the fifth. Also, all creative firms should enjoy the same corporate income tax of 15 percent.
It is our deep belief that Hong Kong's design sector will surely make full use of its advantages and help Qianhai reach its goal if it gets a chance to operate there.
The author is a Hong Kong member of the CPPCC.
(HK Edition 05/03/2013 page1)