The emergence of low-cost, alternative manufacturing bases in the Greater Mekong Sub-region (GMS) is fostering an increasingly complex trading network amid expanding intra-regional trade. With the most developed transport infrastructure in the GMS, Thailand is a popular hub for managing regional supply chains, a role that will be strengthened following the launch of the ASEAN Economic Community (AEC).
The CEPA Subsidiary Agreement achieves basically free trade with Guangdong for Hong Kong services suppliers. By giving them additional operational flexibility, the agreement further widens the transportation and tourism services market in Guangdong for Hong Kong companies. It adopts a negative-list approach, stipulating that Hong Kong companies are accorded the same rights as mainland companies in Guangdong.
For mainland shoppers, the move to simplify the process of online ordering of goods from abroad continues apace. Two cross-border e-commerce pilot enterprises have recently gone online in Guangzhou. The development marks the next stage in the ongoing process of easing the import of goods into China.
Imminent water pollution regulation changes are driving rapid expansion in the mainland water industry, with many companies now obliged to upgrade their purification capabilities. Overall, though, a number of innovative technologies and new business models related to water cleansing systems are helping to soften the financial blow somewhat.