Supportive measures

The initiative is among a slew of innovative measures enforced at Hetao. Since the promulgation of the Development Plan for Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone issued by the State Council in August 2023, a number of groundbreaking policies have been implemented, including "No 1 Channel", "10 Measures by Customs", "Kehui Tong "and favorable personal income tax policies for qualified enterprises and Hong Kong residents.

The innovative measures underscore Hetao's resolve to be a "policy barrier breaker "in scientific and technological cooperation between Shenzhen and Hong Kong.

Under "10 Measures by Customs", the declaration process, health and quarantine checks for research and development items, and systems for the import/export of equipment and instruments, as well as infrastructure supplies, are streamlined.

The "Kehui Tong" pilot program aims to address the challenge of cross-boundary fund transfers for research institutes — a critical step in Shenzhen's push for technological innovation. Before the program came into effect in September 2023, non-enterprise research institutes on the mainland were not eligible to receive research funds from across the boundary or overseas, creating obstacles for Hong Kong universities to establish and operate such research units across the boundary.

As of August this year, five Hong Kong-funded research institutes have transferred research funds from outside the Chinese mainland through the program. The Hetao Shenzhen-Hong Kong Innovation and Translational Medicine Research Institute, for example, has received about 1 million yuan ($140,200) worth of research funds.

The program has since been expanded to 16 cities nationwide, including Beijing, Shanghai, Guangzhou, Hangzhou in Zhejiang province, and Nanjing and Suzhou in Jiangsu province.

The Hetao cooperation zone has made remarkable breakthroughs in reforming its mechanisms and innovation in the past two years, says Zhong Hai, director of the development office at the zone's Shenzhen Park.

"Cross-boundary flows of people, goods, capital, information and technology have been smooth, and barriers to scientific research collaboration between Shenzhen and Hong Kong have been eased, creating a favorable environment for fostering and developing new quality productive forces," he says.