What is happening
At its July 30, 2026 regular press conference, China’s Ministry of Commerce (MOFCOM) reaffirmed that 2026 — the first year of China’s 15th Five-Year Plan (2026–2030) — will see a new round of CEPA upgrading between the Chinese mainland and Hong Kong. CEPA (Closer Economic Partnership Arrangement) is the preferential framework that has already fully liberalized trade in goods between the mainland and Hong Kong and largely liberalized trade in services. The next upgrade aims to deepen both, and to accelerate commerce across the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
Why it matters for foreign brands
Hong Kong has long been the preferred launchpad for overseas brands entering China. Most international companies set up a Hong Kong entity first, then expand into the mainland. CEPA gives Hong Kong-incorporated companies and service providers preferential, often zero-tariff access to the mainland market that ordinary foreign firms do not enjoy. With services trade now essentially liberalized and a fresh upgrade underway, the advantages are widening:
- Faster market entry — Hong Kong companies can clear goods and establish service operations on streamlined terms.
- Lower cost — tariff and quota relief under CEPA beats standard most-favoured-nation treatment.
- GBA scale — the Greater Bay Area connects Hong Kong with Shenzhen, Guangzhou and 11 cities, some 86 million consumers, as one integrated consumer market.
How it helps you sell in China
For a foreign brand, the practical playbook is: incorporate or partner in Hong Kong, then leverage CEPA + the GBA to distribute into the mainland through cross-border e-commerce, Tmall Global, JD, Douyin and offline retail. MOFCOM also confirmed continued support for Hong Kong’s role in the Belt and Road “overseas comprehensive service system” — meaning Hong Kong-based service providers (logistics, legal, compliance, marketing) are being strengthened to serve brands going into China.
Two recommendations
- Use Hong Kong as your China entry hub. A Hong Kong entity plus a CEPA-aware structure can cut time-to-market and duties versus a direct foreign-invested setup.
- Work with a China Trading Partner. Navigating CEPA rules, GBA logistics and platform onboarding is specialist work. A local partner handles registration, compliance, cross-border fulfillment and store operations so you focus on the product.
Bottom line: the 2026 CEPA upgrade and GBA push make Hong Kong a more attractive, lower-friction gateway into the world’s second-largest consumer market. Foreign brands that structure their China entry through Hong Kong now will be positioned ahead of the curve.
Related Reading
How to Enter the China Market in 2026: Complete Guide | Hongshengze — A complete guide to entering the China market in 2026.
Related Reading
Planning to sell on China’s biggest cross-border marketplace? Read our complete guide to Tmall Global entry: requirements, fees and the 2026 process.