Qianhai Shopping Center to Sell Merchandise from Hong Kong
A shopping center will be set up in Qianhai that will sell merchandise coming from Hong Kong before the year ends. An official for the Qianhai Administration bureau is inviting bidding plans from Hong Kong property developers to build the facility. The facility will have three floors and a floor space of 22,000 square meters.
The said shopping center will sell items such as milk formulas, medicine and the center will be designed to relieve pressure that is placed on Hong Kong by the influx of mainland tourists. The center will also give opportunities to Hong Kong firms to connect with the mainland buying power with services while enhancing cooperation between Shenzhen and Hong Kong. Qianhai officials announced in late August the plans to build the shopping mall to provide luxury products, catering and leisure facilities while aiming to provide an equivalent experience to shopping in Hong Kong.
By building the Qianhai Shopping center will hopefully attract shoppers and impact on local retailers depending mainly on taxes. While on the mainland a 17 percent value added tax and import duty of 10 percent for imported goods will be implemented. While in Hong Kong there are no import taxes on good except for cosmetics, liquor and tobacco.
If a similar tax exemption will be given to Qianhai, mainland tourists might prefer shopping in Qianhai rather that traveling to Hong Kong. Now the bureau is applying for tax incentives from the Central Government and make sure that products sold in Shenzhen have the same prices with products in Hong Kong.