Resumption of multiple-entry visas for Shenzhen residents ‘unlikely’ to give rise to parallel traders, John Lee says
Hong Kong Free Press
The resumption of multiple-entry Hong Kong visas for Shenzhen residents is unlikely to give rise to the smuggling practices that once brought overcrowding to northern districts, leader John Lee has said as he cited changes in consumer habits.
Lee made the comments at his weekly press conference on Tuesday morning in response to authorities reviving the multiple-entry policy for Shenzhen residents. Starting from Sunday, Shenzhen residents can make unlimited trips to Hong Kong under the resumption of an expanded visa scheme, staying for a maximum of seven days at a time.
Currently, Shenzhen residents can only make weekly trips to Hong Kong under a “one-trip-per-week policy.” The restarting of the multiple-entry policy marks a comeback from 2015, when it was suspended in favour of the weekly scheme due to concerns about the affect of parallel trading on local neighbourhoods.
Parallel trading refers to the phenomenon of mainland Chinese visitors making several same-day trips to and from Hong Kong to buy items – often pharmaceuticals and groceries – and take them back to China for resale. Residents said the traders caused congestion and sparked shortages of goods in the northern districts.
Lee said on Tuesday that the revived scheme would cover a broader swathe of Shenzhen residents compared to before 2015. Non-permanent residents of Shenzhen holding residence permits, such as those who come from rural areas and work in Shenzhen, would also qualify.
A total of 10 million Shenzhen residents are therefore eligible for the multiple-entry Hong Kong visa, Lee said, adding that he was grateful to the Central government for resuming the scheme.
“I’ve heard that Shenzhen residents look forward to visit Hong Kong – finally they can come whenever they want… ” Lee said in Cantonese.
When asked whether the scheme will bring a wave of unlicensed cross-border traders like what happened 10 years ago, Lee said this was “unlikely.”
“We’re very confident that the problem of parallel trading will be under control, and it’s unlikely to resume because first of all, consumers’ habits have changed and there are a diversity of products now available in mainland China… secondly, digital commerce has changed people’s habits…” Lee said in Cantonese.
“I am also confident in our law enforcement capabilities. With past experiences, we are prepared and have plans for handling parallel trading issues. We will take action if there are any… problems,” Lee continued.
Cross-border traders
In 2009, Beijing introduced the multiple-entry Hong Kong visa for Shenzhen residents for the first time with an aim of boosting Hong Kong’s economy after the financial crisis.
However, some residents, referred to as parallel traders, took advantage of the visa scheme to smuggle products from Hong Kong to mainland China to be resold. Popular goods that were brought across the border included milk powder, household necessities and digital products such as iPhones.
Residents in northern towns like Sheung Shui and Sha Tin, frequented by parallel traders, complained about overcrowding and increased costs of living.
Local residents living in northern districts formed concern groups in 2012. In the years after, the city saw protests against the multiple-entry visa scheme and cross-border traders, with some ending in violence.
The visa scheme was suspended in 2015.
HKFP reported that the trend of cross-border trading had reversed over the past year, with people delivering mainland Chinese products to Hongkongers looking for good deals.
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