(Yicai Global) Jan. 18 -- China's Ministry of Commerce is mulling an upgrade to the Closer Economic Partnership Agreement to broaden its scope in Macao and Hong Kong and conduct pilot projects in Guangdong province.

The State Council, China's cabinet, has approved the removal of a barrier which marks the boundary of Shenzhen Special Economic Zone in Guangdong, the ministry said today. The move should improve Shenzhen's investment environment and make it easier for Hong Kong residents to invest in the province.

The ministry wants to make the change to promote the free flow of goods, capital, personnel and information between Guangdong, Hong Kong and Macao, spokesman Gao Feng said at a regular press briefing today.

China's commerce ministry, Hong Kong and Macao signed the CEPA in 2003 to phase out trade tariffs and non-tariff barriers between the mainland and two special administrative regions and encourage trade and investment.

The State Council agreed on Jan. 15 to remove the 84.6-kilometer barbed wire fence that China built in 1982 to separate Shenzhen SEZ, the country's first such zone, from outside regions. The barricade was originally to prevent smuggling and tax evasion across the border, but is now an inconvenience to local transport and urban planning.