China’s FTZs sign of further opening-up
CHINA’S pilot free trade zones have ser ved as test beds for reforms and as major drivers of loca l economic grow t h since t he f irst FTZ – t he China (Shanghai) Pilot Free Trade Zone – was established in 2013.
Offering preferentia l policies for importing, handling, manufacturing and exporting of goods, as well as other advantageous policies such as ta x incentives, free f low and exchange of capita l, and streamlined reg ulation and fast-tracked customs procedures, they have acted as prov ing grounds for reforms and become magnets for foreign investments.
In t he f irst half of t his year, t he countr y’s 18 ex isting FTZs, each of which has its own particular focus and role, attracted a combined tota l of 80.8 billion y uan ($12 billion) in foreign investment, 17.1 per cent of t he tota l for t he countr y. They a lso accounted for 15.6 per cent of China’s foreign trade, according to t he Ministr y of Commerce.
Based on t his successf ul practice, China announced on Monday that it will establish t hree more pilot free trade zones, a long with the expansion of t he ex isting free trade zone in t he eastern coasta l prov ince of Zhejiang, demonstrating its commitment to continued opening-up at a time when countries are display ing a tendency to be more inward look ing as a result of t he global healt h crisis.
The master plan outlines the priorities for each zone and pledges to give them greater space to explore reforms.
The priorities for t he Beijing pilot
FTZ are innovation and the digita l economy and it is tasked with creating a f irst-class internationa l env ironment for innovation and entrepreneurship, advancing innovation in the management of the trade in ser v ices and exploring t he construction of an internationa l port for t he trade in information.
The goals for the new pilot FTZ in Hunan are to establish an internationa l investment and trade corridor linking the Yangtze River Economic Belt and the Guangdong-Hong Kong-Macao Greater Bay Area, and to be the leading area for in-depth economic and trade cooperation wit h Africa.
The Anhui pilot FTZ is intended to promote the integrated development of the Yangtze River Delta region and to set t he standard for the opening-up of the inland region by promoting the in-depth integration of scientif ic and technologica l innovation and the development of the rea l economy.
The expansion of the Zhejiang pilot FTZ is to enable t he establishment of a commodity resource a llocation base centred on oil and gas.
The announcement of the three new FTZs and the expansion of an ex isting one underscore how successf ully t he FTZs have played t heir designed roles in helping to attract foreign investment and foreign trade. The plan not only highlights China’s commitment to further opening-up, but a lso the government’s resolve to continue advancing reforms to spur the economy despite the pandemic.