Foreign Enterprises Can Earn More! 3 New FTZs To Be Set
China has established three new free trade zones which further facilitate the country’s high-level opening up, according to the Ministry of Commerce (MOC). Foreign investors and foreign enterprises are getting more opportunities to expand their business and make profits now. According to senior government officials and experts of the MOC, China will establish three new pilot free trade zones (FTZs) to further open up and tap into the export-oriented economies. The following areas will get high-quality growth and development in the new pilot zones:
Digital economy
High-end manufacturing
Regional integration
They made the remark after the State Council and released plans for the new pilot zones in Beijing and in Hunan and Anhui provinces on Sept 21. So far, the number of the country’s free trade zones has increased to 21.
Wang Shouwen, vice-minister of commerce, said the move shows China’s resolve to pursue high-level opening-up and ensure the safety and stability of the industrial and supply chains. In 2013, China set up its first free trade zone in Shanghai to attract more foreign investment and promote trade and regional integration. Since then, the country has added 20 zones. By now, the 21 pilot FTZs in China include Shanghai, Guangdong, Tianjin, Fujian, Liaoning, Zhejiang, Henan, Hubei, Chongqing, Sichuan, Shaanxi, Hainan, Shandong, Jiangsu, Hebei, Yunnan, Guangxi, Heilongjiang, Beijing, Hunan, and Anhui.
According to the government plan, the pilot FTZ in Beijing will cover an area of 119.68 square kilometers, including three areas for:
Science and technology innovation
International business services
High-end industries
Beijing will treat foreign investors similarly to domestic investors. The government will maintain a negative list that bars some economic activities, improve trade access and relax restrictions on the service trade in the Beijing-Tianjin-Hebei region where conditions permit, said Beijing Vice-Mayor Yang Jinbai. Also, Beijing will build a pilot zone for digital and big data businesses to boost technological innovation and opening-up of its services sector and digital economy, he said.
As for the pilot FTZs in Hunan and Anhui, they will respectively cover areas of 119.76 square kilometers and 119.86 square kilometers. He Baoxiang, vice-governor of Hunan, said that with the support of the new preferential policy, the pilot zone there aims to boost outbound direct investment and international cooperation, particularly with African countries and those related to the Belt and Road Initiative. The FTZ in Hunan will further improve the local business environment while promoting innovation and improving the intellectual property protection system. It will also encourage more cross-industry cooperation with companies in the province. “Benefiting from strong transportation links to the eastern hub with Shanghai, the southern hub with Guangzhou and the western hub with Chongqing, we believe the Hunan FTZ will enable tremendous opportunities for the growth of Central China,” said Fernando Teixeira, CEO of a Sino-European joint venture in Hunan. The Anhui FTZ, located in the Yangtze River Delta region, will boost the region’s development and high-end manufacturing, integrated circuit, artificial intelligence and cross-border e-commerce businesses, said Zhang Xi, Anhui’s vice-governor. Zhu Congjiu, vice-governor of Zhejiang, said Ningbo will be allowed to expand its pilot FTZ. The zone has been planned to become a global shipping hub, an influential oil and gas resource allocation center, a supply chain innovation center and a high-quality smart manufacturing demonstration area.
We will keep following the updates on the preferential measures for foreigners and foreign trade-related enterprises. Stay tuned! If you have any questions on doing business in China, please feel free to contact HACOS.
