Three FTZs officially launched
April 27, 2015 Category Foreign trade, Weekly
China officially inaugurated three new free trade zones (FTZs) on April 21 in Guangdong, Tianjin and Fujian. Each will cover around 120 square kilometers. China’s first FTZ, set up in Shanghai in September 2013, will also be quadrupled in size, taking in the Lujiazui financial hub, the manufacturing zone of Jinqiao and the high-tech base of Zhangjiang. This will increase its area more than four-fold to 120.27 square km. “FTZs are important for exploring new paths and acquiring new experiences for further reforms and opening-up,” the Chinese government said in a statement. Since its establishment in 2013, the Shanghai FTZ has introduced a raft of policies to reduce red tape, simplify customs procedures, limit government interference, widen market access across service sectors and deregulate financial markets. The Guangdong zone will aim for better economic cooperation with Hong Kong and Macao, lowering the thresholds for investors, especially in areas such as financial services, shipping services and technology services. Hong Kong and Macao companies will be allowed to issue yuan-denominated bonds in the mainland and explore ways for firms in the zone to sell yuan-denominated shares in Hong Kong. With its proximity to Taiwan, the Fujian zone will play a role in boosting cross-strait ties and become a “core region” of the 21st Century Maritime Silk Road. The Tianjin FTZ will promote integrated development with nearby Beijing and Hebei province. The government also released a new version of the negative list for investments in the new free trade zones. The list specifies restrictions for foreign investment in 122 business areas, down from the previous 139 in the list adopted by the Shanghai zone. Foreign investors are still barred from sectors such as air traffic control, internet mapping, radio and TV production and postal services. Foreign investments are restricted to joint ventures with domestic companies in sectors such as health care, securities companies, mutual fund management and shipping agencies, the Shanghai Daily reports.
Pilot free trade zones, now operating in four areas, must have the courage to roll out bolder reforms, Premier Li Keqiang said as he visited Xiamen, part of the Fujian Pilot FTZ. “FTZs should not become places for favorable policies. Instead, they should be a powerhouse of reforms,” Li said.
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