Introduction

The State Council authorized to establish China (Shanghai) Pilot Free Trade Zone, China (Guangdong) Pilot Free Trade Zone, China (Tianjin) Pilot Free Trade Zone and China (Fujian) Pilot Free Trade Zone in 2013 and 2015 respectively. This was a major move of China under the new trend in expediting the reform and opening up as well as promoting more in-depth cooperation among Mainland, Hong Kong and Macao, accelerating the implementation of strategy of coordinated development of the Beijing, Tianjin, and Hebei region and deepening the cross-Strait economic cooperation. This was also of great significance to speed up transformation of government functions, actively explore innovative management mode, promote trade and investment facilitation, explore new channel for overall in-depth reform and expansion of liberalization, as well as to accumulate new experiences.

The scope of implementation for China (Guangdong) Pilot Free Trade Zone is set at 116.2 km² and covers three areas: Nansha Area of Guangzhou, a 60 km² district (incorporates 7.06 km² of Guangzhou’s Nansha Bonded Port Area); Qianhai & Shekou Area of Shenzhen, a 28.2 km² district (incorporates 3.71 km² of Shenzhen’s Qianhai Bay Bonded Port Area), and Hengqin Area of Zhuhai, a 28 km² district. Nansha Area of Guangzhou will prioritize shipping logistics, special finance, international trade, high-end manufacturing and other industries, to be established as a new modern industrial base with manufacturing service industry as the focus, and a world-leading comprehensive service hub; Qianhai & Shekou Area of Shenzhen will prioritize finance, modern logistics, information services, science and technology services and other strategic emerging service industries, to be established as an experimental window to the world for China’s financial industry and become a significant base for global service trade and a international hub port; Hengqin Area of Zhuhai will prioritize tourism, leisure and health, business financial services, culture, science, education and high tech, and other industries, to be established as an area of open and leading culture and education, and a leisure and recreation base for international commercial services, as well as create a new carrier that promotes appropriate and diversified economic development in Macao.

 The China (Fujian) Pilot Free Trade Zone covers a total area of 118.04 sq km and consists of three areas: Pingtan Area (43 sq km), Xiamen Area (43.78 sq km, including the 0.6-sq km Xiangyu Bonded Zone, 0.7-sq km Xiangyu Bonded Logistics Park and 9.51-sq km Haicang Bonded Port), and Fuzhou Area (31.26 sq km, including the 0.6-sq km Fuzhou Bonded Zone, 1.14-sq km Fuzhou Export Processing Zone and 9.26-sq km Fuzhou Bonded Port). The Pingtan Area will focus on building cross-Strait common homeland and international resort island. It will implement more liberal measures to facilitate investment and trade, capital and personnel exchanges. The Xiamen Area will focus on building the demonstration zone for cooperation in cross-Strait newly developed industries and modern service sector, the southeast region international shipping centre, cross-Strait financial service centre for regional cooperation and cross-Strait trade centre. The Fuzhou Area will focus on construction of an advanced manufacturing base, important platform for the 21st Century Maritime Silk Road and demonstration zone for cooperation in cross-Strait service trade and financial innovation.  

The China (Tianjin) Pilot Free Trade Zone , with a total area of 119.9km², consists of three areas: the 30-km² Tianjin Port Dongjiang Area (including the 10-km² Dongjiang Free Trade Port Zone), the 43.1-km² Tianjin Airport Area (including the 1-km² airport area of Tianjin Port Free Trade Zone and the 1.96-km² Binhai New Area Integrated Free Trade Zone) and the 46.8-km² Binhai CBD Area (including the seaport area of Tianjin Port Free Trade Zone and the 4-km² Bonded Logistics Park). The Tianjin Port Dongjiang Area will prioritize in developing modern service industries, such as shipping & logistics, international trade, financial leasing. The Tianjin Airport Area will prioritize in developing high-end manufacturing industries such as aviation & aerospace, machinery manufacturing, next-generation information technology and production services such as R&D design, aviation logistics. The Binhai CBD Area will prioritize in developing modern service industries focusing on financial innovation.

 The scope of implementation for China (Shanghai) Pilot Free Trade Zone is set at 120.72 km² and covers the following areas: Bonded Area (28.78 sq.km.) with 4 zones namely Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Free Trade Zone; Lujiazui Financial Area (34.26 sq.km.); Jinqiao Export Processing Zone (20.48 sq.km.) and Zhangjiang High Tech Park (37.2 sq.km.). China (Shanghai) Pilot Free Trade Zone has carried out institutional reform and innovation in areas of investment, foreign trade, finance and post-filing supervision to form a legal framework for investment and trade within the zone. It has adopted the negative list for investment management, simplified foreign trade supervision procedures, promoted financial system reform to realize RMB capital account convertibility, and advocated post-filing supervision as a way to transform government functions. It will formulate rules for investment and trade that comply with international practices, give full leverage to the radiating and exemplary role of key functional areas of finance and trade, advanced manufacturing and technological innovation, and strive to build a free trade zone with the highest degree of openness, investment and trade facilitation, currency conversion freedom, convenient and efficient regulation, and a sound legal environment.

 

Links

Diagram:China Pilot Free Trade Zone

http://www.economia.gov.mo/public/data/rc/pftz_pm/attach/135c2d972c2ab0df0f6f1b27b8f3c34d84ccef57/en/cp_free_trade_zones_en.pdf

Opinions of the State Council on the Implementation of the Market Access Negative List System

http://www.gov.cn/zhengce/content/2015-10/19/content_10247.htm

Special Management Measures (Negative List) for Foreign Investment Access in Pilot Free Trade Zones

http://www.gov.cn/zhengce/content/2015-04/20/content_9627.htm

Announcement No. 12 [2015] of the Ministry of Commerce—Measures for the Recordation Administration of Foreign Investment in China Pilot Free Trade Zone (for Trial Implementation)

http://www.mofcom.gov.cn/article/b/g/201506/20150600999047.shtml

Measures for the Pilot Program of National Security Review of Foreign Investment in Pilot Free Trade Zones

http://www.gov.cn/zhengce/content/2015-04/20/content_9629.htm

Notice of Taxation on the Policies and Catalogue of Income Tax Preferences

http://www.gd-n-tax.gov.cn/pub/001002/bsfw/bszn/E020310/201404/t20140421_392866.html

The Framework Plan for China (Guangdong) Pilot Free Trade Zone

http://www.gov.cn/zhengce/content/2015-04/20/content_9623.htm

Official Website of China (Guangdong) Pilot Free Trade Zone

http://www.china-gdftz.gov.cn/

The Framework Plan for China (Fujian) Pilot Free Trade Zone

http://www.gov.cn/zhengce/content/2015-04/20/content_9633.htm

Official Website of China (Fujian) Pilot Free Trade Zone

http://www.china-fjftz.gov.cn/

The Framework Plan for China (Tianjin) Pilot Free Trade

http://www.gov.cn/zhengce/content/2015-04/20/content_9625.htm 

Official Website of China (Tianjin) Pilot Free Trade Zone

http://www.china-tjftz.gov.cn/

Plan for Further Deepening the Reform and Opening-up of China (Shanghai) Pilot Free Trade Zone

http://www.gov.cn/zhengce/content/2015-04/20/content_9631.htm

The Framework Plan for China (Shanghai) Pilot Free Trade

http://www.gov.cn/zhengce/content/2013-09/27/content_4036.htm

Official Website of China (Shanghai) Pilot Free Trade