China adds seven Free Trade Zone in inland region
China Knowledge Online
May 11, 2017

In the third batch of Free Trade Zones (FTZ) announced by vice minister of Commerce, Wang Shouwen seven more will be added to bring the number to thirteen. This time the provinces included are mainly located in the inland region.

The provinces selected are Liaoning, Zhejiang, Henan, Hubei, Sichuan and Shaanxi. Chongqing, the municipality located in the western region, also joins the list, and it is the third after Shanghai and Tianjin.

These new FTZs will align with the country's national economic strategies such as One Belt One Road that link the economic corridors that link Middle East, South East Asia, South Asia, large part of Europe.

Among the country's thousands of industrial parks where many have matured and usually focus on certain types of investments and industries the FTZ concept offer foreign companies easier domestic market access, convenience setup, favorable tax treatments and freer and more efficient administration is conducive for both local and foreign companies.

Shanghai Free Trade Zone, the first to launch this concept in 2013, has received huge investments; especially businesses in import-export, logistic and financial services. Last year more than RMB 88 billion were invested in the first four FTZs located in Shanghai, Fujian, Guangdong and Tianjin, and total revenues generated these FTZs amounted to RMB 409 billion where growth beats the national average.

At the press conference Wang says the pilot FTZs could speed up the country's market liberalization and attract more diverse range of foreign business participation.

As of to date China has developed some five thousands industrial of different industry focus and vary in output scale. Some of which like the AAA-rated Beijing E-Town, Guangzhou Development District, Kunshan Economic & Technological Development Zone (ETDZ), Qingdao ETDZ, Yantai ETDZ, Dalian ETDZ, Tianjin TEDA, Zhongguancun Science Park and Singapore Suzhou Industrial Park each generates over US$ 50 billion GDP, or almost the size of entire Croatia.

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