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Success of FTZs to be replicated
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THE Chinese government is seeking to replicate its success in several free trade zones nationwide.
The State Council has published a circular mapping out the replication, which will see 19 new items applied across the country.
Some of the successes of the FTZs include the introduction of a negative list, which specifies investment sectors off limits to foreign investors and allows industries not on the list to follow the same new investment rules as domestic firms.
Other items include simplified trade procedures and customs regulations.
FTZs are a way of testing new policies, including interest rate liberalization and fewer investment curbs, to better integrate the economy with international practices.
The expansion comes more than three years after the launch of China’s first FTZ in Shanghai.
In late 2014, Tianjin, Fujian and Guangdong were allowed to set up the second group of FTZs. Another seven were added nationwide in August this year.
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