Chinese Premier Li Keqiang announced on December 12 that three more Free Trade Zones (FTZ) will be established in China, based on the model of the Shanghai FTZ, which was launched in September of last year.
The three new FTZs will be set up in Tianjin, Guangdong province and Fujian province. Each is to make full use of its geographic location and carry special local features. The announcement confirmed long speculation that a next wave of FTZs would be launched around the areas of the Pearl River Delta (Guangdong province), Bohai Bay (Tianjin, Beijing and Hebei province) and Xiamen (Fujian province).
Designed as a testing ground for further reforms and policies, the Shanghai FTZ features lower thresholds for corporate establishment and liberalized foreign exchange. The zone also offers special benefits to certain industries (including e-commerce, legal services, and logistics) and adopts a“negative list”approach to foreign investment.
