Guangdong launches consultation on free-trade zone measures, with focus on cooperation with Hong Kong and Macau
Guangdong has launched a public consultation on how to manage its planned free-trade zone, with a focus on cross-border collaboration with Hong Kong and Macau and the setting up of a supervisory body.
Guangdong has launched a public consultation on how to manage its planned free-trade zone, with a focus on cross-border collaboration with Hong Kong and Macau and the setting up of a supervisory body.
But an expert has already cast doubts on its proposed measures, questioning its complicated governance structure and whether the Guangdong FTZ has any chance of doing better than China's first FTZ in Shanghai.
Guangdong's Legislative Affairs Office released its proposed China [Guangdong] Free Trade Zone Pilot administrative measures on Monday.
The proposed measures feature moves to eliminate or relax restrictions targeting Hong Kong and Macau investors and allow more recognition for professionals from the two territories to practise in the Guangdong FTZ.
The Guangdong government will also explore ways to bridge the social security systems of Hong Kong and Macau residents who live and work in the FTZ.
These moves are in keeping with the province's Closer Economic Partnership Agreement with Hong Kong and Macau.
The proposal pledged to develop international shipping transportation and management, and to adopt a "negative list" approach to foreign investment - like that of the Shanghai FTZ - to allow more freedom for registered firms to invest in all sectors on the zone unless explicitly prohibited.
It also proposed that the Guangdong government would set up a coordination authority vested with provincial-level powers to coordinate policies, develop strategies, direct reform and study major development issues that the FTZ faced.
Under that authority would be the Guangdong FTZ management authority, tasked with drafting pilot regulations and coordinating cross-border collaboration, among other duties.
Each of the Guangdong FTZ districts in Nansha , Hengqin , Qianhai and Shekou would be managed by its own district management body, headed by the local city governments of Guangzhou, Shenzhen and Zhuhai .
But Professor Lin Jiang, deputy chief of Sun Yat-sen University's Free Trade Zone Research Institute, said the proposed structure was too complex.
"The Shanghai FTZ has only two levels of government. The Guangdong version is first headed by the provincial government, followed by the city governments, then another layer called the national new zone management committee, the free trade zone district management committee, as well as the district governments. If not handled well, it will slow the FTZ's efficiency."
The consultation runs until February 3.
