China approves three new free-trade zones
New zones will copy Shanghai FTZ, which will itself be expanded after being branded a success
Chinese authorities approved on Tuesday the formation of three new free-trade zones in the city of Tianjin, southeastern Fujian province, and southern Guangdong province, the state news agency Xinhua reported.
The three new free-trade zones along China’s eastern coast, mooted for several months but now officially given the green light, will copy the model of the Shanghai FTZ established in 2013 as a testing ground for looser rules governing currency conversions and foreign direct investment, according to a post-meeting statement of the Communist Party Politburo yesterday.
The Shanghai FTZ is considered a success by the country’s leadership and will be expanded as well, according to state-owned China Central Television’s nightly broadcast on Tuesday.
Despite the green light from the top authorities, there is still no word on the four zones’ official launch dates, which have been repeatedly delayed.
In its proposal, Guangdong plans to focus on deepening economic integration with Hong Kong and Macau, to foster a business environment under the rule of law that matches international standards. The Guangdong zone will cover 116 sq km, taking in parts of Guangzhou’s Nansha New Area, Qianhai and Shekou in Shenzhen as well as Hengqin in Zhuhai.
Meanwhile, the free-trade zone in Fujian will focus on transactions between Taiwan and the mainland, while the free-trade zone in Tianjin will serve Beijing, Tianjin and Hebei province.