China (Fujian) Pilot Free Trade Zone
25 September 2019
The State Council approved the establishment of the China (Fujian) Pilot Free Trade Zone (FJFTZ or Fujian FTZ) at an executive meeting held on 12 December 2014. Officially launched on 21 April 2015, the Fujian FTZ covers a total area of 118.04 sq km and consists of three areas: Pingtan Area (43 sq km), Xiamen Area (43.78 sq km, including the 0.6-sq km Xiangyu Bonded Zone, 0.7-sq km Xiangyu Bonded Logistics Park and 9.51-sq km Haicang Bonded Port), and Fuzhou Area (31.26 sq km, including the 0.6-sq km Fuzhou Bonded Zone, 1.14-sq km Fuzhou Export Processing Zone and 9.26-sq km Fuzhou Bonded Port).
According to the Overall Plan for the China (Fujian) Pilot Free Trade Zone (see Chinese version) approved by the State Council, the Fujian FTZ will give full play to the Taiwan advantages, adopt innovative cross-Strait cooperation mechanism, promote free-flowing of goods, services, capital and personnel and enhance the economic connection of Fujian and Taiwan. At the same time, it will also fully leverage the advantages of being the frontline of opening up, accelerate the formation of a new pattern of opening-up at higher level and expand in depth and breadth exchanges and cooperation with countries and regions along the 21st Century Maritime Silk Road. After three to five years of reform, the aim is to build a free trade zone with investment and trade facilitation, prominent financial innovation features, sound service and legal system, and convenient and efficient supervision.
Foreign Investment Management
The Special Administrative Measures (Negative List) on Foreign Investment Access (See Chinese version), issued by the National Development and Reform Commission, set out unified special management measures governing issues such as equity ratios and senior management personnel of businesses operating in FTZs in China. For industry sectors falling outside the scope of the negative list, the principle of foreign and domestic investors receiving the same treatment will apply.
Special administrative measures relating to national security, public order, public culture, financial prudence, government procurement, subsidies, special procedures and tax-related matters not on the negative list remain subject to existing provisions. Foreign investment concerning national security is subject to review in accordance with the Tentative Measures for the National Security Review of Foreign Investment in Free Trade Zones (See Chinese version).
Positioning of Sub-zones
With an area of 31.26 sq km, the Fuzhou Area of Fujian FTZ comprises two zones: Fuzhou Economic and Technological Development Zone and Fuzhou Bonded Port Area. The two are further divided into six sub-zones, known as “two zones, six sub-zones”.
The Fuzhou Economic and Technological Development Zone has an area of 22 sq km and is divided into four sub-zones: namely Majiang-Kuai’an, Chang’an, Langqi and Nantai Island. The zone also houses two special customs supervision areas: Fuzhou Free Trade Zone (0.6 sq km) and Fuzhou Export Processing Zone (1.14 sq km).
The Fuzhou Bonded Port Area has an area of 9.26 sq km and is divided into two sub-zones: Zone A borders the west port (or Xigang) to the east, Xinjiang Highway to the south, Jinqi Road to the west and Weiliu Road to the north; Zone B borders berth No. 14 to the east, Xinghua Road to the South, the mudflat (or Tantu) to the west and Xinglin Road to the north.
The Fuzhou Area will be turned into an experimental ground for reform and innovation with the creation of an international, market-oriented business environment with sound legal system, revolving around the strategic requirements of gaining a foothold across the straits, serving the country and keeping abreast with the world. As pioneer in reform, it will take the lead in promoting investment and trade with Taiwan and give full play to the advantages of being a provincial capital city, with proximity to Taiwan and the ocean, and focusing on the construction of an advanced manufacturing base, important platform for the 21st Century Maritime Silk Road and demonstration zone for cooperation in cross-Strait service trade and financial innovation.
Covering an area of 43 sq km, the Pingtan Area of Fujian FTZ will focus on boosting ties with Taiwan and attracting foreign tourists to the island. It will implement more liberal measures to facilitate investment and trade, capital and personnel exchanges. Pingtan Area consists of three functional zones:
Port economic and trade zone (16 sq km). The zone’s positioning: accelerating the construction of port logistics cluster, business services cluster, and electronics industry cluster; focusing on the development of international trade, modern logistics, business services, and electronic information equipment manufacturing; and building cross-Strait free trade demonstration area, regional comprehensive bonded industries demonstration zone and the cross-Strait electronics industry integrated development cluster; and gradually expanding into an international free port.
New- and high-tech industrial zone (15 sq km). The zone’s positioning: exploring cross-Strait cooperation in building high-tech industrial bases; connecting the Pingtan high-speed rail hub with the central business district and science, technology, culture and education districts; accelerating the construction of R&D headquarters cluster, marine industry cluster, high-end light manufacturing industry cluster; giving full play to policy advantages of place of origin; focusing on the development of marine life, medical equipment, packaging materials and light equipment manufacturing and other high-tech industries; and promoting cross-Strait in-depth cooperation in high-tech industries.
Tourism and business zone (12 sq km). The zone’s positioning: being a window to Taiwan, the zone will give full play to the tourism resources including fine beaches, headlands and sand dunes, linking the international tourism development of the city centre and Pingtan, focusing on connecting Taiwan tourism and tourist services, accelerating the construction of coastal tourist enclave, cross-Strait tourism business cluster, agricultural and fishing products processing industry cluster to enhance service standards of international tourism, focusing on the development of coastal resort, sports tourism, leisure and wellness, tourist shopping and other tourism products, extending and expanding the high-end sector of tourism, striving to create an international coastal resort island, international maritime cultural and sports base, international tourism and leisure destination, and gradually expanding into an international tourist island.
The Xiamen Area of Fujian FTZ which comprises the cross-Strait trade centre core zone and the southeast region international shipping centre Haicang port area, is a unique pilot FTZ in China featuring joint development of land and sea ports, airports and cruise homeports.
The cross-Strait trade centre core zone covers an area of 19.37 sq km (including the 0.6-sq km Xiangyu Bonded Zone and 0.7-sq km Xiangyu Bonded Logistics Park). The positioning of the zone is the development of new- and high-tech R&D, information consumption, airport-based industries, international trade related services, financial services, professional services, cruise economy and other emerging industries and high-end services as well as building the cross-Strait economic and trade cooperation region to become a regional centre for international trade facing the Asia-Pacific region with foothold in the mainland.
The southeast region international shipping centre Haicang port area covers an area of 24.41 sq km (including the 9.51-sq km Haicang Bonded Port). The positioning of the port area is the development of modernised port-based industries such as shipping and logistics, import and export, bonded logistics, value-added processing, service outsourcing, commodities trading, and the building of an efficient and convenient, green and low-carbon shipping logistics network service system to become an important container hub port of the Asia-Pacific region based in Haixi with global shipping resources capacity facing the world, providing service across the Straits.
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