The General Plan of the Third Group of Free Trade Zone Is Expected To Be Announced Next Month Hopefully.
Source:China (Shanghai) Pilot Free Trade Zone  Date:02/16/2017  

Reporters learnt that led by Ministry of Commerce, Ministry of Land and Resources, Ministry of Housing and Urban-Rural Development and State Oceanic Administration,the general plan of the third group of China Pilot Free Trade Zone, is formulated by 7 provinces and cities and expected to be announced during the two sessions. The general plan contains two main parts. One is to determine the scope of the free trade zone area; the other one is to allow 7 provinces, in which the new free trade zones is located respectively, to formulate the specific general plans according to the unique advantages and demands.

the Specific Plans are Reported.

In last August, the Central Party and the State Council decide to establish 7 new free trade zones in Liaoning province, Zhejiang Province, Henan Province, Hubei Province, Chongqing City, Sichuan Province and Shaanxi Province. Reporters leant that 7 provinces has formulated the specific general plans of free trade zone, which are waiting for the approval by relevant departments, and will be announced after performing the approval process.

Gao Hucheng, the minister of commerce, have previously said that tenderly follows the core mission of institutional innovation, the 7 newly established free trade zones will be supported by the new zones and parks that are approved by State Council and docked to the higher international trade rules, in order to formulate the distinctive pilot pattern that focus differently and promote the comprehensively deepen reform and opening up.

Liaoning province builds the new engines of improving the general competitiveness of old industrial base in northeast and general opening up level. Zhejiang province mainly focuses on implement the Central Committee’s requirements of exploring the Zhoushan free trade harbor zone to promote the liberalization of the staple commodity trade and explore the elevating of allocation capability of staple commodity globally.Henan province focuses on building the modern comprehensive transportation junction at the service of the establishment of the Belt and Road.Hubei province mainly focuses on implement the Central Committee’s requirements of undertaking the industrial transfer orderly by central region of China, and play its demonstration role in the process of the rise of the central region strategy and the promotion of the construction of yangtze economic zone.Chongqing city mainly focuses on implement the Central Committee’s requirements of performing important function as the significant tactic pivot and joint point and reinforce the opening up of the gateway cities of the western region, in order to drive the deep implementation of the develop-the-west strategy.Sichuan procince mainly focuses on implement the Central Committee’s requirements of reinforce the opening up of the gateway cities of the western region and build up the strategic support belt of inland open, in order to build the inland open economic highland and realize the collaborative open with regions neighboring river, sea, and border. Shaanxi procince mainly focuses on implement the Central Committee’s requirements of the better leading function of the Belt and Road construction to the development of the west regions and reinforce the opening up of the gateway cities of the western region, to built up the new height of inland reform and opening up and explore the new cooperating patterns on economic cooperation and cultural exchanges between the inland regions and countries along the Belt and Road.

According to the opinions of industry insiders, the specific general plans of 7 provinces and cities will be established around aforementioned specific features and orientations, and will be containing the specific rules and institutional reform and innovation of establishment of the free trade zone.

“The institutional reform and innovation is especially worthy of attention.”said Bai Ming, the deputy director of Institute of the International Market of Academy of Ministry of Commerce, the process of scope expanding of the free trade zone would get harder as the time goes by so that it is important to improve the institutional reform and innovation and provide the market with more space. For example, the 7 newly established free trade zone can be connected with the 4 former ones to build up a national wide free trade zone network system, and try hard to form the uniform institutional arrangement, especially  the market institution and management institution.Meanwhile, compelete the institution of the joint conference of free trade zone leading group, and reinforce the experience exchanges among free trade zones.

Chen Yao, researcher from CASS, Institute of Industrial Economics, expressed that the dividend will be released by several institutional innovation and reform including the negative list. The 7 newly established free trade zones shall not only pay special attention to self positioning, but also connect themselves with the national strategies including the Belt and Road, and combine themselves with new normal of China economy, supply-side structural reform, overcapacity elimination and structural adjustment.

the Specific Region Begins to Unfold

During the news conference held by the Information Office of the State Council recently, Wang Shouwen, the deputy director of Ministry of Commerce said 7 provinces and cities shall choose the regions with the features of relatively good foundation of opening up, stronger regional advantages, better regulatory conditions so that the risks shall be prevented effectively while enlarging the opening. The Ministry of Commence will submitted to the approval after the regions are determined. 

The specific scope of newly established free trade zones can be seen from the 2017 government work report of 7 provinces and cities released recently.

Liaoning province submitted that Shenyang, Daliang and Yingkou shall reinforce the reform and innovation and play leading and exploratory roles.Accelerate the establishment of Dalian Jin Pu New Area and China-Germany (Shenyang) Equipment Manufacturing Industrial Park, and promote the development of Dalian Cross-border E-commerce Comprehensive Pilot Area.Promote the construction of Dandong Border Area Exploration and Opening-up Experimental Zone.  Hubei province submitted that the features of the areas, Wuhan, Xiangyang, Yichang, shall be enhanced according to the specific regional difference and make sure the national evaluation shall be passed. Accelerate the establishment of Airport Comprehensive Free Trade Zone of Wuhan New Port and Wuhan Multi-model Combined-Transport Customs supervision center. Chongqing city submitted that promoting the transformation and upgrading of Lianglu Cuntan Free Trade Harbor Zone and Xiyong Comprehensive Free Trade Zone. Promote the construction of Wanzhou Bounded Logistic Center and try to establish Jiangjin, Fuling Comprehensive Free Trade Zones, as well as a group of bounded logistic center. Shaanxi province submitted that accelarate the construction of the Airport comprehensive free trade zone and try to establish Baoji comprehensive free trade area. Establish the North-West International Cargo Airline. Sichuan province submitted that accelerate the construction of Qingbai River Railway Harbor and Chuannan Port-centered Industrial Parks to guide the port services and high-end manufacturing to gather into the free trade zone, as well as encourage enterprises to establish the operating centers in free trade zone.  Zhejiang province submitted that accelerate the opening up the big tunnel of opening up. Promote the planning and construction of Ningbo Mei Shan New Area and Yiwu International Trade Reform Pilot Area.Promote the construction of Chian (Ningbo) Cross-boarder E-commerce Comprehensive Pilot Area and build up the “internet silk road”. Henan province submitted that accelerate the construction of corss-border e-commerce comprehensive pilot area.  Accelerate the construction of airport comprehensive pilot area.  Accelerate the development of ports, and support eligible regions to apply and establish the functional ports and special customs supervisions.

According to the analysis of insider, the announcement of the general plan of the 3rd group free trade zones is expected to heat the investment on related theme sector. Sectors including trade, port, shipping logistics, real estate, finance, etc. shall benefit from it. Li Huiyong, the chief macroeconomic analyst of Shenwan Hongyuan Securities, said the announcement of the general plan of the 3rd group free trade zones ought to bring a positive flow on sectors related to the free trade zone. 

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