China plans to set up more free trade zones. The State Council says it will launch trial zones in seven provinces, aiming to support the national strategy of the One Belt One Road connectivity initiative.
Officials say the seven new trial free trade zones will be established in China’s Liaoning, Zhejiang, Henan, Hubei, Sichuan, and Shaanxi provinces and in Chongqing city.
“The seven free trade zones will revolve around institutional innovation, and will have what the current free trade zones offer, as well as satisfying specific strategic needs locally. They will provide differentiated service, and push forward reforms and opening up,” said Gao Hucheng, Minister of Ministry of Commerce.
Gao said that the development of the current four free trade zones is showing positive results and the process should be accelerated.
“In terms of reform, the trial zones will enact for the first time a foreign investment negative list, and substantially reduce administrative approvals. In terms of opening up, foreign investment special administration items have been reduced from 190 in 2013 to 122 now. In terms of innovation, customs efficiency is raised by 40 percent as a result of streamlining administration and services,” Gao said
Official data shows that 90,000 businesses were set up across China’s four current FTZs in 2015. The data also shows that the businesses account for more than 50 percent of the total foreign investments in their local provinces and cities.