China pushes for trade, investment facilitation in FTZs
China rolled out a slew of measures to boost trade and investment facilitation, and to deepen reform and innovation in pilot free trade zones (FTZs). The measures can be classified into 5 categories.
1. Trade facilitation
China will support regions with pilot FTZs in nurturing innovation demonstration areas for import facilitation, help FTZs develop off-shore trade, promote enterprises in FTZs to carry out bonded repairs based on product catalog used in comprehensive bonded areas, allow eligible FTZs to import specified drugs and medical devices via cross-border e-commerce retail.
2. Investment facilitation
China will delegate approval powers to FTZs for permitting Hong Kong and Macao service providers to set up travel agencies.
Legitimate ship inspection institutions from overseas will be allowed to conduct legal inspections on internationally registered ships in pilot FTZs.
Pilot FTZs will supply land by industrial chains, covering key links and core projects.
3. More accessible international traffic
Foreign airlines can carry passengers and freight from the Chinese city with FTZs to a third country, under the fifth freedom traffic right.
China will spearhead the reform of using 'single certificate' for multimodal transportation, and offer incentives to apply and standardize it.
China will study and introduce policies for financing with railway transport documents.
The government grants province-level authorities with pilot FTZs under their administration power over some shipping management items in Ship Operation Transport Certificate.
4. More convenient financial services for real economy
China will launch new futures such as shipping futures, attract foreign traders in futures trading, and improve regulatory policies for bonded futures delivery.
China will pilot a bank account system unifying domestic and foreign currencies and practice for financial leasing companies to bring in foreign debt more efficiently in FTZs, and explore securitization of intellectual property assets in eligible FTZs.
5. Judicial support for trade and investment facilitation
China will explore using multimodal transportation documents as document of title and accumulate experience in judicial practice to support related legislation.
China will also improve judicial examination of arbitration by clarifying any applicable law involved in awards rendered by arbitration agencies established in pilot FTZs by foreign arbitration institutions.