Economic and Trade zones in China

In recent years, China’s central and provincial governments have created several special zones that offer various benefits to companies operating within them. These include foreign trading zones, trade development zones, and special economic zones.

The benefits offered by these different special trade and economic zones could be an important factor to consider when  choosing where to locate your business in China. Depending on the nature of the zone/region, foreign businesses receive various administrative and trade incentives such as easier licensing processes, tax concessions and advanced infrastructure to encourage the establishment of businesses and industries. There can also be advantages relating to trade barriers, tariffs, quotas and bureaucratic requirements. Labour laws and regulations as well as employment contract rules may also vary between special economic zones.

When researching where to set up operations in China, Australian businesses should check with their state trade office to see if their state or city has a relationship with a special trade zone in China (such as a sister city arrangement).

One of the special zones that could be of particular interest to Australian businesses is the Shanghai Free Trade Zone (SFTZ), which was launched in September 2013. This zone is listed in the China Australia Free Trade Agreement (ChAFTA) as a key area for innovative and liberalised Australia-China cooperation. It is in an area where the Chinese Government is trialling policies and regulations that encourage administrative innovation, as well as stimulating trade and investment with plans to expand these regulations across China.

Measures being trialled within the Shanghai FTZ, such as liberalised regulations, simplified business registrations processes and taxation benefits, have the potential to significantly open up the services sector to foreign investors. Critics have complained of slow progress, but this has not deterred a significant number of local and foreign enterprises establishing in the zone in the anticipation of more favourable policies in the future. An area of specific advantage for Australian businesses in the Shanghai FTZ will be legal services. Under ChAFTA, Australian firms located in the Shanghai FTZ will be allowed to offer Australian, Chinese and international legal services through a commercial presence, without restrictions on the location of clients.

Based on the model of the Shanghai FTZ, three more FTZs were opened in China in April 2015. These were set up in Tianjin city, Guangdong province and Fujian province. Each is to make full use of its geographic location and carry special local features. 

Fujian Province

Fuzhou

  • Fuzhou Free Trade Zone
  • Fuzhou Economic and Technological Development Zone
  • Fuzhou Taiwan Investment Zone
  • Fuzhou High-Tech Industrial Development Zone
  • Fuzhou Export Processing Zone

Xiamen

  • Xiamen Special Economic Zone
  • Xiamen Export Processing Zone
  • Xiamen Haicang Taiwanese Investment Zone
  • Xinglin Taiwan Merchants Development Zone
  • Torch Hi-Tech Industrial Development Zone
  • Xiamen Xiangyu Free Trade Zone

Guangzhou

  • Guangzhou Economic and Technological Development Zone
  • Guangzhou Nansha Export Processing Zone

Shantou

  • Shantou Special Economic Zone
  • Shantou Free Trade Zone

Shenzhen

  • Shenzhen Special Economic Zone
  • Shenzhen Hi-Tech Industrial Park

Zhanjiang

  • Zhanjiang Economic and Technological Development Zone

Zhuhai

  • Zhuhai Free Trade Zone
  • Zhuhai High-Tech Industrial Development Zone

Guangxi Province

Beihai

  • Guangxi Beibu Gulf Economic Zone
  • Beihai Export Processing Zone

Hainan Province

Haikou

  • Haikou Free Trade Zone
  • Hainan Special Economic Zone

Hebei Province

Qihuangdo

  • Qihuangdo Economic and Technology Development Zone

Jiangsu Province

Lianyungang

  • Liangyungang Economic and Technological Development Zone
  • Liangyungang Export Processing Zone

Nantong

  • Nantong Economic and Technological Development Area
  • Nantong Export Processing Zone

Liaoning Province

Dalian

  • Dalian Free Trade Zone
  • Dalian Export Processing Zone
  • Dalian Economic and Technological Development Area
  • Dalian Changxing Island Port Industrial Zone
  • Dayao Bay Bonded Port Area

Shandong Province

Qingdao

  • Qingdao Special Economic and Technological Development Area
  • Qingdao Free Trade Zone
  • Qingdao High-tech Industrial Zone
  • Qingdao University Industrial Zone

Yantai

  • Yantai Economic and Technological Development Zone
  • Yantai Export Processing Zone

Shanghai Municipality

  • Shanghai (China) Pilot Free-Trade Zone

Tianjin Municipality

  • Binhai Special Economic Zone
  • Tianjin Economic and Technological Development Area
  • Tianjin Port Free Trade Zone
  • Tianjin Export Processing Zone
  • Tianjin Airport International Logistics Zone

Xinjiang Uyghur Autonomous Region

Kashgar

  • Kashgar Special Economic Zone

Zhejiang Province

Ningbo

  • Ningbo Economic and Technological Development Zone
  • Ningbo Daxie Development Zone
  • Ningbo National Hi-Tech Industrial Development Zone
  • Ningbo Free Trade Zone

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