The era of free trade port will approach, the mainland free trade zone upgrade with these three pass firstly

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With the pattern of opening up to the outside world going deeper, the “free trade port era” with greater autonomy in reform is on the horizon.

In general, it is mentioned that most of the “free trade ports” are related to seaports. For example, foreign seaports in Singapore, Hong Kong and Shanghai and other coastal port cities in China, as international or regional shipping centers, have the same conditions as “free trade ports” The requirements are closer.

Under current conditions, there are few references to the aviation ports or inland ports (inland railways) relying on the Pilot Free Trade Area of ​​the Mainland.

Experts from a number of FTAs ​​in China also indicated that the construction of a free trade port needs to be gradual and orderly, with pilot projects in the coastal areas first, and too far ahead for inland free trade zones.

Pilot by the coastal areas first, do not represent the inland areas can only wait and see.

In the upcoming “free trade port” era, the key to the development and upgrading of inland free trade pilot areas is where? The answer was found in the China Free Trade Area Report (www.freeportchina) at the just-concluded Free Trade Zone Innovation and Development (Xi’an) Summit.

One of the keys
Proportion of foreign investment

The third batch of free trade zone opened more than six months, many free trade zones are drying out in the near future six months of transcripts. There are differences, but there are commonalities.

For example, in Shaanxi Free Trade Zone, as of October 13, 6114 new registered enterprises were newly added with a registered capital of 185.66 billion yuan, of which 70 were foreign-funded enterprises with a registered capital of 364 million U.S. dollars (at current exchange rate of 6.64, ).

Again, Henan Free Trade Zone, as of October 23, 13234 new registered companies, the new registered capital of 174.547 billion yuan, of which 63 foreign-funded enterprises, the registered capital of 905 million U.S. dollars (in accordance with the current exchange rate of 6.64, 6.06092 billion yuan).

Another example is the Sichuan Free Trade Zone, as of the end of October, a total of 16944 registered enterprises, the new registered capital of 240.8 billion yuan.

Free Trade Junjun did not find the official release of foreign-funded enterprises in Sichuan Free Trade Zone data, but the Chengdu area, as of the end of October, a total of 14899 registered companies, the new registered capital of 229.991 billion yuan, of which 155 foreign-funded enterprises, Registered capital of 1.036 billion yuan.

Free trade juniper simple conversion of the above data, Shaanxi FTA new foreign-funded enterprises accounted for 1.14% of the total number of new enterprises, foreign registered capital of 1.30% of the total registered capital; Henan FTA new foreign-funded enterprises accounted for total new 0.47% increase in the number of enterprises, foreign registered capital of 3.44% of the total registered capital; Sichuan Free Trade Zone in Chengdu Area, the new foreign-funded enterprises accounted for 1.04% of the total number of enterprises, foreign registered capital of 0.46% of the total registered capital.

As can be seen from the open data, foreign investment in the above three free trade zones located in the inland area is not active.

At the summit of innovation and development in Xi’an Free Trade Zone (Xi’an), Zhao Xiaolei, dean of the Free Trade Zone Research Institute of Shanghai University of Finance and Economics,

The most important function of the pilot free trade zone is to serve as a window to the outside world and should be open to foreign investment and facing the international community. Evaluation of the work of free trade area, not only depends on how many times the total registered capital of enterprises increased, but also depends on how much foreign investment in the newly registered or new investment.

Compared with the previous data released by Shanghai FTA, in the first half of 2017, the total amount of foreign investment in Shanghai FTA accounted for 90% of Pudong New Area. According to the previous Ministry of Commerce released authoritative data, the end of April 2016, Shanghai Free Trade Zone has a total of 35,000 newly established enterprises, of which more than 5,500 new foreign-funded enterprises, the newly established foreign-funded enterprises, the average registered capital of nearly 2 times the domestic-funded enterprises.

Although the previous accumulation and innate advantages are also important reasons, there is a long way to go in terms of the new inland free trade zone in the face of such a large gap.
The era of free trade port will approach, the mainland free trade zone upgrade with these three pass firstly

The second key
Import and export trade volume

Active import and export trade is a free trade zone can be truly worthy of the fundamental.

However, because of the conditions of transportation and the basis of economic development, the import and export trade volume of many inland free trade zones is not large.

For example, the total value of imports and exports of Shaanxi in the first three quarters of 2017 totaled 195.64 billion yuan, up 35.7% over the same period of last year. Higher than the national growth rate of 19.1 percentage points. The total value of exports was 117.17 billion yuan, an increase of 55.9% over the same period of last year. While seeing the rapid growth of import and export volume, we can see that the volume of import and export trade in Shaanxi Province at this stage is not large.

Zhai Kun, Professor of International Relations, Peking University, advocated in the Free Trade Zone Innovation and Development (Xi’an) Summit. Similar to the inland free trade zone of Shaanxi Free Trade Zone, it is necessary to find out the characteristics of the region, take full advantage of the policy advantages and build “Belt and Road Food Gateway.”

The Great Belt and Road Initiative proposed that Shaanxi Free Trade Zone (especially the Central Area and the Port Area) should make full use of the advantages of the dry ports and the Belt and Road. For example, wheat imported from Kazakhstan is transported over land routes to Xi’an and then (by Xi’an) nodes by rail to other parts of the country.

It is not just wheat that can link up Europe, Central Asia, Russia, China and Southeast Asia if the “Belt and Road Great Passage” is opened. Rice in Southeast Asia and southern China can also be transported to Central Asia as nodes in Xi’an And Europe.

The third key
Business environment

In essence, the poor business environment and the weak awareness of service enterprises are basically the common problems of all underdeveloped provinces inland economy.

A friend who stayed in Beijing after graduating from a university told Zima Jun that he did not want to start a business in his hometown. It is just too difficult for his hometown business to do anything.

Friends frankly, registered in Beijing, opening, tax payment, the annual inspection is very smooth, corporate compliance with the law, in accordance with the process go basically no obstacles. In places, when investment is very warm, cheap land also promised tax cuts, but to the corporate certificate, the annual inspection or the relevant departments to come forward, a circle down to spend money not to say, too tired!

This is true for domestic enterprises, foreign-funded enterprises that are not familiar with China’s national conditions must have even more worries.

In order to solve the problem, in recent years, many cities in the Mainland have launched a business environment reform initiative. In Xi’an, for example, the first question is responsible for the internal circulation, the deadline conclusion, and “one run at a time” and other institutional provisions have been quickly implemented. In order to improve the efficiency of work, many municipalities in Shaanxi have also set up administrative approval bureaus, and the business environment has indeed been greatly improved.

At the summit, Gao Junjie, a partner of Pricewaterhouse Coopers Innovation Services, also emphasized the business environment in the FTZ, drawing on the successful experiences of Singapore, Shanghai and other places in China.

Shanghai Free Trade Zone is worth learning from other free trade zones, there are four experiences: First, through its own industrial base to find a breakthrough. The second is to closely follow trade to create its own policy. The third is based on the needs of enterprises as a guide, through the solution to the problems of enterprises to higher-level industries and headquarters functions introduced to the region. Fourth, the continuous accumulation of personnel in the government agencies in the region, focus on personnel to do major work mechanism.

When it comes to Singapore, Gao Junjie introduced the setup of its highly efficient government department. That is, the investment promotion department of the Singapore government will set up departmental agencies according to industries and countries. Facilitate the corresponding government departments to better understand their services to businesses and industries. Pay more attention to the business environment without emphasizing the investment environment, after the project landed to better serve the business, to honor the commitment when investment.

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