Latest News:  


Tianjin, Xiamen also plan to set up FTZs

By Sun Li in Xiamen and Wei Tian in Beijing  (China Daily)

13:24, July 12, 2013

After Shanghai became the first city allowed by the State Council to build a free trade zone last week, other cities are ready to follow suit.

Tianjin filed its proposal to the central government, while the city government of Xiamen, Fujian province, is collecting documents to submit to the State Council for approval.

While Tianjin's plan might be approved in a month by the State Council, according to a 21st Century Business Herald report on Wednesday, Xiamen's plan is still being drafted, and no details about the time frame or the zone have been decided yet, said an official surnamed Xu with the Xiamen investment promotion bureau.

The Xiamen project has resulted from a proposal to the Xiamen city government submitted in March by Gong Xiaowei, an economist with the Economic Research Institute of the Xiamen Development and Reform Commission.

Gong - a scholar who has been keen on the subject of free trade zones for years - said that Xiamen, as a special economic zone which always played a pioneering role in financial reform, is well-positioned to become a comprehensive FTZ facilitating trade, investment, offshore financial services and cross-Straits economic cooperation.

Since Xiamen already has some duty-free areas and an export-processing zone, a solid foundation has been laid to develop an FTZ in the city, Gong said.

According to Gong's proposal, the FTZ, which would be established on a trial basis, would comprise six separate bonded zones under the special administration of customs, including the Haicang duty-free area, the Xiangyu duty-free area, the Xiamen export-processing zone and the Xiamen Torch (Xiang'an) bonded logistics center.

The Xiamen FTZ would stand out from other zones, given its ability to promote cross-Straits ties, Gong said.

When the project is completed, financial cooperation and convenience between the mainland and Taiwan would be enhanced, Gong added.

Sun Lijian, deputy dean of the school of economics at Fudan University in Shanghai, said that it is desirable that China develops more FTZs.

"There are 15 major free trade zones in the United States, so we could have much more in China as well," he said.

Sun said that he strongly objects to the fever of building financial centers, which require massive resources and are highly overlapping, but that free trade zones focus on providing more convenience to businesses, and thus could stir up their comparative advantages.

"There will be no cut-throat competition, it's up to each area to decide how to make the best use of their rights," he said.

Shanghai, a hub for multinational companies, could try to lure in more overseas capital, Tianjin could rely on its easy access to Beijing and other inland provinces, while Xiamen has close trade links with Taiwan and overseas Chinese people, he said.

However, Sun also warned of potential risks. Loosening controls on the capital account within the zones could result in arbitrage funds.

"We don't know yet whether free trade zones would bring more benefits to the real economy or to the virtual economy, so we need to push forward the expansion gradually and do this in a low-key manner," he said.

We Recommend:

How did Chinese solar industry go bankrupt?

Born to lead: 2nd gen of Chinese tycoons

Chinese graduates’ unconventional jobs

China's largest railway terminal officially opens

Dazzling gems shine at Beijing jewelry show

Boeing 787 Dreamliner to serve Beijing-Haikou route

New high-speed rail linking Nanjing, Ningbo opens

Jiaxing-Shaoxing Sea Bridge in E China

Chinese investors' happiness and sadness

Email|Print|Comments(Editor:WangXin、Chen Lidan)

Leave your comment0 comments

  1. Name


Selections for you

  1. Chinese, Russian naval forces in drill

  2. Naval joint exercise to be normalized

  3. Muslims buy food to break daytime fast

  4. Cute twin sisters popular on the Internet

  5. Death toll rises to 18 in SW China landslide

  6. Rainstorms flood more than 10,000 cars

  7. Weekly sports photos: Bikini enchantment

  8. Ilhabela Sailing Week 2013 kicks off

  9. 2013 China Int'l Boat Show kicks off

  10. A decade for home mortgage slaves

Most Popular


  1. RMB becomes more market-oriented: official
  2. High hopes for high-tech export reform
  3. China's automobile organization slams car limits
  4. Shortage of teachers hurts kindergartens
  5. Building on past successes
  6. Inflow of 'hot money' tackled, expert says
  7. Caution urged in seeking experts from abroad
  8. China didn't cause German solar firms' bankruptcy
  9. China, U.S. discuss cyber security
  10. Why are we obsessed with selfies?

What’s happening in China

China's Chongqing issues orange-coded alert of heat

  1. Books on dating become a hit 24 years later
  2. Now a smartphone app for free contraceptives
  3. Gang rape suspect gets new lawyers
  4. Life expectancy for Beijing residents increases
  5. Tourists cool off on beach in Shanghai