FTZs will propel high-level opening-up

In the first seven months of 2020, more than 3,300 new foreign-owned enterprises were registered in China's 18 free trade zones (FTZs) attracting more than 90 billion yuan ($13.53 billion) in actual foreign investment, with the export-import volume reaching 2.7 trillion yuan. These FTZs account for only 0.4 percent of China's land area but attract 16.8 percent of the country's total foreign investment, with their foreign trade volume being 13.5 percent of the country's total.

The release of the overall plan for the Beijing, Hunan and Anhui free trade zones on Sept 21 shows the Chinese government's resolve to explore independent, higher-level opening-up through the FTZs. During the 13th Five-Year Plan (2016-20) period, the number of FTZs in China increased from four to 21. The FTZs have more autonomous powers to deepen reform and thus promote higher-level opening-up and innovation, and enhance China's global competitiveness.

The successful experiences of the 18 operational FTZs in terms of reform, opening-up and innovation have been implemented nationwide. In the seven years since the first FTZ was established, 260 successful experiences of the FTZs have been replicated elsewhere to promote liberalization, facilitate trade and investment, encourage the financial sector to serve the real economy, transform government functions and inject vitality into the market. The FTZs have created an environment conducive to sharing the reform dividends, demonstrating the benefits of deepening reform and opening-up.