On 12 December 2014, Premier Li Keqiang announced at an executive meeting of the State Council that China will launch three additional free trade zones (FTZs) modelled after the Shanghai FTZ, which was inaugurated in September 2013.
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”1″ ihc_mb_template=”2″ ]
Similar to the approach previously used to create the Shanghai FTZ, the State Council will integrate some existing customs bonded areas in three provinces, including Guangdong, Fujian and Tianjin, upgrading existing zones into three new FTZs.
While the new FTZs are likely to replicate much of the current policies of the Shanghai FTZ, the State Council indicated that new reforms with local characteristics would also be piloted in these new FTZs.
Each of the three provinces where new FTZs will be created have multiple special bonded zones currently in place. Some of these zones enjoy unique geographical advantages with respect to trade with Hong Kong, Macau and Taiwan.
New FTZs that leverage these natural advantages would be expected to increase this trade. We will continue to monitor these developments and provide updates as they become available.
[/ihc-hide-content]
Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mailing Danian Zhang (Shanghai) at: danian.zhang@bakermckenzie.com
