8 Oct 2019
China (Guangxi) Pilot Free Trade Zone
The China (Guangxi) Pilot Free Trade Zone (GXFTZ) is one of six such pilot zones designated by the State Council in its Circular on Issuing the Overall Plan for the Six New Pilot Free Trade Zones (See Chinese version) in August 2019. The GXFTZ consists of three areas totalling 119.99 sq km: the Nanning Area (46.8 sq km, including the 2.37-sq km Nanning comprehensive bonded zone), the Qinzhou Port Area (58.19 sq km, including the 8.81-sq km Qinzhou bonded port area) and the Chongzuo Area (15 sq km, including the 1.01-sq km Pingxiang comprehensive bonded zone).
The GXFTZ is geared towards fostering institutional innovation and the accumulation of replicable and scalable experience. It will help to achieve the central government’s goal of creating ‘support nodes’ as it looks to advance the opening up of southwestern and central-south regions of the country. Leveraging the unique advantages Guangxi possesses in its road and sea links with ASEAN countries, the zone will provide sea outlets for the southwestern, central-south and northwestern regions, as well as a new international land-sea trade corridor targeting the ASEAN region. The GXFTZ will become an important gateway for the 21st Century Maritime Silk Road and the Silk Road Economic Belt.
Over the next three to five years, the GXFTZ will embark on institutional innovations in line with advanced international standards, in a bid to boost quality, efficiency and competitiveness in its economic development. Resources will be put into creating a world-class free trade zone that facilitates China-ASEAN co-operation through implementing trade- and investment-friendly policies, maintains a comprehensive financial services sector, demonstrates safe and efficient oversight and wields significant influence on neighbouring areas.
Foreign Investment Management
The Special Administrative Measures (Negative List) on Foreign Investment Access (See Chinese version), issued by the National Development and Reform Commission, set out unified special management measures governing issues such as equity ratios and senior management personnel of businesses operating in FTZs in China. For industry sectors falling outside the scope of the negative list, the principle of foreign and domestic investors receiving the same treatment will apply.
Special administrative measures relating to national security, public order, public culture, financial prudence, government procurement, subsidies, special procedures and tax-related matters not on the negative list remain subject to existing provisions. Foreign investment concerning national security is subject to review in accordance with the Tentative Measures for the National Security Review of Foreign Investment in Free Trade Zones (See Chinese version).
Positioning of Sub-zones
Covering an area of 46.8 sq km, this sub-zone will be dedicated to the development of modern service sectors such as financing, intelligent logistics, the digital economy, culture and media. It will also be positioned to foster new manufacturing industries, act as an open, ASEAN-facing financing gateway, and serve as a crucial link in the new international land-sea trade corridor.
Qinzhou Port Area
This site covers an area of 58.19 sq km, and its development priorities include industries such as port logistics, international trade, ‘green’ chemicals, components for new-energy cars, electronic information and biomedicine. The goal is to establish the Qinzhou Port Area as a gateway for the international land-sea trade corridor and a coastal economic cluster zone.
With an area of 15 sq km, this sub-zone will be focused on developing cross-border trade, cross-border logistics, cross-border financing, cross-border tourism and cross-border labour service co-operation. It will be set up as a demonstration zone for cross-border industrial co-operation and a gateway for the new international land-sea trade corridor.
Latest Policies and Regulations
Please refer to the official websites of:
China (Guangxi) Free Trade Pilot Zone Nanning Area (Chinese only)
China (Guangxi) Free Trade Pilot Zone Qinzhou Port Area (Chinese only)
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