8 Oct 2019
China (Jiangsu) Pilot Free Trade Zone
The China (Jiangsu) Pilot Free Trade Zone (JSFTZ) is one of six such pilot zones designated by the State Council in its Circular on Issuing the Circular on Issuing the Overall Plan for the Six New Pilot Free Trade Zones (See Chinese version) in August 2019. The JSFTZ consists of three areas totalling 119.97 sq km: the Nanjing Area (39.55 sq km), the Suzhou Area (60.15 sq km, including the 5.28-sq km Suzhou comprehensive bonded zone in Suzhou Industrial Park) and the Lianyungang Area (20.27 sq km, including the 2.44-sq km Lianyungang comprehensive bonded zone).
The JSFTZ is geared towards fostering institutional innovation and the accumulation of replicable and scalable experience. It will help to achieve the central government’s goals of deepening industrial restructuring and pressing ahead with an innovation-led growth strategy. The zone will drive further economic opening up on all fronts, establish itself as a hub under the Belt and Road Initiative (BRI), and function as a demonstration zone for economic innovation and industrial transformation and upgrade.
Over the next three to five years, the JSFTZ 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 trade and investment, encourages clustering of high-end, high-tech industries, 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 39.55 sq km, plans for this site include a pilot proprietary innovation demonstration zone that commands global influence and a modern industry demonstration zone. Nanjing is expected to become a major platform for opening-up and co-operation.
With an area of 60.15 sq km, the Suzhou sub-zone will be home to a new, world-class high-tech industrial park. The area will provide a new focus for driving innovation with an international dimension, developing high-end industries, implementing modern management systems, and for economic opening up on all fronts.
This sub-zone covers an area of 20.27 sq km. It will be the site of a major new Asia-Europe transport hub, and function as an open gateway for quality economic activities. An exchange and collaboration platform for countries (and territories) along the BRI routes will also be set up.
Latest Policies and Regulations
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