2 Oct 2019
China (Liaoning) Pilot Free Trade Zone
Officially launched on 1 April 2017, the Liaoning Pilot Free Trade Zone (FTZ) forms part of a third batch of government-endorsed pilot FTZs. All told, it covers an area of 119.89 sq km and consists of three sub-zones: The Dalian Area (59.96 sq km inclusive of the Dalian Bonded Area (1.25 sq km), the Dalian Export Processing Area (2.95 sq km) and the Dalian Dayaowan Bonded Port (6.88 sq km)), the Shenyang Area (29.97 sq km) and the Yingkou Area (29.96 sq km).
In line with the Overall Plan for the China (Liaoning) Pilot FTZ (see Chinese version), as approved by the State Council, over the next three to five years, the Liaoning FTZ will establish a system for institutional innovation in accordance with the best international investment and trade practices, while also nurturing a facilitative and conducive, legally-compliant, globally-minded business environment. It will also look to enhance its competitiveness in terms of manpower and capital, while constructing a high-level free trade park and nurturing a cluster of high-end industries. Additionally, investment and trade facilitation are to be prioritised alongside the provision of robust financial services and effective and sustainable oversight. Overall, it will play a lead role in transforming the northeastern region’s economic growth model, while enhancing its general economic development.
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
With a specialisation in port and shipping logistics, the site will also focus on finance/trade, high-tech equipment manufacturing, high and new technology, and the circular economy. Additionally, it will take a lead role in the construction of the Northeast Asia International Shipping and Logistics Centre, while providing a platform for wider co-operation across Northeast Asia.
The site will primarily focus on the advanced manufacturing sector, particularly with regard to equipment, automobiles/automotive parts and aeronautical equipment. In terms of the services sector, the emphasis will be on finance, technology and logistics. Overall, there will be a drive to establish the area as a model for contemporary industrialisation and as the technological innovation centre of northeastern China, while also developing a globally-competitive base for the manufacture of cutting-edge equipment.
Developing a high standard of professional services in the fields of commercial logistics, cross-border e-commerce and finance will be the key element of the region’s remit. Its activities will also extend to next-generation information technology and high-end equipment manufacturing. The ultimate aim is that Yingkou will serve as an international logistics facility for the wider region, while also operating as high-end equipment manufacturing and high technology industrial centre. It will also be home to an internationally-oriented multimodal sea-rail transport hub.
Policy and Regulatory Updates
For the latest information, please consult the following websites:
Shenyang Area of China (Liaoning) Pilot Free Trade Zone (Chinese only)
Yingkou Area of China (Liaoning) Pilot Free Trade Zone (Chinese only)
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