25 Sept 2019
China (Tianjin) Pilot Free Trade Zone
The State Council approved the establishment of the China (Tianjin) Pilot Free Trade Zone (TJFTZ or Tianjin FTZ) at an executive meeting held on 12 December 2014. Officially launched on 21 April 2015, the Tianjin FTZ consists of three areas totalling 119.9 sq km: Tianjin Port Dongjiang Area (30 sq km, including the 10-sq km Dongjiang Bonded Port Area), Tianjin Airport Area (41.3 sq km, including the 1-sq km airport area of Tianjin port free trade zone and the 1.96-sq km Binhai New Area integrated free trade zone), and Binhai CBD Area (46.8 sq km, including the seaport area of Tianjin port free trade zone and the 4-sq km Bonded Logistics Park).
According to the Overall Plan for the China (Tianjin) Pilot Free Trade Zone (see Chinese version) approved by the State Council, Tianjin FTZ is being vigorously positioned as a high-level open platform for the coordinated development of the Beijing-Tianjin-Hebei region, a pilot zone for reform and opening-up as well as test field for institutional innovation throughout the country. With reform experiments planned for the next three to five years, the TJFTZ is set to be built into a world-class, top-rate free trade zone featuring unrestricted trade, facilitated investment, clusters of high-end industries, quality financial services, sound legal environment, efficient and effective regulation, as well as significant radiating and stimulating effects. The TJFTZ will play an exemplary role in the coordinated development of the Beijing-Tianjin-Hebei region and the economic transformation and development in China.
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
Tianjin Port Dongjiang Area
The port of Tianjin lies at the junction of the Beijing-Tianjin city cluster and the Bohai Rim economic circle. As the nearest Chinese port over land to Europe and Central and West Asia, Tianjin is also the hub linking Northeast Asia with Central and West Asia. Located at the northeastern part of Tianjin FTZ, the Dongjiang Bonded Port Area consists of three major areas, namely a terminal operation area, a logistics processing area and a comprehensive service area. These areas serve “five major functions”, ranging from container terminal port handling, container logistics processing, commercial trading, to living and accommodation as well as leisure and tourism. The focus of these areas is geared towards developing the modern service industries of freight logistics, international trade and financial leasing.
Tianjin Airport Area
The Tianjin Airport Area of TJFTZ consists of the Tianjin Port Free Trade Zone and the Tianjin Airport Economic Area. The latter aims to build itself into an eco-friendly, modernised industrial park along the lines of internationalised, people-centric and ecologically balanced development. The Tianjin Airport Area encompasses “one city and three parks”, referring to a modernised new city area together with a technology park, an industrial park and a logistics park. The new city area aims to attract a cluster of corporate headquarters, with large commercial complexes, public facilities and residential developments. The technology park for research and development focuses on developing telecommunications, biological, optoelectrical and service outsourcing industries, as well as advanced manufacturing industries. The industrial park for new and high technology specialises in developing civil aviation, new energy and new materials industries, while the modern logistics park capitalises on the Airport Free Trade Zone and Binhai International Airport to develop the airport-based logistics industry. The Tianjin Airport Area of TJFTZ will focus on developing high-end manufacturing industries such as aviation and aerospace, equipment manufacturing, new-generation information technology, as well as production services such as R&D design and aviation logistics.
Binhai CBD Area
The Binhai Central Business District (CBD) Area is one of the seven functional areas of the Binhai New Area. The Binhai CBD Area straddles both banks of Hai River’s lower reaches, and forms the overall layout of “one river, two banks and six areas”. The six areas are namely: Xiangluowan Business District, Yujiapu Financial District, Tianjian Commercial District (in Jiefang Road), New Port District, Dagu Livable New Area and Blue Whale Island Tagu Forts Area. The CBD is the core area of the Tianjin FTZ. By building and innovating five distinctive industry groups, namely the headquarters economy, financial services, technology and new-generation information technology, cross-border e-commerce, as well as the cultural, media and creative industries, the Binhai CBD Area aims to achieve its overall development targets in 15 to 20 years and become the leading showcase of China’s financial innovation, as well as the core zone of the Binhai New Area.
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