Page 90 - 2017 White Paper
P. 90
7 White Paper on the Business Environment in China
One year after the launch, as the Wall Street Journal trade zone in Shanghai. The plan received a boost when
reports: “The removal of the project’s leader on the Third Plenum expressed general support for opening
September 15 marked the latest setback for the free- additional free trade zones in China (Tiezzi 2013).
trade zone” (Shen 2014).
In June 2014, however, the government suspended the
The seeming lack of clarity and glacial pace of reform approval of any further Free Trade Zones (FTZ) following a
in Shanghai has not deterred Guangdong, which is wave of proposals imitating the Shanghai FTZ, according
attempting financial experiments with Shenzhen’s to Xinhua. While Premier Li Keqiang had previously
Qianhai area, and is seeking a new zone which, local announced that pilot projects would commence in
media speculate, may be even more ambitious than several areas, these have been indefinitely stalled based
Shanghai’s – possibly linking to Hong Kong and Macau. on a flood of unsatisfactory applications (China Briefing
And Guangdong isn’t the only place waiting in line. 2014). It was reported that local governments wanted to
Wuhan, Tianjin and even Ningxia, are also contemplating secure licensing for such zones solely as means to secure
zone possibilities (Kazer, Geng and Li 2013). funding for land redevelopment (Ibid.).
According to recent news reports, the State Council The ban affected some 20 cities believed to have
has asked the Ministry of Commerce (MOFCOM) to give submitted applications for FTZs. Included is the
Tianjin and Guangdong assistance in drawing up their Guangdong Free Trade Zone, which had already received
free trade zone framework designs. Chengdu of Sichuan, approval yet has now been caught up in the blanket ban
Hefei of Anhui, Yinchuan of Ningxia and Shenyang of (China Briefing 2014). Faced with downward pressure
Liaoning have also started to draw up proposals for their on GDP growth, many of these places have once again
own free trade zones (Hong KongTrade and Development resumed their free trade zone planning. Premier Li
Council Research 2014). Keqiang has said “China would sum up the experience of
the Shanghai Free Trade Zone at an appropriate time and
Guangzhou announced the scope of its proposed promote the replicable experience to other parts of the
Free-Trade Zone (FTZ) plan in its unified Guangdong- country” (Hong Kong Trade and Development Council
Hong Kong-Macau FTZ application. In September Research 2014).
2014, Guangzhou Mayor Chen Jianhua revealed that
in the application submitted to the State Council, two In January 2014, Xinhua had erroneously reported
areas totaling 15.2 square kilometers were added to that the Ministry of Commerce (MOFCOM) had granted
the proposed FTZ. These are the 7.8 square kilometer approval to twelve further Free Trade Zones. Later this
Nansha Bonded Zone, to the south of the city, and the was revised in light of a MOFCOM announcement that no
7.4 square kilometer Baiyun Airport Economic Zone, further FTZs had yet received approval, though a number
which lies in the north. The former includes a port, while of applications were subject to ongoing review, including
the latter features Guangzhou’s international airport (Liu zones in Guangdong and Tianjin (China Briefing 2014).
2014). The Guangzhou FTZ lists logistics, manufacturing,
land development and finance as its key industries. By late June 2014, the overall plan for the proposed
Although other parts of the Nansha New Area and the Guangdong free trade zone was back on track, having
South Railway Station area have not been included, undergone two rounds of consultation with the relevant
Guangzhou’s contribution to the entire Guangdong- ministries and commissions. The proposed Guangdong
Hong Kong-Macao FTZ is larger than many had originally FTZ will cover four areas, namely, the Nansha New Area
predicted (Hong Kong Trade and Development Council Bonded Zone, Qianhai New Area, Hengqin New Area and
Research 2014). Guangzhou Baiyun Airport Comprehensive Bonded Zone
(Liu 2014).
Earlier, in November 2013, Governor Zhu Xiaodan
had declared Guangdong’s hopes to become the home Qianhai in Shenzhen is one of more than 10 newly
of China’s next free trade zone. The proposed Pearl River created or proposed special zones. Six years from now, the
Delta Free Trade Zone would encompass the special New York Times reports that Shenzhen officials envision,
administrative regions of Hong Kong and Macao as well as Qianhai will be a thriving, international finance district
parts of the cities of Shenzhen, Zhuhai, and Guangzhou, in Shenzhen to rival Manhattan, the city of London or
making it potentially much larger than the current free Hong Kong, with a working population of 650,000 people
90
One year after the launch, as the Wall Street Journal trade zone in Shanghai. The plan received a boost when
reports: “The removal of the project’s leader on the Third Plenum expressed general support for opening
September 15 marked the latest setback for the free- additional free trade zones in China (Tiezzi 2013).
trade zone” (Shen 2014).
In June 2014, however, the government suspended the
The seeming lack of clarity and glacial pace of reform approval of any further Free Trade Zones (FTZ) following a
in Shanghai has not deterred Guangdong, which is wave of proposals imitating the Shanghai FTZ, according
attempting financial experiments with Shenzhen’s to Xinhua. While Premier Li Keqiang had previously
Qianhai area, and is seeking a new zone which, local announced that pilot projects would commence in
media speculate, may be even more ambitious than several areas, these have been indefinitely stalled based
Shanghai’s – possibly linking to Hong Kong and Macau. on a flood of unsatisfactory applications (China Briefing
And Guangdong isn’t the only place waiting in line. 2014). It was reported that local governments wanted to
Wuhan, Tianjin and even Ningxia, are also contemplating secure licensing for such zones solely as means to secure
zone possibilities (Kazer, Geng and Li 2013). funding for land redevelopment (Ibid.).
According to recent news reports, the State Council The ban affected some 20 cities believed to have
has asked the Ministry of Commerce (MOFCOM) to give submitted applications for FTZs. Included is the
Tianjin and Guangdong assistance in drawing up their Guangdong Free Trade Zone, which had already received
free trade zone framework designs. Chengdu of Sichuan, approval yet has now been caught up in the blanket ban
Hefei of Anhui, Yinchuan of Ningxia and Shenyang of (China Briefing 2014). Faced with downward pressure
Liaoning have also started to draw up proposals for their on GDP growth, many of these places have once again
own free trade zones (Hong KongTrade and Development resumed their free trade zone planning. Premier Li
Council Research 2014). Keqiang has said “China would sum up the experience of
the Shanghai Free Trade Zone at an appropriate time and
Guangzhou announced the scope of its proposed promote the replicable experience to other parts of the
Free-Trade Zone (FTZ) plan in its unified Guangdong- country” (Hong Kong Trade and Development Council
Hong Kong-Macau FTZ application. In September Research 2014).
2014, Guangzhou Mayor Chen Jianhua revealed that
in the application submitted to the State Council, two In January 2014, Xinhua had erroneously reported
areas totaling 15.2 square kilometers were added to that the Ministry of Commerce (MOFCOM) had granted
the proposed FTZ. These are the 7.8 square kilometer approval to twelve further Free Trade Zones. Later this
Nansha Bonded Zone, to the south of the city, and the was revised in light of a MOFCOM announcement that no
7.4 square kilometer Baiyun Airport Economic Zone, further FTZs had yet received approval, though a number
which lies in the north. The former includes a port, while of applications were subject to ongoing review, including
the latter features Guangzhou’s international airport (Liu zones in Guangdong and Tianjin (China Briefing 2014).
2014). The Guangzhou FTZ lists logistics, manufacturing,
land development and finance as its key industries. By late June 2014, the overall plan for the proposed
Although other parts of the Nansha New Area and the Guangdong free trade zone was back on track, having
South Railway Station area have not been included, undergone two rounds of consultation with the relevant
Guangzhou’s contribution to the entire Guangdong- ministries and commissions. The proposed Guangdong
Hong Kong-Macao FTZ is larger than many had originally FTZ will cover four areas, namely, the Nansha New Area
predicted (Hong Kong Trade and Development Council Bonded Zone, Qianhai New Area, Hengqin New Area and
Research 2014). Guangzhou Baiyun Airport Comprehensive Bonded Zone
(Liu 2014).
Earlier, in November 2013, Governor Zhu Xiaodan
had declared Guangdong’s hopes to become the home Qianhai in Shenzhen is one of more than 10 newly
of China’s next free trade zone. The proposed Pearl River created or proposed special zones. Six years from now, the
Delta Free Trade Zone would encompass the special New York Times reports that Shenzhen officials envision,
administrative regions of Hong Kong and Macao as well as Qianhai will be a thriving, international finance district
parts of the cities of Shenzhen, Zhuhai, and Guangzhou, in Shenzhen to rival Manhattan, the city of London or
making it potentially much larger than the current free Hong Kong, with a working population of 650,000 people
90
