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Breakthroughs in institutional innovations

By LIU ZHIHUA | China Daily | Updated: 2023-09-04 09:01
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Employees work on an automobile production line in Qingdao area of the China (Shandong) Pilot Free Trade Zone on Feb 23. LI ZIHENG/XINHUA

The forum itself was a testament to the importance that China places on pilot FTZs. The event's focus was on the development of pilot FTZs.The forum was jointly organized by the Chinese Academy of International Trade and Economic Cooperation, which is under the Ministry of Commerce, and the Department of Commerce of Henan Province, and the city government of Zhengzhou,indicating how agencies at multiple levels are involved in the task of strengthening pilot FTZs.

At the forum, Ma Chengfang,deputy director-general of the MOC's pilot FTZ and pilot FTP construction coordination department, said: "The pilot free trade zones play a crucial role in the implementation of the dual-circulation development pattern. We will thoroughly implement the strategy to upgrade pilot free trade zones to propel their high-quality development."

In the next step, pilot FTZs will focus on key areas - trade and investment, government procurement, intellectual property rights protection and environmental protection - to build institutional systems and supervision models,so as to be abreast with high-level international rules. The larger goal in this regard is to gather relevant experience for implementing path-breaking reforms in those areas, Ma said.

The pilot FTZs will also intensify efforts to increase openness in investment and trade in services.While keeping risks controllable,they will continue to shrink the negative list for foreign investment while expanding opening-up in trade in services. Pilot FTZs' negative list for cross-border services trade will be launched soon, he said.

Coordination on reforms among different government departments,regions, fields and industries will be enhanced, while accelerated institutional innovation will propel the development of a modern industrial system, and increase resilience and openness of industrial and supply chains, Ma said.

MOC data showed that pilot FTZs have pioneered an unprecedented degree of openness in relation to foreign investment and international trade in both goods and services over the last 10 years.

They have been instrumental in driving many institutional innovations covering investment, trade facilitation and financial openness.Why, 302 such innovations have been selected for replication at the national level.

Since 2022, pilot FTZs have effected 537 institutional innovations across investment, trade,finance and regulation. And 120 of them have promoted remarkable development in related areas,according to a report on the development of the pilot FTZs released at the Zhengzhou forum.

The negative list for foreign investment at the pilot FTZs now has only 27 items, as against 193 in the first version in 2013. Not a single item of the 27 is from the manufacturing sector.

Gu Xueming, president of CAITEC, said: "Pilot FTZs are expected to focus on key industries, given their edge in increasing openness and making institutional innovations throughout the industrial chains, which have helped foster world-leading clusters of industries."

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