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Provinces pin high hopes on FTZs

China Daily | Updated: 2017-02-03 09:41

Tianjin looks to boost aerospace investment

By ZHANG MIN in Tianjin

Provinces pin high hopes on FTZs

The entrance to the Tianjin Airport Area, one of the three areas of the Tianjin Pilot Free Trade Zone. [Photo/Xinhua]

The China (Tianjin) Pilot Free Trade Zone, set up in April 2015, connects the Bohai Economic Rim and the countries involved in the Belt and Road Initiative.

Tianjin has a long history of manufacturing industry. The airport economic area of the Tianjin FTZ, which has been focusing on boosting value-added manufacturing, had generated 18.25 billion yuan ($2.66 billion) in the aerospace industry in the first half of 2016 with an increase of 13.6 percent year-on-year.

"As an international airplane maintainer, our sales rose by 20 percent thanks to the policy reforms that allowed us to bring extra parts out of the country without paying the extra tax as we used to," said Liu Jie, general manager of Goodrich Aerostructures Service (China) Co Ltd, a subsidiary of UTC Aerospace Systems.

"The airport economic area of the Tianjin FTZ will build China's first aerospace economic industry chain, including assembly, manufacturing, maintenance, logistics, finance and training.

The value of the aerospace manufacturing output will reach 74 billion yuan and the revenue of the aerospace service industry is expected at 37 billion yuan in 2017," said Liu.

Due to exposure to low-cost financing, financial leasing has been boosted in Tianjin. China's first privately owned financial leasing company was registered in the Tianjin FTZ.

Tianjin Bohai Leasing Co Ltd, a subsidiary of Bohai Capital Holdings, has recently completed three overseas projects with a total investment of nearly $1.6 billion, including the acquisition of NYSE-listed company Avolon Holdings Ltd.

Tianjin is one of China's busiest ports.

After 16 years in import business, Yang Zhenjiang, general manager of Storch Trading (Tianjin) Co Ltd, opened his first store in Global Go, selling German snacks and beverages and other items.

He said the Tianjin free trade zone is more like an imported goods gathering area instead of an area for free trade.

Despite paying zero rent and serious promotions in the Global Go, he said there aren't many innovative policies on tax and logistics.

Yang said: "I still find the FTZ promising. When the conditions get better, I may turn my retail store into wholesale."

Liu Enzhuan, a member of the drafting team of the China (Tianjin) Pilot Free Trade Zone, said: "The way to a better future for the Tianjin FTZ lies in nurturing a healthy environment for the market economy."

"Eventually, all the reforms should serve one goal-to solve practical problems for companies," said Liu.

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