China is gradually expanding its system of free-trade zones. Three new free-trade zones have been added, where the economy will find business-friendly conditions that are largely aligned with the liberal principles of the market economy.
The three new free-trade zones:
- The Tianjin Free-Trade Zone is the first of its kind, where financing leasing plays an important role. However, the focus of attention is on economic promotion and infrastructural expansion in northern China. For this purpose, there is also a special public-private partnership model. The Tianjin FTZ is primarily directed at service companies (trade, financing, logistics), as well as at companies with high-end production in the fields of aerospace, machinery, IT, R&D, and design.
- The Guangdong Free-Trade Zone is primarily designed to promote trade with Hong Kong and Macao and is mainly directed at companies in the fields of IT, high tech, transport and logistics, finance, tourism, and culture.
- The Fujian Free-Trade Zone is the first FTZ to introduce a “one-form application” process for simplified company formation, and it is considered to be an important building block in the relaunching of the Maritime Silk Road and an emerging location for the development of innovative new business models.
The Shanghai Free-Trade Zone has been expanded by 121 km2 (inclusion of the Lujiazui Financial District). The free-trade zone now has simplified rules for foreign investments by companies located in the FTZ. Moreover, companies are no longer required to register minimum capital.