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Guangzhou Free Trade Zone

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Free trade area (Free Trade Zone, referred to as FTZ) refers to the relevant provisions on Trade and investment than the WTO more preferential trade arrangements; in other countries or regions of the sovereign territory, set aside a specific region to allow foreign goods exempted from tariff free access. It is essentially a tariff free zone with a free port policy. Narrow sense refers only to the areas where the import duties of goods such as raw materials for export are exempted from import duties, similar to export processing zones. The broad sense also includes free port and entrepot trade zone.

In September 27 2013, the State Council approved the establishment of China (Shanghai) pilot free trade zone. In December 26 2014, the Central Committee of the Communist Party of China and the State Council decided to set up three free trade zones in Guangdong, Tianjin and Fujian, and to expand the scope of implementation of the Shanghai free trade zone. In April 20 2015, the State Council approved the establishment of China (Guangdong) free trade zone, China (Tianjin) free trade zone, China(Fujian) 3 FTA test area of free trade, and expand the scope of Chinese (Shanghai) free trade zone.

To further deepen the reform and opening program of Free Trade Zone in China, Guangzhou Free Trade Zone (FTZ)was issued in the year of 2015. It is a free-trade zone near Hong Kong and Macau. The zone covers an area of 116.2 square kilometers and integrates three existing bonded zones in four areas — Nanshan New Area in Guangzhou (60 square kilometres), Qian Hai and Shekou Industrial Zone (Qianhai Shekou Subdistrict) in Shenzhen (28.2 square kilometres) and Hengqin Subdistrict in Zhuhai (28 square kilometres).

Guangzhou Free Trade Zone

Guangzhou FTZ's industry will focus on:

  • Development and transformation of scientific and technological achievements
  • International education and training
  • Financial services
  • Professional services
  • Business services
  • Leisure tourism and health services
  • Shipping and logistics services
  • Information technology industry

Guangzhou free trade zone is located in the southernmost part of the Guangzhou Nansha is big geographical geometry in the pearl river delta center, is the only channel to the sea, Guangzhou is also connected on both sides of the urban agglomeration of pearl river mouth important node and the hub of the south of China's opening to the portal. Nansha district waterway 38 miles from Hong Kong, is apart from the Macao 41 sea, scattered within 100 kilometres of Shenzhen, Foshan, Dongguan, Zhongshan, Zhuhai and the pearl river delta is the most developed city and two Hong Kong and Macao special administrative region shall, within a radius of 75 km of distribution in Guangzhou, Shenzhen, Zhuhai, Hong Kong, Macao and so on five big international airports, has huge development space and potential of radiation.

Guangzhou free trade zone of positioning is to transform it into a high level of opening to the outside Guangdong gateway hub, Nansha around gateway of positioning, to pushing forward the construction of the "three a city centre" Nansha has become a city high levels of internationalization and international shipping, trading and financial center, become the "deputy city center of Guangzhou, support and lead a new round of opening to the outside world in the province. Guangdong and Hong Kong will establish "Guangdong depth cooperation zone" in Nansha free trade zone, the industrial development will focus on research and development and transformation of scientific and technological achievements, the international education training, financial services, professional services, business services, leisure, tourism and health services, shipping, logistics services, information technology and so on eight big industry.

Bonded harbor area, the Nansha bonded port area planning a total area of 7.06 square kilometers, including a period to start operation area of 3.7 square kilometers, including harbor, logistics area, processing area, such as three functional areas, is to realize the closed management of areas under special customs supervision. Nansha bonded port area using its geographical geometry is located in the pearl river delta center, adjacent to Hong Kong and Macao, and have the advantage of a deepwater large dock, is committed to import goods warehouse distribution, distribution center, international sourcing and distribution center and supply chain management, international transit trade center and export consolidation center, build for the pearl river delta industrial transformation and upgrading, ports and logistics service platform. At present, the Nansha bonded port area has opened 48 domestic and foreign trade liner routes, 17 of the world's 20 largest liner companies have been stationed, and the container throughput reached 9.61 million in 2012.

Guangzhou is a cultural and scientific center in Southern China, with 39 universities, more than 200 vocational schools and more than 400 scientific research institutions. Guangzhou FTZ, more than 20 kilometers north of Guangzhou University City, now has 11 universities into the park, every year there are 40 thousand university graduates, for the development of Guangzhou and Nansha to provide adequate personnel support.

Taking the national hi tech Industrial Park, it takes park and Nansha science and technology innovation center as the carrier, Nansha sets up a superior public innovation platform to promote the growth of high-tech enterprises. The Chinese Academy of sciences research institutions in the district has system of the Chinese Academy of Sciences Guangzhou Industrial Technology Research Institute (Guangzhou Academy of Sciences China software application technology research institute, Guangzhou Academy of Sciences, Shenyang Institute of automation China branch, Guangzhou Academy of Sciences Chinese advanced technology research institute and South China Sea Institute of Oceanology are located in Nansha), in many scientific research institutions of Ministry of education, Guangzhou modern industrial technology research institute, Zhongshan University science and technology industrial base, the Henry Fok Institute and Hong Kong University Science & Technology postdoctoral workstation of various enterprises, R & D center, Zhongshan University, South China University of Technology, Guangdong University of Foreign Studies and a number of famous universities have been settled in Nansha to carry out cooperation.

At present, the member of Guangzhou FTZ has been the introduction of "houses", national "one thousand project" entries, innovative research team in Guangdong province and Guangzhou city "one hundred plan" chosen ones such as a number of senior personnel, medical, crystal electronics, founded the United States HuaSheng a batch of high and new technology such as electronic project. Guangzhou FTZ, meanwhile, is actively promote to Guangdong, Hong Kong and Macao to the characteristics of international cooperation and special talent cooperation demonstration zone construction, actively create a national reform experimental zone "talent management", form the special mechanism of the development of talent agglomeration.

Guangzhou FTZ Advantage Policy (Guangzhou Free Trade Zone Company Formation Regulations)
1. Fiscal policyAccording to the functional orientation and industry development direction of Guangzhou FTZ, the ministry of finance, taxation administration, and relevant departments will study and formulate the preferential taxation policies to support the development of Guangzhou FTZ.

2. Financial policy
  • Strengthen the financial cooperation between Guangdong, Hong Kong and Macao, and carry out the financial reform and innovation of the comprehensive management of the financial industry and foreign exchange management, so as to support the Guangzhou FTZ in the process of expanding the financial industry in the mainland and opening up to Hong Kong and Macao;
  • Support Hong Kong and Macao financial institutions in accordance with CEPA preferential measures and relevant laws and regulations, set up institutions and business in Guangzhou FTZ;
  • The state encourages and supports the establishment of new financial institutions in the Guangzhou FTZ to establish futures trading, credit insurance, finance lease and trust investment.
  • To allow qualified Hong Kong and Macao institutions to establish joint venture securities companies, joint venture securities investment consulting companies and joint venture fund management companies in Guangzhou FTZ;
  • Hong Kong and Macau insurance brokers are encouraged to set up sole proprietorship insurance agents in Guangzhou FTZ.

3. Policy of facilitating exchanges between Hong Kong and Macao
  • For Guangzhou FTZ residents in the area of investment, employment and the mainland residents to handle the relationship of Hong Kong and Macao pass and endorsement, study actively push for Guangzhou FTZ residents in the area of investment, employment and the mainland residents to handle the relationship of Hong Kong and Macao pass valid visa many times a year;
  • We will make it easier for foreign high-level talents to stay in the country, and make preferential policies such as relaxing the tax exemption for residence and the convenience of exchanges and visits.
  • Make the famous node of the world cruise ship travel route, facilitate the entry and exit of cruise ships and their carrying personnel;
  • We shall permit the registration of vessels belonging to vessels belonging to the shipping companies of Hong Kong and Macao and those belonging to non-local residences in the Guangzhou FTZ. When the conditions are ripe, explore new modes of customs clearance in Guangdong and Hong Kong and Macao;
  • To relax the import yacht policy in Guangzhou FTZ, pilot the yacht insurance system, and facilitate the entry and exit of yachts in Guangdong, Hong Kong, and Macao

4. Expanding the policy of opening to the outside world
  • To construct a demonstration zone for the cooperation of Guangdong and Hong Kong and Macao ports;
  • When the conditions are ripe, the branch management policy should be implemented in some areas of Guangzhou FTZ.
  • To simplify the entry and exit procedures of Nansha Hong Kong and Kwai Chung port of Hong Kong;
  • We will expand the port area of Guangzhou port to the Nansha port area and support the export business of the container terminal at the port of Guangzhou FTZ.
  • To construct a data service pilot area of Nansha (Guangdong and Hong Kong and Macao). We will allow pilots to carry out offshore data services in the Guangzhou FTZS.
  • Actively guide China's compulsory product certification (CCC) testing laboratory in Guangdong province to serve Hong Kong and Macao enterprises registered in the new zone;
  • We will increase the number of direct traffic indicators of Guangdong and Hong Kong and Macao

5. Land management policy
  • We will support the comprehensive pilot reform of land management reform in the Guangzhou FTZ;
  • In order to ensure the balance of the natural ecosystem, the necessary land for scientific development of Guangzhou FTZ shall be ensured;
  • We will carry out regular assessment of land use in the Guangzhou FTZ and pilot changes in time to improve the dynamic management of the planned implementation.
  • Guangzhou FTZ approved by the state council to adjust land use scale in decreasing arable land and basic farmland, must be carried out and filling of dynamic balance, ensure that land ownership and the protection of basic farmland area in Guangdong province does not reduce, quality has improved;
  • We will support the pilot projects for the approval and reform of construction land in the Guangzhou FTZ, and the pilot program will be submitted to the ministry of land and resources for approval.
  • Under the precondition of ensuring the safe and non-destructive water ecological environment of the estuary area, the scientific argument can be put into the water in accordance with the law

6. Marine management policy
  • We will strictly enforce the law on the use of sea areas, promote the market allocation process of the area's resources, improve the use of the use of the sea area, and explore the use of secondary markets for the use of the sea.
  • We will carry out environmental impact assessment work in accordance with the law, and strictly implement the reclamation plan for the protection, development, and construction of islands without destroying the functions of coastal zones, seas and Marine ecosystems. To tilt the sea reclamation plan for major projects;
  • Allow Guangzhou FTZ to conform to the Marine functional zoning and land use planning area in accordance with the relevant policies in accordance with the law to apply for the use of waters, optimization, according to the procedures to explore management with the sea and land, for the management of cohesion

7. Social cause and management service policy
  • Actively supporting the implementation of the national social management innovation comprehensive pilot in the Guangzhou FTZ;
  • Encourage and support the international education cooperation experiment in Guangzhou FTZ;
  • Allows for the construction of the Hong Kong and Macao regions, such as medical treatment service institutions and the practitioners, a certificate issued by the Hong Kong and Macao regions permission (authorization) authorities, in accordance with the mainland and Hong Kong and Macao on the provisions of the closer economic partnership arrangement after registration or license, carry out corresponding business in Guangzhou FTZ.

Over the past 30 years since the reform and opening up, China has become a hot land for global investment. Foreign companies pouring into, not only created a large number of employment and tax revenue, also promoted the economic development, industrial upgrading and technological progress, enterprises with foreign investment have become an important part of the national economy.

At present, the free trade zone is the most open area of our country, and it undertakes the task of opening up to the outside world first. Since 2013, the opening of the free trade pilot zone in Shanghai has opened the door wider for foreign investors. Negative lists are being pushed across the country. The Shanghai free trade zone and other pilot free trade zones have implemented a management model of negative lists. In accordance with the central government’s requirement, our entire opening to the outside world and the use of foreign capital are also carried out in a negative list mode, which is a kind of promotion and replication.

In April this year, China's new Liaoning and other seven free trade zones, 11 free trade zones, formed an open pattern of China's all-around system innovation in the east and west China. Then, the new free trade area of the foreign investment negative inventory, the version of the negative list also officially on July 28, the new catalogue of industries for guiding foreign investment, the restrictive measures to further reduce the article 30, highlights to encourage foreign investment in high-end manufacturing, intelligent manufacturing and green manufacturing of policy guidance.

Seven New FTZs Launched

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