Free trade zone is a tariff free zone with a free port policy. It is the area where import duties or taxes on goods like raw materials are exempted. In the year 2013, the establishment of pilot FTZ in Shanghai was approved by the State Council. In the year 2014, three more free trade zones were set up among which were Tianjin, Guangdong and Fuijan.
These were established to expand the Shanghai FTZ scope of implementation. The successful testing of these free trade zones led to the confirmation and approval of these three FTZ. In order to deepen the reform, Guangzhou free trade zone was issued in 2015 located near Macau and Hong Kong.
Guangzhou free trade zone spans over an area of nearly 116.2 sq km. It integrates 3 existing bonded zones in 4 areas including:
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