Shenzhen is considered to be an economic center of trade and business in China, and has also been designated as an international city by the State Council. It’s no secret that Shenzhen has been able to rank ahead of all the large and medium sized cities in China, in terms of export volume for the past 23 consecutive years, which is quite an accomplishment. The Shenzhen Free Trade Zone has been catering to Fortune Global 500 companies along with 196 branches of foreign brands that operate from within the Shenzhen Free Trade Zone. These businesses belong to various industries such as;
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Science and Technology Service Industry
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Realty industry
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Modern Logistics
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Information Service Industry
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Imported vehicles
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Cultural Creative Industry
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Cross-border E-commerce
Shenzhen Free Trade Zone
The Shenzhen Free Trade Zone is located close to Hong Kong, Macao, Guangzhou, Zhuhai, Dongguan, Zhongshan city. This unique geographical location of the Shenzhen Free Trade Zone has been one of the leading factors for the incredible success that the Shenzhen Free Trade Zone has achieved in recent years. Apart from the air, sea and land transport resources, international brands also get to take advantage of the Shenzhen airport, Hong Kong and Shenzhen airport cargo port located in the west and western regional gathering deep rapid rail, Guan City Line. Other transport links to the Shenzhen Free Trade Zone include links to Hong Kong and the Pearl River Delta Cities, which all help in establishing Shenzhen’s geographical prowess, especially when it comes to international trade.
There was a time when Shenzhen had to rely on Hong Kong and mainland China when it came to doing trade with the world, but with a new round of infrastructure and development projects, Shenzhen is embracing international trade and investment by providing foreign brands with the infrastructure and services they need for doing business in China. The main difference was brought about when China decided to make it easier for establishing business in the Shenzhen Free Trade Zone.
During the past 5 years, major inroads have been made in the Shenzhen region, to accommodate foreign companies that are willing to go through the Shenzhen Free Trade Zone Process to do business in China. The country has also improved its transport and infrastructure in leaps and bounds to help accommodate the surge of foreign business to the Shenzhen Free Trade Zone and other parts of China.
As a new round of trade and investment from international brands is opening up China is looking to establish new rules and in establishing a new system of the open economy known as the "experimental field." This is a major difference from its previous position to rely solely on Hong Kong and mainland China to do trade with international businesses. The Chinese government has taken major steps to improve the Shenzhen Free Trade Zone area by making massive institutional improvements, including, deep port cooperation, industrial agglomeration, and the construction of new cities. All this has led to a total economy reaching hundreds of billions of energy levels and still continues to go higher. According to the latest data, Qianhai has transformed into the fastest growing and most profitable areas in China, which is another reason why many international companies have made the decision to setting up business in Shenzhen Free Trade Zone.
By the end of 2016, there were 42,000 companies in Qianhai, up 139 times from 2012. The added value of registered enterprises was 92.65 billion yuan, up nearly 19 times from 2013. Tax revenue was 18.49 billion yuan, up 35.6 times from 2013. The actual use of foreign capital is us $3.8 billion, up 238 times from 2012. Fixed-asset investment rose to 29.75 billion yuan, up 15.4 times. In 2016, the number of newly registered enterprises in the former sea, the newly registered capital and the contract utilization of foreign capital account for 38.4%, 50% and 40.9% respectively of the free trade area in the whole country. Apart from these amazing figures, the actual utilization of foreign capital accounted for 24.4%.
Since the past few years, the pace of development and in foreign companies setting up business in Shenzhen Free Trade Zone has been further accelerated. In the first three quarters of last year, 34,548 new Shenzhen Free Trade Zone Company Registrations were registered in the former Haikou area, which brought in new registered capital of 214.19.07 billion yuan. This is up 1.7% year on year, and is looking to grow even further in the coming years.
Foreign enterprises who completed setting up business in Shenzhen Free Trade Zone achieved tax revenue of 26.0.89 billion yuan, an increase of 20.8% year on year. The actual utilization of foreign investment was $36.22 billion, which is also up by 30.7%. In the first half of the previous year, the added value of registered enterprises in the area was 931.52 billion yuan, up 55.4%. In general, the economic development of Qianhai has been characterized by fast speed, strong momentum, excellent quality, strong concentration and strong strength. It has grown into an important economic growth pole in Guangdong and Hong Kong and Macao.
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