China (Shanghai) Pilot FTZ Expanded: New Free Trade Zones and Pilot Reform Measures announced
Business Regulation and Tax Newsflash
Issue 16 - 18 December 2014
December 2014, China’s State Council announced the following initiatives:
- To further reduce the number of items in the "Negative List" that are applicable to foreign-invested entities engaging in business in the China (Shanghai) Pilot free trade zone (FTZ). The Negative List sets out the industries and activities for which foreign investment is restricted or prohibited. More restrictions will be lifted in the service and high-end manufacturing sectors, and certain relaxations will be extended to the entire Pudong New Area of Shanghai;
- To establish three new FTZs in Guangdong, Tianjin and Fujian, based on the existing special zones in these areas. The rules in the new FTZs are expected to be similar to the rules in the China (Shanghai) Pilot FTZ, but also may contain some pilot aspects that reflect the features of the respective region; and
- To roll out nationwide 28 pilot measures on investment, trading, finance and the opening up of service sectors, as well as six pilot measures applicable to Customs and inspections/quarantines in special Customs areas.
It generally is anticipated the new FTZs in Guangdong and Fujian will be aimed at promoting economic cooperation between the Mainland and Hong Kong, Macau and Taiwan; and that the new FTZ in Tianjin will focus on key industries, such as high-end manufacturing, financial services, and logistics and transportation.
The government has not yet announced when the initiatives will be launched.
Please follow the link for a copy of the press release of the relevant State Council meeting (in Chinese only). You may also access the relevant information and regulations about the Pilot FTZ via Deloitte's dedicated portal page.