Special Economic Zones and Free Trade Zones
Special Economic Zones (SEZ) is a Chinese government economic policy introduced in 2013 to boost foreign direct investment. These zones were created to promote international trading. The first SEZ established in Shanghai in 2013, followed by Guangdong, Tianjin, and Fujian in 2015.
Free Trade Zones are special areas where goods can be brought in, processed, and exported without needing approval from the local customs authorities. Customs duties are only required when the goods are sold within the province where the zone is located.
Companies registered (location of registered address) within the boundaries of these FTZ enjoy:
- Lower corporate tax rates
- Import tax exemption until goods are moved out of the FTZ (out of the warehouse)
- Free currency exchange rate (no fees for converting major currencies)
- A fast and streamlined customs clearance.
- A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
- A faster VAT refund
Currently there are 21 FTZs (Free trade zone) in China
Zhejiang Free Trade Zone
The Zhejiang Free Trade Zone is a region in the eastern coastal area of China. It was established in 2016 to promote economic reforms, enhance the openness of the economy, and encourage international trade and investment in the area.
This zone offers great opportunities for businesses and investors looking to explore the Chinese market and expand globally. It has advantageous location, well-developed infrastructure, and advanced manufacturing industries. The Zone serves as a gateway to the Belt and Road Initiative. It provides a platform for cross-border e-commerce, international logistics, and financial services.
Thanks to its favorable policies and business-friendly environment, the Zhejiang Free Trade Zone has become an attractive destination for foreign investments in China.
Currently, the four areas in Zhejiang FTZ are tasked with different development goals.
Zhoushan area has been forming a complete industrial chain for the oil and gas industry. Ningbo area focuses on the development of oil and gas, new materials, international shipping, global supply chains, foreign trade and intelligent manufacturing.
Hangzhou area has been accelerating the development of the digital economy. Jinhua-Yiwu area has been building up a new international trade center.
Hangzhou area of Zhejiang FTZ
The Hangzhou area is aims become a nationally-leading pilot development zone for new-generation artificial intelligence (AI) technologies, a national-level fin-tech innovative development pilot zone, and a world-class cross-border e-commerce demonstration center. Currently there are 3 sections of Hangzhou area: Qiantang, Xiaoshan and Bingjiang.
The Qiantang section focuses on such industries as cross-border e-commerce, digital trade, bonded trade and services, life science, intelligent manufacturing, and research and testing.
The Xiaoshan section emphasizes the development of scientific innovation and finance, intelligent manufacturing, headquarters economy, airline logistics and services, life science, and cross-border e-commerce.
The Binjiang section focuses on fields such as internet of things, digital economy, financial technology, AI, and digital recognition technology for security and protection.
