China will introduce pioneering integrated reforms at its pilot free trade zones to improve areas such as trade, investment, finance and cross-border data flows, government officials said on Wednesday.
Although China covered less than 0.4 percent of the country's territory, the 21 FTZs contributed more than 18 percent of its foreign direct investment and nearly 18 percent of the country's foreign trade value in 2022.
In the first half of this year, those figures increased to 18.4 percent and 18.6 percent, respectively.
As the negative list for foreign investment access in China's FTZs has already eliminated restrictions in the manufacturing sector, Sheng stressed that focus will now shift to expansion of openness in the services sector within the FTZs.
A negative list encompasses specific industries in which foreign investors are not allowed to operate. They can operate in areas not listed on the list.
To further prune the negative list, the Minister of Commerce said, the Ministry of Commerce will collaborate with relevant government branches to further prune the negative list for foreign investment access within the FTZs. It is planned to launch a negative list for cross-border trade in services, paving the way for nationwide expansion in the next stage.
In a statement, Sheng said, China's FTZs are currently in line with international standards in trade, investment, finance, shipping, talent and other areas, which have introduced numerous fundamental and groundbreaking reform and opening-up measures, leading to numerous landmark and pioneering institutional innovations.
In addition, 84,000 companies have registered in the China Pilot Free Trade Zone since its inception 10 years ago. The vast number is proof of the region's lively business climate, he said.
This was made possible by many institutional innovations that were first tried out there, according to information released by the Shanghai municipal government.
Of the 302 institutional innovations launched at the 21 FTZs across China, the Shanghai FTZ pioneered 145.
The Shanghai FTZ, launched on Sept 29, 2013, is the first of its kind in China and covers more than 240 square kilometers. In both 2014 and 2019, China's FTZs were expanded.
over the years, they have pioneered institutional innovations that contributed to a number of achievements like increased collaboration in promoting industrial growth, open and coordonnée development of specialized industries, and more effective resource allocation on a broader scale, said Yang Zhengwei, director-general of the Department of Pilot Free Trade Zones and Free Trade Ports of the Ministry of Commerce.
The FTZs engaged in research and development to promote a range of institutional innovations that encompasses the entire life-cycle management of businesses, from creation and changes to operations and exits.
The inventions have played a critical role in enhancing the nation's investment climate, Yang said.
In late September, Volvo Construction Equipment became the first company to engage in remanufacturing operations in China, thanks to the favorable policies rolled out by the Shanghai FTZ, said Chen Chaoping, the company's vice president.
When compared to a new product of the same kind, remanufactured products can save up to 60 percent in energy consumption and reduce emissions by as much as 80 percent, he said.
China's FTZs will continue to function as testing centers for novel trade and government policies, before they can be rolled out at a national level, said Chen Zhenchong, director-general of the Department of Free Trade Zones and Special Control Area.