Three new pilot free trade zones in China

On September 21, the State Council unveiled an overall plan to establish three new pilot free trade zones in Beijing, and Hunan and Anhui Provinces, and to expand the China (Zhejiang) Pilot Free Trade Zone. The Hunan pilot free trade zone was approved. Covering an area of 119.76 square meters, it will become a new "landmark" and "pilot area" of reform and opening up.

Establishing pilot free trade zones is an important strategic measure of the CPC Central Committee with Comrade Xi Jinping at its core to advance reform and opening up in the new era. Approving the Hunan Pilot Free Trade Zone is a significant decision by the CPC Central Committee at a crucial moment when China has made considerable progress in preventing and controlling the pandemic, boosting economic and social development, and accelerating fostering a new, dual-cycle development architecture with domestic and international development reinforcing each other. 

According to the Overall Plan for the China (Hunan) Pilot Free Trade Zone, the zone’s strategic positioning and development goals are to:

-have institutional innovation as the core, and to be emulated and popularized as the basic requirements;

-Fully implement CPC Central Committee requirement regarding accelerated building of manufacturing power and the implementation of the "Rise of central China" strategy;

-Give full play to Hunan's geographical advantages as a transitional zone from China’s eastern coast to its center and west, and the joint zone between the Yangtze River Economic Belt and the coastal economic belt; and,

-Build a cluster of world-class advanced manufacturing industries, an international investment, trade corridor linking the Yangtze River Economic Belt and Guangdong-Hong Kong-Macao Greater Bay Area, a pilot zone for in-depth China-Africa economic and trade cooperation, and a new highland for opening-up in inland China.

First of all, let's understand what a free trade zone is：

Free trade area means that the member states that sign the free trade agreement completely cancel the tariff and quantity restriction in the commodity trade, so that the goods can flow freely among the member states. However, the member states still maintain their own restrictions on imports from non member countries. 

The China (Hunan) Pilot Free Trade Zone including:

Changsha focuses on "Belt and Road" construction and highlights its airport economy, high-end equipment manufacturing development, new-generation information technology, biomedicine, e-commerce, agricultural technology, and other industries. It aims to grow into a world-class advanced equipment manufacturing base, a high-end modern inland area service industry center, a pilot area for deepening economic and trade cooperation with Africa, and a new growth pole in central China.

Yueyang will implement the Yangtze River Economic Belt development strategy, to develop port economy, shipping logistics, e-commerce, new-generation information technology, and other industries. It aims to build itself into a comprehensive shipping logistics center in the middle reaches of the Yangtze River and an inland port economic demonstration zone.

Chenzhou gives priority to Guangdong-Hong Kong-Macao Greater Bay Area construction, and highlights the direct connection between Hunan, Hong Kong, and Macao. It is primarily involved in developing non-ferrous metal processing, modern logistics, and other industries. It aims to become an important inland platform to undertake industrial transfer and transformation and upgrading of processing trade, and a demonstration zone for cooperation between Hunan, Guangdong, Hong Kong, and Macao.

The establishment of Hunan free trade zone will focus on building a closer community of shared destiny between China and Africa. Through the construction of a distribution and processing center for African resource-based products in China, a public service platform for China Africa economic and trade cooperation, and a series of reform experiments to enhance the ability of financial services to Africa, further improve the new mechanism of economic and trade cooperation with Africa and open up a new growth point of China Africa economic and trade cooperation.Changsha Jiarong Agricultural Technology Co., Ltd. focuses on education and trade services between China and Africa, and has rich experience. We welcome all African friends to consult and cooperate.