A Guide to China's Free Trade Zones

The speed of change in China has continued at breakneck pace over the past year. At the

beginning of 2015, three new Free Trade Zones (FTZs) had been announced in the country.

As 2016 gets underway, FTZs in Tianjin, Guangdong and Fujian have all become fully

operational, and the already existing Shanghai FTZ has been greatly expanded.

With Shanghai the nation’s de facto financial center and Guangdong, Tianjin and Fujian key

manufacturing, shipping and trading hubs, China’s FTZs have understandably caught the

attention of foreign investors seeking to enter a more liberalized Chinese market. The new

zones provide fresh and unique opportunities at a time when China is facing ever greater

competition from some of its neighbors, and form part of the government’s goal to spur

investment outside of the well-established Yangtze River Delta region.

In this issue of China Briefing magazine, we examine China’s four Free Trade Zones and

discuss the differences and strongpoints that exist in each of them. We begin by providing

an introduction to the FTZs, and then take an in-depth look at the market access conditions,

registration procedures and tax environments of each. Finally, we highlight some of the key

considerations that foreign companies should be aware of when choosing an FTZ to invest in.

Regardless of whether you’re an SME seeking to outsource manufacturing costs, a financial

leasing company, or a retailer looking to sell to the Chinese market, the FTZs offer incentives

that can benefit you. With our experience of setting up companies in each, Dezan Shira &

Associates can be your guide to investing in China’s Free Trade Zones.

This Month’s Cover Art

Huang Youwei

Oil on canvas, 75x120 CM

Wan Fung Art Gallery

wanfung@12

.cn

+86 0760 8333 861

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Introduction