Investment rules will be eased for three years in China’s new free trade zones (FTZs) in Tianjin and in Guangdong and Fujian provinces, Xinhua reported.
In these zones, foreign companies won’t need government approval to set up ventures, shut down and merge ventures or change their business purpose.
Instead, for three years from March, they will need only to report their business plans to the authorities.
The National People’s Congress Standing Committee voted Sunday for the preferential policy, which requires the temporary waiving of certain regulations that apply to foreign companies and Taiwan investors.
The NPCSC resolution also provided details of the three new FTZs, the establishment of which the State Council announced earlier this month.
The Guangdong FTZ, covering 116.2 square kilometers, will include zones in Guangzhou, Shenzhen and Zhuhai.
The Fujian FTZ, covering 118.04 sq km, will include industrial areas in Fuzhou and Xiamen, and Pingtan, a new industrial park targeting investment from Taiwan.
The Tianjin FTZ, covering 119.9 sq km, will consist of three sections around Tianjin Port, Tianjin Airport and the Binhai New Area industrial park.
An area of 91.94 sq km will also be added to the existing Shanghai FTZ.
Meanwhile Sunday, China’s first fund focusing on investment in the Shanghai FTZ was established.
The Shanghai Free Trade Zone Equity Investment Fund will raise 5 billion yuan (US$817 million), of which 1.5 billion yuan will be raised in the first phase, Xinhua said.
Four state-owned enterprises – Shanghai Lujiazui Finance and Trade Zone Development Co. Ltd., Shanghai Waigaoqiao (Group) Co. Ltd., China Cinda Asset Management Co. Ltd. and China Orient Asset Management Corporation — set up the fund.
Private and foreign firms have also invested in the fund, said Yang Xiaoming, chairman of Shanghai Lujiazui Finance and Trade Zone Development Co. Ltd.
It will focus on modern logistics and warehousing, commercial real estate, cross-border e-commerce, direct sales centers for imported goods, and a cultural product trading platform within the FTZ, Yang said.
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