It is China’s first time to set up pilot FTZ’s in border regions as Yunnan and Guangxi’s free trade zones were launched on Friday.
These two are among a batch of six new pilot FTZs located in Shandong, Jiangsu, Guangxi, Hebei, Yunnan and Heilongjiang. To date China’s pilot FTZs totals to 18 since the country started piloting in 3013 in Shanghai.
Guangxi and Yunnan have maintained close economic ties with neighboring countries for decades. Members of the Association of Southeast Asian Nations have been Guangxi’s largest foreign trade partner for 17 years in a row.
Kunming is covered by the pilot FTZ of Yunan, Honghe Hani and Yi Autonomous Prefecture which is closely located to neighboring Vietnam. Meanwhile Dehong Dai and Jingpo Autonomous Prefecture nears Myanmar’s borders. The said FTZ’s will develop modes of cross-border economic cooperation to establish China’s open front in Southeast Asia.
On the other hand, financial services, smart logistics, the digital economy, emerging manufacturing industries, port shipping logistics, international trade, components of new energy vehicles and cross-border tourism. will be in Guangxi’s FTZ agenda.
Yunnan International Trade Association’s Zhou Xining emphasized how the new pilot FTZ’s are conducive to cultivating new growth engines in the southwest region. Moreover it will boost the development of the western region and further strengthen China’s cooperation with South and Southeast Asian countries.
Ge Hongliang, researcher at the China-ASEAN Research Center at Guangxi University for Nationalities emphasized that a distinctive feature of the new round of development is balanced opening-up, which will be extended to the central and western regions.
An important transit route New International Land-Sea Trade Corridor is Guangxi’s Beibu Gulf which connects western China and Southeast Asia. Shipping routes link the gulf with over 200 global ports.
Indeed the pilot FTZs are a reflection of China’s policy of continuously expanding reform and opening-up. It proves conducive to continue stimulating the development potential of the border areas.
