Category Archives: China

SW China city to build second airport

SW China city to build second airport
STOCKHOLM, June 3 (Greenpost) — The southwestern Chinese city of Chengdu is to build a second airport to meet the growing air travel demand.

   Construction is likely to start by the end of this year, said Zhou Laizhen, deputy director of the Civil Aviation Administration of China (CAAC), on Thursday.
Chengdu will be the third Chinese city, after Beijing and Shanghai, with two airports.
Pan Gangjun, president of Sichuan Airport Group, said passenger throughput in Chengdu will reach 62 million in 2020, in excess of 50 million capacity of the current airport.
The new airport will be located in Jianyang, 50 km southeast of downtown Chengdu. The cost is estimated at 69.2 billion yuan (11.2 billion U.S. dollars).
The new airport will have three runways, a 600,000 square meter terminal and 157 aircraft stands. It is expected to handle up to 40 million passengers and 700,000 tonnes of cargo per year in 2025.
Chengdu has routes to 189 cities, including 70 overseas. On May 2, Chengdu opened a route to Moscow, its fourth direct service to Europe.   Enditem

Source Xinhua

Editor   Xuefei Chen Axelsson

Interview: Lombardy region president pushes for more Chinese investors

Interview: Lombardy region president pushes for more Chinese investors

 

by Grandesso Federico and Yan Lei

Milan, Italy, April 29 (Greenpost) — “More Chinese investors should come to Lombardy, they are welcome, there are many opportunities in the region and we are going to show them during the Expo,” Roberto Maroni, president of Lombardy Region said.

“There are many success stories, all investors are welcome, now we promote an initiative called ‘invest in Lombardy’ because we value your business,” the president said in an exclusive interview with Xinhua two days before the opening of Expo Milano.

” We have a vocation to innovation and research, we have 13 universities, 500 research centers both private and public, all the most important ICT companies are based in Milan and Lombardy,” he added.

Lombardy enjoys an exceptional climate for entrepreneurs and the president explains that there are one million companies out of ten million inhabitants, these companies are mainly SMEs and called “family companies ” which need help to be competitive in the world so investments from outside are welcome. Lombardy hosts 18,000 foreign companies.

He said: “For us, to attract investments means not only to come here with a new company and do what you normally do in China but we want to magnetize investment funds to help our companies to become part of our economic system.”

He said: “Investors have many choices; our ICT companies are excellent, some of them are even collaborating with NASA; then we are considered a number one manufacturing region,” he continued.

“Lombardy is agriculture and food production region in Italy, for example, a company near Brescia produces 24 tons of caviar per year exporting it even to Russia,” he said.

According to Maroni new investors can help the brand of “Made in Italy”. He explained that the Italian style and the Made in Italy is something unique and the problem is that most of the more successful Italian products are not produced in Italy.

“As food is concerned the total Italian export per year is 30 billion euros while the so called ‘Italian sounding’ or fake Italian is 60 billion euros,” he added.

“For this reason we welcome investment in the Made in Italy because this reinforces our possibility to increase the volumes of export,” the president explained.

Maroni said: “In 2013 Lombardy exported to China products for more than 3 billion euros while we imported products of 9 billion euros and our exports to China have increased 6 percent from 2012. Then over 100 Lombardy companies are involved with China with a total amount turnover of over 4 billion euros and more than 6000 employees.”

Maroni said he wants to visit China. “Till now I didn’t manage it but I want to go, I know the country and its evolution. I’m very impressed with the Chinese evolution from many points of view starting from the economy, the new landscapes in many towns and the rate of speed they have in every fields,” he said.

“China is more and more appreciated by the Italians and we want to support this evolution thanks to good relations between Lombardy, Italy and China,” he explained.

The president concluded his interview with a message: “Come to visit the Expo, Milan and Lombardy. Lombardy is a world heritage site, we have ten UNESCO sites. You have to visit our beauties and meet with our culture and food.” Enditem

Source Xinhua

Editor Xuefei Chen Axelsson

China Focus: China issues guideline for eco-friendly developmen

China Focus: China issues guideline for eco-friendly development

 

BEIJING, May 5 (Xinhua) — China’s cabinet on Tuesday published a guideline on improving the country’s environment, vowing to achieve “major progress” in the area by 2020.

In the 35-clause guideline, the State Council stressed the need to consider environmental protection when planning economic and social development, and to raise public awareness about the environment.

China’s safeguarding of the environment still lags behind its economic status, with prominent problems such as limited resources and severe pollution becoming major bottlenecks for sustainable growth, the guideline noted.

It called for more economical and efficient use of resources. By 2020, China aims to reduce carbon dioxide emissions by 40 to 45 percent from the 2005 level, and increase the share of non-fossil fuels in primary energy consumption to around 15 percent, according to the guideline.

Other targets include a steady improvement in water and soil quality, forestry and wetland coverage.

The guideline also stressed efforts to promote green urbanization and strengthen protection of ocean resources.

Decades of breakneck growth in China have dried up resources and left the country saddled with problems including smog and contaminated waterways.

In 2014, only eight of 74 major Chinese cities subject to PM 2.5 air quality monitoring met the national standard for clear air, according to data released by the Ministry of Environmental Protection (MEP).

Another MEP report released in June 2014 revealed that some 60 percent of ground water checked by 4,778 monitoring stations was rated as “bad” or “very bad”.

To strike a balance between growth and environment, China declared a “war against pollution” last year, calling for tougher regulations over polluting industries.

In his annual government report in March, Premier Li Keqiang pledged to take “a firm and unrelenting approach to ensure blue skies, clear waters, and sustainable development”.

Steady progress is being made. A new environmental law launched in January has toughened penalties for pollution and made clear that public-interest groups have the right to sue liable parties.

Earlier this month, the State Council unveiled a detailed action plan to fight water pollution. It said more than 70 percent of the water in the seven major river valleys, including the Yangtze and Yellow rivers, should be in good condition by 2020. The same target is set for offshore areas. Small factories in sectors including paper, insecticides and tanning will be shut down by the end of 2016.

And with Tuesday’s announcement of the overall roadmap, analysts expect more detailed regulations to follow.

“The key for the next step is whether we can seriously implement the guideline,” noted Wang Yi, head of the Institute of Policy and Management under the Chinese Academy of Sciences. Enditem

 

Source Xinhua

Editor  Xuefei Chen Axlesson

 

China Focus: Online money market funds lose luster

China Focus: Online money market funds lose luster

 

Stockholm, June2 (Greenpost) — Online money market funds (MMFs) are losing their appeal to Chinese investors who crave higher yields in the stock market.

Combined assets of online MMFs totaled 1.36 trillion yuan (222 billion U.S. dollars) at the end of the first quarter, down 9.8 percent from the previous quarter, according to data from Beijing-based lending information provider Rong360.com.

The figure was a sizable reduction compared to a peak of 1.56 trillion yuan at the end of September 2014.

Analysts said a bullish stock market has drawn money away from online MMFs.

The benchmark Shanghai Composite Index has gained more than 30 percent since the start of this year, accompanied by a frenzy of new accounts and record turnover.

Rong360.com analyst Xu Jin said that a huge amount of capital has flowed out of bank deposits and online MMFs into the stock market, feeding the market’s steady climb.

Online MMFs offered annualized interest rates of nearly 7 percent when they first became popular in 2013, but the current rate has fallen to around 4 percent, another reason they have lost their allure, according to Xu.

The falling yields accompanied two interest rate cuts and two drops in banks’ reserve requirement ratio by the central bank since November of last year.

Despite the general decline, Alibaba’s Yu’e Bao, the most popular and largest online MMF, was an exception. Its first quarter report showed assets had reached 712 billion yuan as of the end of March, up 23 percent from three months ago.

Alastair Sewell, Senior Director of Fund & Asset Manager Ratings at Fitch Ratings, said the relative ease and convenience of online MMFs have made them wildly popular and a key wealth management tool for average investors.

Yu’e Bao can be used for online purchases, taxis, credit card payments, mortgage payments, and even utilities such as water and electricity. It also offers instant redemption and no-fee money transfers between bank accounts.

However, Sewell warned that online MMFs have a less stable investor base with yield-hungry retail investors susceptible to herd behavior, which could result in a mass outflow of funds. Enditem

Source  Xinhua

Editor Xuefei Chen Axelsson

Austrian companies aiming to strengthen business with China: economic chambers

Austrian companies aiming to strengthen business with China: economic chambers

Stockholm, June 2(Greenpost) — Despite a recent slowing of economic growth in China, Austrian companies intend to both develop and expand their presence there, Martin Glatz from the Austrian Economic Chambers (WKO) said at a press conference Wednesday.

He said both China’s internationalization and urbanization are attractive for Austrian companies.

Its “New Silk Road” project, that involves investment in trade routes, can provide infrastructure that can also be useful for Austrian companies in approaching other markets, such as economic interests in Central and Eastern Europe, Glatz said.

The progressive urbanization of China brings with it a rapidly increasing demand for consumer and lifestyle goods, he said, with wage increases and more time available for the middle class to pursue leisure activities.

The urbanization trend also provides potential opportunities in infrastructure and urban development, particularly in creating a higher quality of life in urban areas with a focus on sustainable concepts and the establishment of “smart cities.”

Demographic changes such as an aging population mean demand for pharmaceuticals and medical technology will increase, Glatz said. Enditem

Source  Xinhua

Editor   Xuefei Chen Axelsson

 

China to promote energy price reform

China to promote energy price reform

 

Stockholm, June 2(Greenpost) — China will promote price reforms of energy, especially electricity in 2015, the National Energy Administration (NEA) said Thursday.

The costs and prices of electricity transmission and distribution will be monitored, but the price determined by the market. A power transaction market will be established to better allocate resources. Clean energy will be advanced, according to NEA’s document on market supervision in 2015.

Monopolies in some sections of energy supplies will be reviewed in an effort to open the market to competition.

The NEA demanded more supervision of power suppliers, the quality of the electricity supplied, service levels, price and other charges.  Enditem

Source Xinhua

Editor  Xuefei Chen Axelsson

Direct air route between Milan and Shanghai inaugurated

Direct air route between Milan and Shanghai inaugurated

 

Stockholm, June 2(Greenpost) — Italian airline company Alitalia on Friday launched a direct route between Milan and Chinese megacity Shanghai, in an effort to attract more Chinese tourists to the 2015 expo.

The Airbus 330 aircraft, which has 250 seats, will fly three round-trips each week between the two cities.

The Milan Expo 2015 kicked off on Friday, and will last until the end of October. Italian embassy in Beijing has shorten the visa processing time for Chinese tourists to attract more people to the Expo. Enditem

Xinhua Source

Editor  Xuefei Chen Axelsson

New direct Beijing-Budapest air route opens

New direct Beijing-Budapest air route opens

Stockholm, June 2 (Greenpost) — Air China’s Beijing-Budapest route was officially inaugurated on Friday evening, when its Airbus 330-200 landed at Budapest Ferenc Liszt International Airport.

Airport officials were on hand to greet the first flight, welcoming it with an archway of water as the craft glided into its slot on the tarmac.

Hungary’s Minister of Foreign Affairs and Trade Peter Szijjarto, Chinese Ambassador to Hungary Xiao Qian attended the welcoming ceremony.

The Airbus 330-200 can carry 207 economy and 30 business class passengers, and will be commuting between the Chinese and Hungarian capitals four times weekly.

On the way to Budapest the flight stops once, in Minsk, Belarus, but the return trip from Budapest to Beijing is non-stop.

Budapest Airport CEO Jost Lammers called the new route a historical moment for Hungarian air transport and the Hungarian economy, too.

“I’m sure the new flight will be very popular with tourists and business travelers,” he said, adding that the air bridge between the two countries had great potential. Enditem

Source Xinhua

Editor  Xuefei Chen Axelsson

Volkswagen recalls 5,869 cars on problems with fuel pump in China

Volkswagen recalls 5,869 cars on problems with fuel pump in China

BEIJING, May 3 (Xinhua) — German carmaker Volkswagen and its joint venture in China FAW-Volkswagen will recall a total of 5,869 cars in China due to problems with fuel pumps, according to China’s quality watchdog.

The recalls, which starts on July 8, involves eight imported Golf Variant, produced in June of 2014, 512 imported Audi A3 40TFSI, made between Dec. 2013 and March 2014, 4,377 Golf A7 1.4T, manufactured between April and June of 2014, as well as 972 Audi A3 35TFSI, made between April and July of 2014, according to a notice issued by the General Administration of Quality Supervision, Inspection and Quarantine.

Some of the above-mentioned cars might have abnormal or disfunctioning fuel pumps, which might cause inability to start the cars or, under some extreme circumstances, lead to the flameout.

The company will contact clients and replace the flawed parts free of charge. Enditem

Source Xinhua

Editor Xuefei Chen Axelsson

3D printer making Chinese space suit parts

3D printer making Chinese space suit parts

 

Stockholm, June2, (Greenpost) — Chinese researchers have used 3D printing technology to make a safer space suit for astronauts while spacewalking.

A research center under the China Aerospace Science and Technology Corporation used a 3D printer to create the vent pipes and the flanges connecting the pipes used on extravehicular space suit, according to a recent report from China Space News.

The vent pipe and the flange as a whole can improve the reliability and safety of the space suit, and suits can be made more efficiently. Researchers will use the technique to make more parts, says the report.

The technology has been approved by the Scientific Research Training Center for Chinese Astronauts.

China plans to launch its second orbiting space lab, Tiangong-2, in 2016, and aims to put a permanent manned space station into service around 2022.

Chinese astronauts have three kinds of space suit: inside-capsule suit, inside-capsule jacket and extravehicular space suit.

The inside-capsule space suit is used in case the pressure changes in the spaceship, usually during launch and landing periods.

The blue and lightweight inside-capsule jacket is used during normal flight, and is more convenient for work in the spaceship or space station.

The extravehicular space suit is the most complicated, providing life support system for astronauts during spacewalks.

The Shanghai Academy of Spaceflight Technology has successfully developed a multi-laser metal 3D printer, enabling astronauts to print items with just one 3D printer in space.

Wang Lianfeng, senior engineer at the academy, says the 3D printing technology is suitable for making parts with complicated structures and odd shapes, such as the valves of rocket engines.

“It’s very difficult to process the complicated parts by traditional methods,” says Wang. For example, it takes two groups of workers, working shifts around the clock, more than two weeks to make a part of a rocket engine, but a 3D printer can do it in just 16 hours.

Wang says China is on the cutting edge of 3D printing technology.

The multi-laser metal 3D printer in the Shanghai Academy of Spaceflight Technology is like a gray-colored cabinet.

The 3D printer used in space is similar to regular printer in principle, but it should be smaller and lighter, and must undergo more zero gravity tests, says Wang.

There are still many difficulties to overcome in 3D printing in space. Researchers are still developing materials suitable for 3D printing and the precision of 3D printed items needs to be improved, Wang adds.   Enditem

Source Xinhua

Editor  Xuefei Chen Axelsson

 

 

Fastest cargo train linking China, Europe to add station

Fastest cargo train linking China, Europe to add station

 

Stockholm, June 2(Greenpost) — A cargo train route that links southwest China’s Chengdu city with the Polish city of Lodz will add a new station in western Europe, it was announced Wednesday.

The candidate countries include France, Belgium, Germany and the Netherlands, according to Chengdu officials who attended the third Asia-Europe Meeting (ASEM) in Riga, Latvia.

The 9,826-kilometer Chengdu-Lodz line, upon which travels the fastest freight train on the Eurasian continent, leaves China at the Alataw Pass in northwestern Xinjiang before passing through Kazakhstan, Russia and Belarus on its way to Poland. From Lodz, cargo can reach any country in Europe within three days by rail or land.

As of April, the line has transported over 20,000 tonnes of cargo from China worth more than 600 million U.S. dollars since it was opened in 2013.

Another regular cargo train linking northeast China’s Heilongjiang Province to central Russia was launched in February.

A number of mainland cities — including Chongqing in southwest China; Wuhan, Zhengzhou and Changsha in central China; and Shenyang in northeast China — have rail freight services to Europe. Enditem   Source Xinhua

Editor Xuefei Chen Axelsson

China pledges deeper int’l industrial cooperation

China pledges deeper int’l industrial cooperation

 

STOCKHOLM, June 2(Greenpost) — The State Council, China’s cabinet, on Wednesday vowed more promotion of industrial integration with other countries for mutual benefit.

China will push industrial and equipment manufacturing cooperation with other countries in accordance with their needs, according to a statement released after a State Council executive meeting presided over by Premier Li Keqiang.

Cooperation with countries, most notably those along the Belt and Road Asian infrastructure and trade networks, could drive Chinese equipment exports in industries including railways, power, telecommunications, construction materials and machinery, while helping the recipient countries create jobs and stimulate growth, the statement said.

Efforts should be made to “foster an industrial cooperation chain” and build a cross-border yuan payment system, according to the statement.

The cabinet also urged authorities to simplify investment procedures to pave the way for equipment exports.

To facilitate industrial upgrading and boost economic growth, the Chinese government has on many occasions underscored the importance of “international industrial capacity cooperation”, referring to a campaign that will involve moving Chinese production lines to other countries and China setting up factories with local partners abroad.

Earlier data showed outbound direct investment of the equipment manufacturing sector hit 960 million U.S. dollars during the first quarter of 2015. Enditem

Source Xinhua

Editor  Xuefei Chen Axelsson

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China Exclusive: China ranks top in iOS downloads

China Exclusive: China ranks top in iOS downloads

Stockholm, June 2(Greenpost)– iOS quarterly downloads grew 30 percent between Q1 2014 and Q1 2015, meaning China surpassed the U.S. and is now the world leader in iOS downloads, according to App Annie, a mobile analytics company headquartered in San Francisco.

Danielle Levitas, senior vice president of App Annie, revealed the news at the Global Mobile Internet Conference (GMIC) in Beijing on Wednesday.

Download growth translates into iOS App Store revenue gains. From Q1 2014 to Q1 2015, revenue in China grew 90 percent compared to 30 percent in the U.S. and 50 percent in Japan. “China grew more quickly to narrow that gap,” she said.

Earlier this week, Apple released its earnings report, announcing that international sales accounted for 69 percent of the revenue for the quarter, reflecting the high demand in emerging markets such as China for Apple products.

According to Levitas, Apple has dramatically expanded distribution in China. As of April 25, China has 19 Apple Stores across 10 cities, up from just 8 in only Beijing and Shanghai in October 2013.

China boasts the world’s most Internet and cell phone users. There were 649 million Internet users by the end of 2014, and some 557 million used cell phones to go online, official data showed.

“China, a mobile-first country, has seen smartphone exceed PC adoption,” Levitas added, “Chinese consumers want large-screen smartphones with longer battery life.”

Though app stores as a whole are marching forward, contrasts lie in different markets. Levitas highlighted that Android’s Google Play led the Apple’s iOS App Store in app downloads by nearly 70 percent in Q1 2015, while iOS maintained a strong monetization lead, generating close to 70 percent more revenue than Google Play in the same period.

“Emerging markets like Mexico, Turkey, Brazil, and Indonesia were the primary drive of Google Play’s growth,” she explained.

She also predicted that strong growth would continue across emerging markets, especially as Andriod phones below 200 U.S. dollars expand opportunity beyond mature markets.

In terms of categories, games dominated, followed by lifestyle and photo & video, while education is closing in. Education app downloads grew 25 percent on downloads and 35 percent on revenue between Q1 2014 and Q1 2015, according to Levitas.

In Q1 2015, education saw the second highest absolute revenue gain over Q4 2014, after games, ranking among the top five Google Play categories by quarterly revenue.

“It was boosted from language learning apps like Duolingo and Babbel, brain training apps like Lumosity, and MOOC platforms like iTunes U and TED,” she noted. Enditem

Source Xinhua

Editor  Xuefei Chen Axelsson

China to roll out energy-saving photovoltaic-driven inverter air conditioners

China to roll out energy-saving photovoltaic-driven inverter air conditioners

Stockholm, June 2, (Greenpost) – China’s photovoltaic company Yingli Solar and the country’s leading home appliances manufacturer Gree Electric Appliances (000651.SZ) have inked a cooperation agreement on the promotion and application of photovoltaic-driven inverter central air conditioners across the world.

According to the agreement, Yingli Solar will provide solar power generating products and relevant technologies and solutions to Gree’s ‘photovoltaic-driven inverter centrifuges, ‘photovoltaic-driven inverter variable refrigerant volume’, and other photovoltaic-driven inverter central air conditioning systems. The product series are capable of using solar energy to lower investment costs and improve the utilization of solar energy.

The two sides will also share their channels to jointly promote the ‘photovoltaic-driven inverter central air conditioning’ product series across the globe, and Gree is to use its global marketing network to promote Yingli Solar’s distributed photovoltaic power generation system.

Zhang Zhe, general manager of Yingli Photovoltaic Power Investment Group, said the cooperation with Gree will open a new era for the collaboration between solar power generation and home appliances industries and it will help facilitate solar energy to enter more households.

Source Xinhua

Editor  Xuefei Chen Axelsson

China Focus: Belt and Road Initiative facilitates more opening-up China

China Focus: Belt and Road Initiative facilitates more opening-up China

STOCKHOLM, June 2(Greenpost) — After decades of rapid growth, China is trying to further opening up and integrate into the global economy using  its Belt and Road Initiative.
During Chinese President Xi Jinping’s recently finished state visit to neighboring Pakistan, an estimated 50 billion U.S. dollars worth of contracts were signed on road, railway and energy projects.
The contracts are a small step of the initiative’s greater ambition to better link China to the world.
The “Belt and Road” refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, mainly international trade and infrastructure projects, proposed by Xi when he visited Central Asia and Southeast Asia in September and October 2013.
On March 28, China unveiled an overall action plan for the initiative in order to accelerate implementation. The plan noted it is open to all countries and organizations to seek common prosperity.
The initiative will focus on transport, energy and communication infrastructure, and cooperation on investment, trade, industrial division, financing, education, tourism and technology.
The initiative shows China’s effort to adapt to a changing world and push forward globalization through a new round of comprehensive opening up, said Li Xiangyang, president of the National Institute of International Strategy under Chinese Academy of Social Sciences.
Hans-Paul Burkner, chairman of the Boston Consulting Group, said the initiative will be crucial in further developing globalization and will benefit China and other countries.
China has been opening up for more than 30 years. It has transformed into market-oriented economy and attracted investment from developed economies such as the United States, the European Union and Japan.
Already the world’s second largest economy, China is seeking to further open through cooperation with developing countries and emerging economies, both at the core of the Belt and Road Initiative.
“The programs of development will be open and inclusive, not exclusive. They will be a real chorus comprising all countries along the routes, not a solo for China itself,” Xi said on March 28 when addressing the 2015 Boao Forum for Asia in south China’s island province of Hainan.
The strategy covers countries and regions with a total population of 4.4 billion and a total economic volume of 21 trillion U.S. dollars, 63 percent and 29 percent respectively of the world’s total.
Burkner believes the initiative will help China create big markets along the routes, which means more opportunities to spread manufacturing and production around the region and for individuals and companies to participate in the world economy.
“China is devoting itself to build a community of common destiny with Asian countries and even rest of the world via platforms like the initiative, the Asian Infrastructure Investment Bank and the Silk Road fund,” said Zhai Kun, a professor of international relations at Peking University.  Enditem  source Xinhua
Xuefei Chen Axelsson editor

China Headlines: China launches three more free trade zones

BEIJING, Apr. 21 (Xinhua) –Three new free trade zones (FTZ) began official operation on Tuesday as China seeks to draw more international commerce.
The new zones were established 18 months after the first FTZ was unveiled in the financial hub Shanghai, which was designed to help streamline the overloaded administrative approval system and encourage innovation and internationalization.
Officials expect the new FTZs in Tianjin, Guangdong and Fujian will boost economic reform, promote trade and facilitate investment in new areas as the world’s second largest economy moves away from an unsustainable export-dependent model.
Provincial-level officials attended the launching ceremony at the three zones Tuesday, when dozens of business licenses were ceremonially granted to registered enterprises.
Some businesses have already experienced the increased efficiency of working in the new zones.
Liu Qiya, the chief financial official with Tuwei Tongli Electrical Technology based in Xiamen, an open coastal city of Fujian, said his company was granted an operational license for the zone just three days after the application was submitted. The same procedure in other parts of the province could take weeks.
Antonio Fossanti, CEO of the Italian RDS, said the reason his retail company chose to operate in the Tianjin zone is the one-stop solution of problems concerning policy, customs, trade and marketing.
According to a detailed plan released on Monday, the new zones will be based on the Shanghai FTZ but catered to utilize their geographical locations.
By its first anniversary, the Shanghai zone had seen nearly 12,000 registered enterprises lured by a better trade and investment environment.
The Tianjin zone aims to better integrate the northern municipality with Beijing and Hebei Province. It will prioritize modern service industries, including shipping, culture and equipment manufacturing.
The Guangdong zone will deepen economic cooperation between the mainland and neighboring special administrative regions Hong Kong and Macao. It will have three bases in the cities of Guangzhou, Shenzhen and Zhuhai.
The Fujian zone will focus on developing economic cooperation between the mainland and Taiwan. It will cover three areas in Xiamen, Fuzhou and Pingtan, a new industrial park targeting investment from Taiwan.
The Shanghai zone, which has been more than quadrupled in size since it was established, will continue to strive for “the greatest openness” to facilitate investment and trade with currency convertibility and a sound legal environment. It will also further open its service and manufacturing industries.
All zones must adhere to the negative list, which details 122 prohibited or restricted areas for foreign investment, ranging from Internet news services, production of radio and television programs to non-ferrous metal mining. This number has been reduced from 139.
Foreign investors will be subject to the same rules and regulations for new investment as domestic firms.
Experts believe that these fresh zones are strategically important for the “belt and road” initiative, which aims to better connect Asia, Europe and Africa, as a way to boost investment and consumption.
Shao Yu, Shanghai-based chief economist of the Orient Securities Co.,Ltd., said the four FTZs will be crucial “supporting points” for the belt and road initiative.
“More opening-up moves are needed in regions such as southwestern Yunnan and Tibet for the new strategic layout,” he said.
Wang Shouwen, assistant minister of commerce, said the new zones will not just copy the Shanghai zone but also break fresh ground in areas such as investment administration, trade regulation and financial systems.
The replication of successful reform measures is a common strategy in the reform and opening-up drive. The Shenzhen Special Economic Zone, founded in 1980, has been rolled out along the entire east coast over the past three decades.
That zone allowed foreign investment to develop the manufacturing industry, a driving force behind the economic boom of previous decades.
FTZ fever has caught the attention of officials across the country, with many pushing for their regions to be included in the next batch of FTZs.
However, observers warn that the central government must ensure that the FTZs are used to pioneer reform measures, and that their policies are correctly implemented.
Foreign business groups have said that the Shanghai zone brought improvements but they expected “more tangible benefits” of financial reforms, such as full convertibility of the yuan. Enditem