China Free Trade Zones Explained
China Free Trade Zones (FTZs), each with its own particular focus, offers benefits for foreign companies such as faster registrations and customs clearance, warehouse storage, duty-free import, low foreign exchange rates, and the ability to move goods between FTZs and overseas without paying taxes in China.
Foreign companies are able to engage in economic activities and practices that are not commonly accepted in most areas and make it easier for foreign companies to enter the Chinese market by setting up a Wholly Foreign-Owned Enterprise (WFOE) incorporation in China.
China first established its Free Trade Zone (Chinese FTZ) system in 2013 in Shanghai, and has since expanded it to include an additional 10 zones. Initially, China placed its first free trade zones in coastal areas where major commercial ports are located, but has begun to include inland locations, an indication of China’s desire to develop its interior regions. China also plans to transform Hainan Island into a FTZ to further capitalize on the island’s substantial land mass in the near future.
With the introduction of FTZs, foreign companies are able to engage in economic activities and practices that are not commonly accepted in most areas and make it easier for foreign companies to enter the Chinese market by setting up a Wholly Foreign-Owned Enterprise (WFOE) incorporation in China.
Each China FTZ has a particular focus, determined by the Chinese State Council, and offer benefits for foreign companies such as faster registrations and customs clearance, warehouse storage, duty-free import, low foreign exchange rates, and the ability to move goods between FTZs and overseas without paying taxes in China.
Each Chinese FTZ bears the name of the province or municipality in which it is located, and are generally divided into three areas. As with our discussion of the Chinese Tier Cities, we are providing this information in a table format for easy reference and access.
| China FTZ name (English) | China FTZ name (Chinese) | Year established | Total land area | FTZ Focus | Subdivision (English) | Subdivision (Chinese) | Subdivision land area |
| China (Chongqing) Pilot Free Trade Zone | 中国 (重庆） 自由贸易试验区 | 2017 | 120 km² | High-end manufacturing Tariff-free services | Xiyong | 西永片区 | 23 km² |
| Liangjiang | 两江片区 | 66 km² | |||||
| Guoyuangang | 果园港片区 | 31 km² | |||||
| China (Fujian) Pilot Free Trade Zone china-fjftz.gov.cn | 中国（福建）自由贸易试验区 | 2015 | 118 km² | Taiwanese trade and investment Tourism and shipping “Maritime Silk Road” development | Fuzhou | 福州片区 | 31 km² |
| Pingtan | 平潭片区 | 43 km² | |||||
| Xiamen | 厦门片区 | 44 km² | |||||
| China (Guangdong) Pilot Free Trade Zone china-gdftz.gov.cn | 中国（广东）自由贸易试验区 | 2015 | 116 km² | Experimental area for synergies among Guangdong, Hong Kong and Macao Pilot zone for financial, cultural education, and high technology “Maritime Silk Road” development | Nansha Area of Guangzhou | 广州南沙新区片区 | 60 km² |
| Qianhai & Shekou Area of Shenzhen | 深圳前海蛇口片区 | 28 km² | |||||
| Hengqin Area of Zhuhai | 珠海横琴新区片区 | 28 km² | |||||
| China (Henan) Pilot Free Trade Zone china-hnftz.gov.cn | 中国（河南）自由贸易试验区 | 2017 | 120 km² | “One Belt, One Road” traffic and logistics development Incubate emerging industries | Luoyang | 洛阳片区 | 27 km² |
| Zhengzhou | 郑州片区 | 73 km² | |||||
| Kaifeng | 开封片区 | 20 km² | |||||
| China (Hubei) Pilot Free Trade Zone china-hbftz.gov.cn | 中国（湖北）自由贸易试验区 | 2017 | 120 km² | Central China development with a focus on industrial transfer “Yangtze River Economic Belt” development | Yichang | 宜昌片区 | 28 km² |
| Xiangyang | 襄阳片区 | 22 km² | |||||
| Wuhan | 武汉片区 | 70 km² | |||||
| China (Liaoning) Pilot Free Trade Zone china-lnftz.gov.cn | 中国（辽宁）自由贸易试验区 | 2017 | 120 km² | Focus on north eastern economic development, focusing on industrialization and talent attraction Sea and rail integration | Shenyang | 沈阳片区 | 30 km² |
| Yingkou | 营口片区 | 30 km² | |||||
| Dalian | 大连片区 | 60 km² | |||||
| China (Shaanxi) Pilot Free Trade Zone shaanxiftz.gov.cn | 中国（陕西）自由贸易试验区 | 2017 | 120 km² | Focus on technology, agriculture, cultural, and education “One Belt, One Road” and “Western Development” | Yangling Demonstration | 杨凌示范区片区 | 6 km² |
| Central | 中心片区 | 88 km² | |||||
| Xi’an International Trade & Logistics Park | 国际港务区片区 | 26 km² | |||||
| China (Shanghai) Pilot Free Trade Zone china-shftz.gov.cn | 中国（上海）自由贸易试验区 | 2013 | 121 km² | Focus on free trade, foreign investment, international shipping, and financial services Government transformations and legal system enhancements Offshore tax system development and research | Bonded (consists of four sub-sections) | 综合保税区 | 29 km² |
| Bonded: Waigaoqiao | 外高桥保税区 | ||||||
| Bonded: Waigaoqiao Free Trade Logistics Park | 外高桥保税物流园区 | ||||||
| Bonded: Yangshan Free Trade Port Area | 洋山保税港区 | ||||||
| Bonded: Pudong Airport Comprehensive Free Trade Zone | 浦东机场综合保税区 | ||||||
| Jinqiao Development Zone | 金桥开发区片区 | 20 km² | |||||
| Lujiazui Financial Zone | 陆家嘴金融片区 | 34 km² | |||||
| Zhangjiang High Tech Park | 张江高科技片区 | 37 km² | |||||
| China (Sichuan) Pilot Free Trade Zone sccom.gov.cn | 中国（四川）自由贸易试验区 | 2017 | 120 km² | “Western Development” Focus on foreign trade, advanced manufacturing, and modern services | Chengdu Qingbaijiang Railway Port Area | 成都青白江铁路港片区 | 10 km² |
| Chengdu Tianfu New Area | 成都天府新区片区 | 90 km² | |||||
| South Sichuan Port Area | 川南临港片区 | 20 km² | |||||
| China (Tianjin) Pilot Free Trade Zone china-tjftz.gov.cn | 中国（天津）自由贸易试验区 | 2015 | 120 km² | Focus on manufacturing, shipping, and logistics Enhance synergies among Beijing, Tianjin and Hebei | Tianjin Airport | 天津机场片区 | 43 km² |
| Binhai CBD | 滨海新区中心商务片区 | 47 km² | |||||
| Tianjin Port Dongjiang | 天津港东疆片区 | 30 km² | |||||
| China (Zhejiang) Pilot Free Trade Zone china-zsftz.gov.cn | 中国（浙江）自由贸易试验区 | 2017 | 120 km² | Bulk commodities trading, especially oils Marine industries | Zhoushan Offshore | 舟山离岛片区 | 79 km² |
| Zhoushan North | 舟山岛北部片区 | 16 km² | |||||
| Zhoushan South | 舟山岛南部片区 | 25 km² |
Additional Resources
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