CCTV:

As China's vanguard of reform and opening-up, how was the construction of pilot free trade zones (FTZs) in 2022? What results have been achieved? For the next step, what are the considerations of MOFCOM in constructing pilot PFTZs in 2023? Thank you.

Guo Tingting:

Thank you for your questions. I will briefly answer them. The construction of pilot FTZs is a crucial strategic measure taken by the CPC Central Committee with Comrade Xi Jinping at its core to deepen reform and opening-up in the new era. In 2022, all pilot FTZs across the country made further advancements by forging ahead and exploring bravely. Those achievements were mainly demonstrated in the following aspects.

First, we have promoted high-quality opening-up. All pilot FTZs have implemented a slew of measures to deepen opening-up in the field of investment and trade in a bid to give full play to the leading role of opening up. They have made positive contributions to the development of foreign trade and investment. Since the new negative lists for foreign investment market access for pilot FTZs took effect on Jan. 1, 2022, the amount of items in the manufacturing sector on the negative list for pilot FTZs has dropped to zero, and the service sector has constantly deepened opening up. In 2022, the actual use of foreign capital in the 21 pilot FTZs totaled 222.52 billion yuan, accounting for 18.1% of the country's total. Among those, the actual use of foreign capital in high-tech industries reached 86.34 billion yuan, up 53.2% year on year. At the same time, local governments have taken innovative measures to further enhance trade liberalization and facilitation. Guangxi, Yunnan and Heilongjiang have explored new models to facilitate frontier trade among inhabitants of border regions. Shaanxi has pioneered the "customs declaration before packing" mode to clear cross-border e-commerce bulk cargo, shortening the customs clearance time by two to three days. In 2022, the total import and export volume of the 21 pilot FTZs reached 7.5 trillion yuan, up 14.5% year on year, accounting for 17.8% of the country's total.

Second, we have deepened reform and innovation. Pilot FTZs have strived to improve governance capacity through institutional innovation, to further optimize the business environment. In 2022, MOFCOM and relevant departments issued 56 documents to support the development of pilot FTZs, empowering those pilot FTZs to conduct more reform tasks on a trial basis. As of the end of 2022, all provinces, autonomous regions and municipalities directly under the central government have delegated more than 5,400 items of provincial-level administrative authority to pilot FTZs, significantly streamlining the approval process. Shandong, Guangxi and other places have even innovated and rolled out negative lists for delegating power.

Third, we have boosted high-quality development. Pilot FTZs have actively explored ways to remove institutional barriers that hinder the accumulation of innovative resources and factors at home and abroad. This has accelerated the development of new industries, business forms and models. Several competitive industrial clusters have already taken shape. For example, the Xiyong bonded area in Chongqing has formed a hundred-billion-yuan intelligent terminal industry cluster with an annual output of more than 100 million units. The bonded area of Wuhan in Hubei province has made extensive efforts to develop the optoelectronic information industry, gathering more than 16,000 related enterprises.

Fourth, we have supported major national strategies. Pilot FTZs have vigorously promoted cross-regional collaborative innovation. In 2022, Shandong, Henan, Sichuan and Shaanxi jointly built the Yellow River Basin Pilot Free Trade Zone Alliance with five other provincial-level regions along the Yellow River. Together with the previously established joint conference mechanism of the pilot FTZs in Beijing, Tianjin and Hebei and Yangtze River Delta Pilot Free Trade Zone Alliance, they have given full play to the influence and driving role of the new highland of reform and opening-up, injecting new impetus into serving and promoting the implementation of major national strategies, especially major regional strategies.

The 20th National Congress of the CPC proposed implementing a strategy to upgrade pilot FTZs. In 2023, we will earnestly fulfill the functions of the State Council's Inter-ministerial Joint Meeting for the Work of Pilot Free Trade Zones in accordance with the decisions and arrangements of the CPC Central Committee and the State Council. First, we will actively align with high-standard international economic and trade rules, intensify stress tests in pilot FTZs and free trade ports, and steadily advance opening up with institutional guarantees in the areas of management, standards, rules, and norms, to accumulate experience and explore ways to deepen domestic reform in relevant fields. Second, we will support pilot FTZs to conduct in-depth differentiated exploration and promote open and innovative development of the whole industrial chain in key areas such as integrated circuits, biomedicine, and high-end equipment manufacturing. Third, we will replicate and promote more and better institutional innovation achievements to further unleash the dividends of reform and opening-up. Thank you.