21st Century Business Herald:

This year marks the 10th anniversary of the establishment of China's pilot FTZs. My question is, in the first half of this year, what has MOFCOM done with regard to implementing the strategy of upgrading the pilot FTZs and tap into their roles as pilot platforms for comprehensive reform and opening up? Thanks. 

Guo Tingting:

Thank you for your question. As you said, this year marks the 10th anniversary of the establishment of China's pilot FTZs. We have some considerations regarding this landmark. Mr. Yang will explain the details. 

Yang Tao:

Thanks. The pilot FTZ construction is a major strategic measure adopted by the CPC Central Committee with Comrade Xi Jinping at its core to further reform and open up in the new era. As you said, this year marks the 10th anniversary of China's pilot FTZ construction. From the new start, MOFCOM has continued to thoroughly study and put into practice the important instructions on pilot FTZ construction given by General Secretary Xi Jinping and firmly implemented the pilot FTZ upgrading strategy in accordance with the key plans made at the 20th CPC National Congress. Our work has focused on three aspects:

First, we have prioritized connections with high-standard international economic and trade rules amid efforts to promote institutional opening-up. Recently, we submitted a circular to the State Council for release on deepening reforms in some eligible pilot FTZs and the Hainan Free Trade Port to align with high-standard international economic and trade rules amid efforts to boost institutional opening up. The circular focuses on pilot policies and measures and risk prevention and control approaches in six major fields, including trade in goods and services, the temporary entry of business personnel, digital trade, business environment, and risk control, and supports the five eligible FTZs in Shanghai, Guangdong, Tianjin, Fujian, and Beijing and the Hainan Free Trade Port to take the lead in the pilot work. This will help explore the path for comprehensively deepening reform and expanding opening up, providing practical support for joining high-standard economic and trade agreements.

Second, we have worked to expand the application of a new batch of institutional innovations to unleash greater reform dividends. We recently submitted to the State Council for release a circular on expanding the application of the seventh batch of reform experiences tested in China's pilot FTZs nationwide or in special regions, involving 24 reform measures in total. This is expected to further unleash the dividends of the reform and opening-up policies of pilot FTZs, and help improve the business environment and build a higher-level open economy. 

Third, we have adopted a to-do list to guide our efforts in the next three years, and advance differentiated exploration. The list nails down 164 major tasks relevant pilot FTZs plan to handle independently in the next three years amid efforts to strengthen categorized guidance and help pilot FTZs deepen reform and practical innovation in accordance with their local conditions. 

High-level institutional innovations have effectively stimulated the vitality of pilot FTZs. Statistics show that in the first half of this year, utilized foreign investment in 21 pilot FTZs reached 129.66 billion yuan, a year-on-year increase of 8.2%. The growth of utilized foreign investment by high-tech industries reached 21.2% year on year. Overall, pilot FTZs cover less than 0.4% of national land and attracted 18.4% of total foreign investment in the country. 

Moving forward, MOFCOM will continue to fully implement the guiding principles of the 20th CPC National Congress and focus on three improvements, which are: improving the alignment with high-standard international economic and trade rules, market access, and systemic integration of reform. Efforts will be made to fully implement the strategy to upgrade pilot FTZs and other relevant policies and measures, and tap into their roles as pilot platforms for comprehensive reform and opening up, making continuous contributions to the high-level opening up. Thanks.