Breakthroughs in institutional innovations

Pilot FTZs gear up to play bigger role in reform,opening-up,development

After a decade of expansion over five rounds, China's 21 pilot free trade zones, located in both coastal regions and interior parts, are gearing up to play a bigger role in reform, opening-up, economic growth and high-quality development based on the dual-circulation paradigm, in line with the top leadership's guidance.

China's pilot FTZs will implement higher-level opening-up as China seeks to join high-standard free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement, experts and government officials said.

The FTZs are expected to align themselves better with advanced international trade and economic rules, to facilitate broader market entry and improvements to systemic and institutional innovation in governance policies, they said.

That would mark the next big leap for China's pilot FTZs whose saga began in 2013 with the first venture in Shanghai. In 2018, China proposed setting up a free trade port in Hainan. Steady strides have been made since, leading to the construction of Hainan FTP in 2020.

Impetus for a larger role for FTZs came on Nov 4 last year when President Xi Jinping said the country will implement a strategy to upgrade them, accelerate Hainan FTP's development and tap into their role as pilot platforms for comprehensive reform and opening-up.

A few days earlier, a report to the 20th National Congress of the Communist Party of China had stressed rapid development of Hainan FTP and upgrade of pilot FTZs.

That resolve was reinforced by Premier Li Qiang on July 26. During a two-day inspection tour of Shanghai, Li called for greater efforts to implement the strategy of upgrading pilot FTZs to promote reform and development with high-level opening-up.

At a recent forum in Zhengzhou,capital of Henan province, Qian Keming, former vice-minister of commerce, said pilot FTZs have been effective in promoting high-standard opening-up, deepening reform and pursuing high-quality development. They are expected to further unleash their potential as measures to upgrade them take effect, he said.