The pilot free trade zone (FTZ) concentrates all the advantageous policies and functions of various special regulatory zones in China. It is the policy platform with the highest degree of openness, the most complete functions, the least obstacles to the cross-border flow of goods, the greatest economy and convenience, and the most in line with international practices. The FTZ adopts international standards to ensure the free flow of goods, manpower, capital and services. All types of enterprises registered in the FTZ enjoy the right to import and export, and can engage in bonded logistics, exhibitions, financial services, scientific and technological research and development, etc. For example, the financial pilot of the FTZ simplifies the sale and payment of foreign exchange under non-trade items, and can open offshore accounts, etc.
The domestic FTZ is a small specific area established within the country to implement preferential taxation and special regulatory policies, similar to the “free zone” defined by the WCO. Most of the various FTZs located in seaports, airports, and inland areas at home and abroad belong to this kind of “community”, which is generally also called a free trade park. Part of the city where the port is located is designated as a free trade zone, and an international air and sea port located in the center of a comprehensive transportation hub.
Free trade pilot zones or comprehensive bonded zones require the support of multiple industries in the hinterland or surrounding areas. Taking into account the characteristics and needs of modern international logistics, efficient customs clearance and all-weather services are required. China’s import and export logistics super cabins are all located in the comprehensive bonded areas or import and export processing zones of major ports. There is also competition between cities and between bonded areas. Many places have the problem of “focusing on investment promotion and neglecting operation”, with weak comprehensive service capabilities, large land area, low tax returns, and lack of financial support. As a result, many companies are registered, but few are actually operating, and there is a phenomenon of price without market. The original intention of establishing a free trade zone is to promote the integration of domestic and foreign trade and realize the linkage of the opening of the two markets by building an intermediate platform. The focus is still to serve specific industries well and stimulate innovative business models, but it needs to be adapted to local conditions.