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Chengdu is Seeking to Establish Free Trade Area in Western China

A total of 1959 people read this information  Updated Time:2014-06-09  [Return to list]

   June 6, 2014, Chengdu Commercial Daily, Edition 05: Highlights

   Core tip:

     ■ Technology-focus, fully playing the roles of R&D capabilities, highly-educated workforce and manufacturing base

     ■ Opening the trade tariff, foreign exchange, interest rate trend and investment flows

     ■ Being helpful for local manufacturer to update equipment, reform technologies and helping the government to provide better services and promote the international status of Chengdu

   Chengdu has submitted a request for the establishment of FTA to the Ministry of Commerce, hoping to be smoothly approved as the pilot FTA in Shanghai last year.

   As the reforming pioneer of the cities in Western China, Chengdu has submitted a request for establishment of FTA to the Ministry of Commerce, hoping to be smoothly approved as the pilot FTA in Shanghai last year.

   According to Xie Kaihua, the Director of Sichuan Provincial Department of Commerce, “these attempts are very important for the development of the inland areas in China.”

   “Due to the unique geographical, economical and cultural advantages, the possibility for Chengdu to be approved to establish FTA is great.”

   As early as July in last year, that is two months before the unveiling of China (Shanghai) Pilot FTA, Chengdu had already completed the preparation of draft plan of FTA.

   It is officially disclosed by Chengdu that the Ministry of Commerce is very optimistic about Chengdu’s draft plan of FTA.

   In September of last year, Shanghai Pilot FTA was established as the test field for the country’s financial services.

   Generally, the landing, handling, manufacturing or reinstalling and re-exportation of goods within FTA are not subject to the interference of customs authorities.

   It is officially disclosed by Chengdu that there are three main focuses for the applied FTA----

   Focus 1: Differentiation competition

   The pilot FTA of Shanghai focus on the fields of service and finance, in contrast, the FTA established in Chengdu is technology-focus and can fully play the roles of R&D capabilities, highly-educated workforce and manufacturing base.

   It is indicated in one government document of Chengdu: “the FTA of Chengdu will be an upgrading of the existing technology bonded area.”

   Focus 2: China Western Development

   The range for Shanghai Pilot FTA is the eastern coast of China, but the FTA plan of Chengdu aims to bring the reform to China’s western regions, which coincides with the policies to develop western economy made by the central government.

   As the center of China Western Development, Chengdu will greatly benefit.

   It is indicated in the government document of Chengdu City: “Chengdu FTA will open the trade tariff, foreign exchange, interest rate trend and investment flows.” it will quickly attract foreign investment and have the enterprises engaging in manufacturing and services enter into Chengdu faster.

   The establishment of Chengdu FTA will also help Chengdu to transform into the trade center of Western China faster.

   Focus 3: Integration with the world

   The establishment of FTA will lead China to realize another economic take-off since the accession to WTO, being helpful for Chengdu to integrate into the world and turn the attention of overseas enterprises to Western China, where is in urgent need of funds to promote economic strength.

   In fact, Chengdu has got many advantages and is expected to catch up with Shanghai.

   First, the trade history between Chengdu and European countries is long.

   Secondly, the relationship between Chengdu and Southeast Asian countries has always been tight and now there is a Technology Park under construction co-developed with Singapore.

   Thirdly, Chengdu lies at an important location of Southwestern China transportation hub, with developed air and land transport.

   Fourthly, Chengdu is one of the recognized mainstay for the technology development of China, favored by HP, Dell and other world-famous enterprises.

   Fifthly, Chengdu has strong financial base, with most of the major banks all over the world setting up branches here.

   Since the Chinese central government started to promote the policies of “China Western Development” in the early 1990s, Chengdu, as the provincial capital of Sichuan Province, has been standing at the forefront of development.

   Chengdu opened the first municipal Expo Bureau in China and trained a group of excellent talents to promote the development of exhibition industry.

   Last year, Chengdu successfully held the Fortune Global Forum and the World Chinese Entrepreneurs Convention.

   Xie Kaihua said: “In order to realize further development, we must reform by ourselves and the establishment of FTA is completely in line with this philosophy.” (Originally appeared in Edition A9 “Shanghai Daily” on June 5)


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