Goal set of Hengqin Free Trade Zone being a free port

Zhuhai has become one of a dozen Chinese cities looking to open a free port -- one with international standards that ensure an unrestricted flow of goods, human resources, capital, and investment.

Having the Hengqin Free Trade Zone include a free port with Chinese characteristics was proposed at the Sixth Plenary Session of the Eighth CPC Zhuhai Municipal Committee in Xiangzhou District on Jan 10 and 11. This would lead to a new round of opening Hengqin, which integrates the Zhuhai Free Trade Zone, and Hongwan and Wanzai, to the outside world after three years' development as part of the China (Guangdong) Pilot FTZ.

The goal is to draw more sci-tech and service-oriented high value-added companies to Zhuhai. A free port also would create a better innovation and entrepreneurship environment for domestic enterprises. As a result, Zhuhai would likely accelerate in economic transformation and upgrades.

Hengqin Free Trade Zone [Photo courtesy nanfangplus]

A free port with the highest degree of openness requires improved infrastructure, and Zhuhai's policy innovations would have to be conducive to cooperation with Macao. This is because a free port is open to all commercial vessels on equal terms. Goods may be unloaded, stored, and shipped without payment of customs duties there.

Macao and Hong Kong offer examples of advanced operation and management methods that could be highly instructive, it was stated. To create a business climate as favorable as theirs, more-flexible policy systems and regulatory modes, as well as more-effective management, were called for to facilitate improvements in internal and external trade, investment, financing, taxation, and entry-exit procedures.

Cross-border financing, high-end medical, and sci-tech enterprises could also expect boosts from more-open and more-inclusive policies than a free trade zone offers.