China adds three areas to its expanding list of free trade zones
CHINA has decided to set up three new free trade zones (FTZs) as part of efforts to attract foreign investment and boost trade, reports Caixin
CHINA has decided to set up three new free trade zones (FTZs) as part of efforts to attract foreign investment and boost trade, reports Caixin.
The State Council, China's cabinet, has announced a plan to further expand the FTZ programme, adding zones in Beijing, Central China's Hunan province and the eastern province of Anhui. The plan also involves expanding an existing FTZ in the eastern province of Zhejiang, and will bring the country's total number of FTZs to 21.
In China, FTZs are designated areas with preferential business, trade and financial policies that are intended to attract international businesses while testing economic reform and opening measures.
According to the plan, banks in the zone will be allowed to issue overseas RMB-denominated loans to foreign institutions' non-resident accounts (NRA), a special type of account opened with Chinese mainland banks by overseas entities and individuals. Beijing's FTZ will also serve as a testing place for a digital currency developed by the People's Bank of China.