China's FTZ to unleash more policy dividend

December 19, 2019

Abstract : China’s pilot Free Trade Zones (FTZ) are carrying out the central government's plan of launching full-coverage pilot reform that separates business operation permit from business license, aiming to further lower access threshold for enterprises and unleash more policy dividend.

BEIJING, Dec. 19 (Xinhua) – China’s pilot Free Trade Zones (FTZ) are carrying out the central government's plan of launching full-coverage pilot reform that separates business operation permit from business license, aiming to further lower access threshold for enterprises and unleash more policy dividend.

With another six new FTZs being approved in August this year, a regional layout of FTZs covering the whole country has taken shape, with pilot programs of institutional reform being carried out on a wider scope.

Northwest China’s Shaanxi Province issued an implementation plan about full-coverage pilot reform of separating business operation permit from business license on November 30 of 2019, saying that Shaanxi Province will institute full-coverage list management on multiple enterprise-related business licensing matters set by the central and provincial governments.

According to the plan, the objective is to push for institutional innovation through four methods, which include canceling review and approval, changing review and approval into filing, implementation notification commitment, and optimizing review and approval services in Shaanxi Province.

Meanwhile, east China’a Jiangsu FTZ will also implement such reform by following the four methods of Shaanxi Province from December of the year, while Shanghai FTZ will implement the reform through filing, implemented notification commitment, and optimized review and approval services, seeking to reduce institutional transaction costs for enterprises and unlock market vitality.

In addition, FTZs in Guangxi, Shandong, Hebei, Yunnan and other regions have also implemented the pilot reform of separating business operation permit from business license.

Market analysts held that with the implementation of investment system reform in FTZ, policy dividend will be unleashed soon.

While realizing their own development, pilot free trade zones will bring more spillover effects and add to the momentum of China's overall business environment improvement. (Edited by Jiang Feifan)