34 BEIJING REVIEW AUGUST 29, 2019 http://www.bjreview.comT
he Lin-gang Special Area of the China
(Shanghai) Pilot Free Trade Zone (FTZ)
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an overall plan was issued by the State Council
on August 6. The special area is one of the mea-
sures for advancing further opening up initiated
by Chinese President Xi Jinping at the First China
International Import Expo in November 2018.
According to the plan, the special area
will be located south of the Dazhi River,
east of Jinhui Port, on Xiaoyangshan Island
and south of the Pudong International
Airport. A section covering 119.5 square km
that includes Nanhui New Town, the Lin-
gang Industrial Area, Xiaoyangshan Island
and south of the Pudong International
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“The establishment of the special area
demonstrates China’s stand on all-around
opening up and takes the initiative in lead-
ing the sound development of economic
globalization,” said Li Qiang, Secretary of
the Shanghai Municipal Committee of the
Communist Party of China, at the inaugu-
ration ceremony of the Lin-gang Special
Area.Expansion and progress
The special area is set to match the stan-
dards of the most competitive FTZs in the
world, implement opening-up policies and
systems with strong global market com-
petitiveness and intensify the risk stress
test for the open economy system, said the
State Council plan.
The area will be built into a special eco-
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and competitiveness to better serve the
country’s overall opening-up strategy.
“The plan carries out the requirement
of high-quality development, is set to
match international standards and hold
the bottom line of risk control,” said Wang
Shouwen, Vice Minister of Commerce
and Deputy China International Trade
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on August 6.
Compared to previously establishedTrade and Economic Cooperation under
the Ministry of Commerce, in an interview
with Xinhua News Agency.New opportunities
Under the plan, the special area will feature
free investment, free trade, free flow of
capital and free employment.
A highly competitive taxation system
and policies will be adopted. According
to the plan, corporate income tax will be
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establishment for qualified businesses in
manufacturing as well as research and de-
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circuits, artificial intelligence, biomedicine
and civil aviation. In comparison, the stan-
dard corporate income tax rate for both
domestic and foreign-invested enterprises
in China is now 25 percent.
“Covering a large and interconnected
area, the Lin-gang Special Area has fa-
vorable conditions for attracting key
investment projects, which will be of great
VLJQLĶFDQFHWRLPSURYLQJ&KLQDoVLQGXVWULDOFTZs, the special area has clearer and
higher positioning and more diversified
strategic tasks, highlighting industrial de-
velopment, Wang explained.
“By accelerating the establishment of
systems that adopt international rules, the
special area will better meet the demand
of transforming from opening up based on
free flows of commodities and factors to
rule-based institutional opening up,” Wang
said.
“The special area is not simply an ex-
pansion of the pilot FTZ, it is a fundamental
institutional innovation in all rounds and at
higher levels,” said Chen Yin, Executive Vice
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Amid the rise of trade protectionism,
the creation of the special area demon-
strates the country’s firm determination
to expand opening up and will serve the
future development of the Shanghai FTZ
and promote the high-quality development
of China, said Zhang Jianping, head of the
Center for Regional Economic Cooperation
of the Chinese Academy of International6KDQJKDL·Vó3LORWó)UHHó7UDGHó=RQHóJHWVóDQóLQQRYDWLYHóRSHQLQJXSóDGGLWLRQó%\ó:DQJó-XQ
Special Area,
Special Initiative
XINHUAThe Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone is launched on August 20BUSINESS