26 May 2015
Three new Experimental Free Trade Zones (EFTZ) have recently opened in Guangdong. The first, located in the Hengqin district of Zhuhai, will act as a financial center linking the Guangzhou-Macau-Hong Kong regions. The second, in the Nansha district in south Guangzhou, will serve as a logistics zone. The third, in the Qianhai district of Shenzhen, will allow Chinese consumers to buy goods from Hong Kong duty-free.
The zones aim to integrate the Pearl River Delta region, pulling together Guangdong, Hong Kong and Macau into one economic unit. In these special regions, Chinese mainland businesses would be allowed to borrow from overseas lenders, and Hong Kong businesses can set up shop. Through these, China hopes to bring some of what makes Hong Kong special into Mainland China.
The EFTZs are not isolated examples. China is developing similar zones in Shanghai, Fujian and Tianjin. The Shanghai zone opened in September 2013. Much as the Guangdong zones seek closer integration with Hong Kong, the Fujian zone will take advantage of Taiwan’s economy, and the Tianjin zone will use the city’s position as the major port of the Bohai region.
… The author is a research analyst at RSIS’ China Programme, Nanyang Technology University. The opinions expressed are the author’s own.
IDSS / Online
Last updated on 18/11/2015