To Keep Pace with the Rest of the World: Series Report of Shaanxi FTZ

2017-01-15 23:16:57 , Source : The Government Website of Shaanxi Province

Wind Power Generation in Dingbian County

Products from Samsung, Micron and ZTE are subjected to global distribution by air logistics, is Xi’an in Shaanxi Province so near to Shenzhen in Guangdong Province?

You may draw American salary, eat Spanish ham and enjoy African art ware or travel abroad without delay in Xi’an of Shaanxi Province, is Shaanxi Province at zero distance from the rest of the World?

All the ideas may come true in near future, the reason for which is that the application for establishment of Shaanxi Free Trade Zone has been approved!

Shaanxi Free Trade Zone shall become an additional great power for Shaanxi Province to complete great channel for “Belt and Road” and export products in Shaanxi Province to foreign countries and import products from foreign countries to Shaanxi Province. The “import” and “export” make Shaanxi Province open her gate to the rest of the world in two-way to further narrow the distance between Shaanxi Province and the rest of the world.

1.Completion of “Belt and Road” shall connect Shaanxi Province to the rest of the world

Wang Shengxue as member of Shaanxi Provincial Advisory Committee for Policy Decision and director of Urban Institute of Chang’an University expressed that the greatest opportunity for Shaanxi Province to build free trade zone is Silk Road Economic Belt.

At present, Shaanxi Province has set up economy and trade relation with more than 190 countries, 72-hour transit without visa program for Xi’an Xianyang International Airport has been approved, and Xi’an has become the largest logistics and distribution center in Silk Road Economic Belt. Last year, the passenger throughput of Xi’an Xianyang International Airport was up to 33 million person-times, ranking 8th position in China.

Provincial Party Chief Lou Qinjian in an exclusive interview with Phoenix Satellite Television indicated that development of product market for Samsung and Micron has increased the demand for logistics objectively and the government is expanding domestic demand and the increased demand shall develop industry accordingly, with a large number of goods delivered from place to place and Xi’an may become an important base for air logistics and it is no problem to build a Memphis.

Researcher of Shaanxi Academy of Social Sciences and President of Shaanxi Provincial Society of Urban Economy and Culture Research Zhang Baotong says that Shaanxi Province is connected to Khorgos and Lianyungang and should take the free trade zone as an opportunity to make the best of “Belt and Road “serving as connecting node between land and sea so as to build a center along Silk Road Economy Belt and international metropolis for Asia-Europe cooperation and exchange in China so as to make Shaanxi Province return to the economic center in the world and become the core area of “Belt and Road” and enable Shaanxi Free Trade Zone stand out in inland.

Executive vice president of Research Institute of Silk Road affiliated to Northwest University Lu Shanbing considers that approval of Shaanxi Free Trade Zone is another major opportunity for Shaanxi Province in historical development. The Free Trade Zone shall play an active role in “Belt and Road” in Shaanxi Province and take a leading and demonstration role in economic development in Northwest and exert a great influence on building of new highland for reform and opening in inland.

In the future, a global free trade zone network composed of adjacent countries and regions and covering countries related to “Belt and Road” and key countries in five continents shall come into being based on Shaanxi Free Trade Zone to promote international cooperation in production capacity and work with countries related to “Belt and Road “to set up free trade zone in an active way and form a large market of “Belt and Road” to build “Belt and Road” into a smooth road, a business and trade road, opening road so as to develop a great channel linking home and abroad as well as integrating east, middle and west.

2. Highlight “Positive List” and make advantage of Shaanxi Province “stand out” in the world

Provincial Party Chief Lou Qinjian motioned in description of experience in Shaanxi Province that equipment manufacture industry in Shaanxi Province, for example, electric power equipment, heavy truck, oil, steel pipe and oil machinery are exported to Central Asia, “Chang’an” from Kazakhstan to Xi’an has fostered a route for logistics, requiring no any subsidy, the railway transportation line shall maintain full load operation by market economy.

After preliminary selection of site, the planned area for Shaanxi Free Trade Zone is 119.69sqkm, covering Xi’an High Tech Industries Development Zone, Xi’an International Trade & Logistics Park, Airport New City in Xixian New Area, Xi’an Yanliang National Aviation Hi-Tech Industrial Base, Chanba Ecological District  and Yangling Demonstration Zone. There are five major functions: center for institutional innovation with inland characteristics, business and trade center for logistics supported by multimodal transportation, international finance center characterized by energy finance, people oriented center for cultural exchange and advanced manufacture center characterized by cross-border integration.

What is the function of every business segment in Shaanxi Free Trade Zone? How to make competitive industries in Shaanxi Province go out to the world by “positive list”?

Administration of Development and Reform of Management Committee of Xi’an High Tech Industries Development Zone expressed that Xi’an High Tech Industries Development Zone should build core area of Shaanxi Freed Trade Zone with focus on leading projects for international cooperation, including follow-up project by Samsung, China-Korea  Environmental Protection Industry Park, One Belt One Road Alliance of  Science and Technology Park, Xi’an in Shaanxi Province shall stand on the frontline for reform and opening based on free trade zone to form a low lying land for industry in future. For example, the local area in which partner for Samsung is located is evaluated as the area with the highest processing level in enterprises in the world, being the advantage of Xi’an.

Xi’an High Tech Industries Development Zone shall build advantage in whole industrial chain for semiconductor and next generation automobile industry, energy equipment manufacture base in “Belt and Road “and competitive advantage in emerging industries including the sustainable innovative service industry, biological medicine industry, cyber space safety industry, robot and NC manufacture industry by global mindset so as to further solidify the leading position of Xi’an High Tech Industries Development Zone in export oriented economy in west region and greatly support high tech product export, especially export of high tech products to countries and regions along “Belt and Road “ and support development of emerging trades such as offshore trade, financial lease to make port function of Xi’an Xianyang International Airport extend to in Xi’an High Tech Comprehensive Bonded Zone to drive rapid development of international logistics and relevant industries.

Transmission volume of product oil by product oil pipeline of Shaanxi Yanchang Petroleum Group in Xi’an is in excess of 15 million tons. The pictures in the layout are taken by reporter Yuan Jingzhi of Shaanxi Daily

Administration of Economic Development and Administration of Investment Promotion of Airport New City in Xixian New Area indicate that Airport New City shall aim to build center for traffic, trade and logistic along Silk Road, gathering center for international air service and international center for culture creativity to develop air transportation, air logistics, aeronautical manufacture and maintenance, culture and trade and international business and trade etc. the advantage of free trade zone lies in reform and opening. It is observed from previous four free trade zones that integration of institution with market has greatly invigorated enterprises, with rapid increase in number of enterprises registered in the zone and remarkable leading role of economic improvement in the zone. Approval of free trade zone is to give four major supports to development of air logistics industry in Airport New City: freight source, freight tonnage flow back, enhancement in increment, air transportation and distribution center to make up for deficiency in foreign trade in Shaanxi Province. Function, policy shall come into play subsequently. Transportation capacity, there are fewer freight air routes at present time, air route from Xi’an to Guangzhou, Air route to Seoul by Korean Air to support global air distribution for export processing and manufacturing industry in Shaanxi Province. Service, air logistics service standardization, with port function improved.

Xi’an International Trade & Logistics Park is to form “inland port pattern “featuring port migrated to inland, local billing, multimodal transportation and seamless connection based on three core platforms including Xi’an Comprehensive Bonded Zone, Xi’an Railway Container Center Station and Xi’an Highway Port. Regular train in Central Asia (Xi’an - Alma-Ata) and regular train in Central Europe (Xi’an-Warsaw) to link Shaanxi Province to more countries along “Belt and Road”. Free Trade Zone shall drive development of port, air transportation, airport, logistics and storage industries and attract foreign capital inflow and increase cross-border RMB business to integrate “on shore and off shore”, “logistics and settlement”, “foreign trade and domestic trade” to drive development of financial service industry. The approved national electronic commerce demonstration base and financial leasing industry cluster district determined by Shaanxi Province are trying to become two industrial highlands with production value of RMB 100 billion yuan for electronic commerce and financial leasing respectively so as to prepare for free trade in terms of service industry including finance and logistics etc.

There are more than 5800t of oil product loaded and unloaded at Xi’an Railway Transfer Station of Shaanxi Yanchang Petroleum Group every day

Chanba Ecological District put forward to build international finance business, including offshore finance and settlement center to actively promote free convertibility of RMB capital account in the zone and enhance building of offshore financial market and accelerate energy and economic cooperation with countries along “Belt and Road” and build green finance demonstration zone, greatly develop cross-border electronic commerce payment and settlement and highland for cross-border finance and settlement in an active way based on comprehensive bonded zone, international trade & logistics park and trade tycoons as well as build security and derivative exchange for countries along “Belt and Road” to build Xi’an Finance and Business District into cooperation platform for international finance based on Euro-Asia Economic Forum, Chanba Finance Summit Forum and Xi’an Consulate Zone etc.

Yangling Demonstration Zone shall give full play to its advantages in agricultural technology, education and industry to build Yangling into a clustering zone for international cooperation in modern agriculture, innovation and development of agricultural technology and agricultural product processing between China and other country along Silk Road, with focus on development of agricultural technology service, agricultural finance, deep processing of agricultural product, manufacture of agricultural machinery and equipment, stock breeding, staple agricultural product trade, agricultural product logistics so as to build national modern agricultural high tech industry base and international cooperation center for modern agriculture among countries in economic belt along Silk Road.

Yanliang Aviation Comprehensive Bonded Zone as “birthplace” of homemade big freight aircraft is significant in free trade zone.

3.More opportunities brought by “integration” of Shaanxi Province with the rest of the world

Cross-border investment shall become more convenient. Individual may open free trade account in free trade zone; overseas individual in the zone may also open free trade account. After detailed rules are introduced, individual may invest in foreign capital market by free trade account, including Hongkong Stock Market and US Stock Market. With more and more foreign banks settled in free trade zone, people shall have more option for financing. Free trade zone shall permit establishment of wholly foreign owned recreation place and brokering agency for stage performance to offer more opportunities for people to watch international performance.

Employment and pioneering shall become more convenient. According to the experience in Shanghai Free Trade Zone, there are preferential policies on pioneering in zone in three aspects: business process simplification, preferential import and export tax in policy, innovative advantage in many financial policies. Many college students and emerging internet enterprises consider free trade zone as preferred place for pioneering. Since free trade zone aims to offer an internationalized, legalized and marketized business environment, professionals shall have an opportunity to draw “international salary” without going abroad.

Free trade zone shall bring material benefit to common people in Shaanxi Province, “it is observed from price comparison over internet that the imported commodity is chapter to a great extent. For example, the sirloin of cattle fed on New Zealand grass, the price on the internet is RMB 68yuan/500g, the price here is only REM 38.9yuan/500g. The shopping cart is fully loaded within less than half hour in shopping.

Mr. Mi shopping in Xi’an Linghai International Cross-Border Safety Food Outlet Center shares her shopping experience with reporter. The cross-border outlet shop adopts direct selling mode, with most of tariff and non-tariff barrier removed and low priced imported commodity popular among common people. According to presentation by management personnel, the price of commodity here shall be further reduced after approval of Shaanxi Free Trade Zone.

A corner of manufacturing shop for wind driven generator of Xi’an Subsidiary of CRRC Yongji Electric Co., Ltd.

Take Shaanxi Free Trade Zone as an example, the price of imported commodity is cheaper by 10%-30%. Cross-border commodity is available to consumers at lower price. Free trade zone permits importer to import car from place of origin. Therefore, the car bought from free trade zone is cheaper by 15%-30% compared with that from conventional 4S shop.

Various overseas dresses shown in a shop in Qujiang Longhu Crescent Mall  

Dream to see a doctor abroad shall come true. There is a gap between China and foreign country in terms of medical condition to a certain extent, especially medical equipment. The threshold for foreign investment to enter into medical service field shall be lowered to a great extent. Common people in Shaanxi Province shall experience the medical service and advanced equipment in foreign invested hospital without going abroad.

Is the formality for traveling abroad complex and time consuming? Foreign invested travel agency shall settle in free trade zone due to preferential tax in free trade zone and it is more convenient for foreign invested travel agency to obtain qualification to offer overseas travel service, together with its advantage in network, management, brand and fund, accordingly, there shall be more tourist routes and products available to you in future.

After establishment of free trade zone, in addition to a series of material benefits brought to common people, it shall bring new opportunity and more convenience to enterprises in Shaanxi Province by its relevant industries and supporting industries fostered and developed in future.

Shannxi Province with free trade zone approved shall further develop “Belt and Road” to link to the rest of the world with high efficiency.