MOFCOM Opinions to Support Further Development of Free Trade Zones

OnDecember 26, 2017, China’s Ministry of Commerce (MOFCOM) issued the Opinions on Supporting the Further Innovative Development of Pilot Free Trade Zones outlining five main areas of improvement for China’s pilot free trade zones (FTZs). They include: 

1. Promote the expansion of foreign trade moving from ‘quantity’ to ‘quality’
2. Continue to optimize the business environment
3. Improve market operation mechanisms
4. Actively participate in international trade cooperation
5. Strengthen organizational efforts 

The Opinions specifically highlight that FTZs should support the development of new business models and cross border e-commerce as well as the market procurement pilots for commodity markets. To reduce customs clearance times, the Opinions call for exploration of paperless import/export licenses and how to adopt a single-window trade facilitation system for international trade.
 
The Opinions call out several areas where FTZs should support development in trade such as trade in technology, culture, outsourced services, and traditional Chinese medicine services. In relation to the negative list, the Opinions call for coordination of relevant departments to continue to shrink the negative list for foreign investment in pilot FTZs, with a focus on opening up service industries such as finance, education, culture, medical services, and general manufacturing. FTZs should also support the cancellation or relaxation of restriction on trade in services, including those related to cross-border supply and the movement of natural persons.