State Council Releases New FTZ Policies

On April 20, the State Council released six important new policies and plans related to China's Free Trade Zone (FTZ) strategy. The new policies include detailed plans for the existing pilot FTZ in Shanghai and the new FTZs in Guangdong, Tianjin and Fujian, which were officially approved in late March. In addition to broader policy plans for the four FTZs, the State Council also released an updated "negative list" and foreign investment national security review trial policy.

The new "negative list," which will be applied to all four FTZs, now includes 122 business areas in which foreign investment is restricted, a slight reduction from the 138 business areas that were restricted in the previous "negative list."

According to the State Council press release, the Guangdong FTZ will focus primarily on accelerating economic integration with Hong Kong; the Fujian FTZ will focus on enhanced collaboration with Taiwan, aiming to serve as a cooperation platform for implementing the "21st century maritime silk road"; and the Tianjin FTZ will be directed at integrating the city with neighboring Beijing and Hebei province.

The State Council also unveiled a new foreign investment national security review policy that will be initiated when foreign companies apply for investment in "sensitive industries, technologies or locations." The policy, which will be implemented from May 20, is under the joint enforcement of the Ministry of Commerce and the National Reform and Development Commission.