FDI China Exclusive: The 21 Free Trade Zones Guide 2023

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Special Economic Zones (or Free Trade Zones) is a Chinese government economic policy that was introduced in 2013 in a grand plan to bolster and promote foreign direct investment in various industries varying by region. The first special economic zones (SEZ) were created with the intent of promoting international trading. The first designated Free Trade Zones (FTZ) opened in Shanghai in 2013, followed by Guangdong, Tianjin and Fujian in 2015.

Free Trade Zones are areas where goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the local customs authorities. Only when the goods are moved to consumers within the province in which the zone is located do they become subject to the prevailing customs duties.

Companies registered (location of registered address) within the boundaries of these SEZ enjoy: 

  • Lower corporate tax rates
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • A faster VAT refund

Following the success of the first 4 FTZs, the CPC decided to open additional FTZs with different economic incentives (not just trading) to align with the government planned economy across its territory.

We know that information on most of the newer Free Trade Zones in China is hard to come by…

In this guide, we take a deep dive into every Special Economic Zone in China. We research and report each trade zone’s economic policy, industries of interest, purpose, location and more!

Shanghai Free Trade Zone

The Shanghai Free Trade Zone (SFTZ) is a pilot project launched by the Chinese government in September 2013 to promote foreign investment and international trade. It covers an area of 120 square kilometers in the Pudong district of Shanghai and is divided into three areas: the Waigaoqiao Bonded Area, the Yangshan Bonded Port Area, and the Shanghai Pudong Airport Free Trade Zone.

The SFTZ is designed to simplify trade procedures, reduce bureaucracy, and create a more attractive investment environment for foreign companies. It offers a range of incentives for businesses, including reduced tariffs, simplified customs procedures, and the ability to convert foreign currency more freely. The zone also allows for more flexible regulations on foreign investment, allowing foreign businesses to operate in a wider range of industries.

In addition to its economic benefits, the SFTZ also serves as a testing ground for economic and financial reforms in China. It has implemented a number of innovative policies, such as the creation of a negative list system that limits foreign investment only in industries that are explicitly restricted by the government.

Since its establishment, the SFTZ has attracted many multinational corporations, including General Electric, IBM, and Pfizer. The success of the SFTZ has encouraged the Chinese government to establish additional free trade zones in other parts of the country.

Shanghai Free Trade Zones

Started: 2013

Locations: Shanghai, Pudong District

Waigaoqiao Free Trade Logistics Park – end of metro line 6

Yangshan Free Trade Port Area – metro line 2

Pudong Airport Comprehensive Free Trade Zone – metro line 2

Shanghai Jinqiao Economic and Technological Development Zone – metro line 6

Zhangjiang Hi-Tech Park – metro line 2

Shanghai FTZ Website: http://en.china-shftz.gov.cn/

Industries of interest: International trade and finance

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund

Guangdong Free Trade Zone

The Guangdong Free Trade Zone (GFTZ) is a special economic zone located in the southern province of Guangdong, China. Established in 2015, the GFTZ covers an area of over 116 square kilometers and includes three separate zones: Nansha in Guangzhou, Qianhai and Shekou in Shenzhen.

The GFTZ aims to promote trade, investment, and financial cooperation between China and the rest of the world. The zone offers a range of preferential policies and measures, such as simplified customs procedures, tax incentives, and relaxed regulations on foreign investment. The GFTZ is becoming an increasingly popular destination for foreign investors looking to enter the Chinese market, particularly in the sectors of finance, logistics, and technology.

Guangdong Free Trade Zone

Started: 2015

Location: 3 major cities in Guangdong province

Guangzhou: Nansha District, New Area and port

Shenzhen: Qianhai District, Development Zone

Zhuhai: Hengqin District, New Area

Guangdong FTZ website: http://ftz.gd.gov.cn/Eng/

Industries of interest: International trade and finance

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund

Tianjin Free Trade Zone

The Tianjin Free Trade Zone (TJFTZ) is a special economic zone established in China in 2015, covering an area of 119.9 square kilometers. Located in the Binhai New Area of Tianjin, the TJFTZ is designed to facilitate international trade and investment by offering tax breaks, streamlined customs procedures, and other incentives to businesses operating within its borders.

The zone is divided into several areas, including a bonded logistics park, a comprehensive bonded zone, and a financial services area. It is home to a wide range of industries, including manufacturing, logistics, finance, and high-tech sectors. The TJFTZ has become an important gateway for foreign businesses looking to expand their operations in China and tap into the country’s rapidly growing market.

Tianjin Free Trade Zone

Started: 2015

Location and industries: 

Tianjin Airport Economic Area: high-end manufacturing industries, aviation, aerospace, equipment manufacturing, IT, R&D, design and aviation logistics

Tianjin Dongjiang Free Trade Port Zone: shipping logistics, international trade, and financial leasing.

Tianjin Binhai New Area Central Business District: financial services and commerce.

Tianjin FTZ website: https://www.tjftz.gov.cn/english/

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund

Fujian Free Trade Zone

The Fujian Free Trade Zone (FTZ) is one of the first free trade zones established in China, located in the southeastern province of Fujian. The zone covers an area of approximately 118 square kilometers and comprises three parts: the Pingtan Area, Fuzhou Area, and Xiamen Area. The FTZ was established in 2015 to promote economic development and international trade by offering tax incentives, relaxed regulations, and streamlined customs procedures to businesses operating within its borders.

It is home to a diverse range of industries, including electronics, machinery, and logistics, among others. The Fujian FTZ is strategically located on the Maritime Silk Road and serves as a gateway to Southeast Asia, making it an attractive destination for foreign investors looking to expand their businesses in China.

Fujian Free Trade Zone

Started: 2015

Location and industries of interest: 3 cities in Fujian province

Fuzhou: international trade and finance

Xiamen: international trade and finance

Pingtan: international trade and finance

Fujian FTZ website: http://www.china-fjftz.gov.cn/html/en/index.html

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund

Chongqing Special Economic Zone

The Chongqing Special Economic Zone (CSEZ) is a special economic zone located in the southwestern part of China. It was established in 2016 to promote economic development in the region, and it covers an area of over 82,000 square kilometers. The CSEZ is made up of several districts, including the Chongqing Liangjiang New Area, the Chongqing Jiangjin District, and the Chongqing Bishan District.

The CSEZ has become an important hub for trade, logistics, and manufacturing, and it is home to a wide range of industries, including automotive, electronics, and chemicals. The zone has attracted significant foreign investment over the years, and it continues to be a popular destination for businesses looking to expand their operations in China. The CSEZ is strategically located near major transportation routes, including the Yangtze River, making it an ideal location for businesses looking to tap into China’s domestic market.

Chongqing Special Economic Zone

Started: 2016

Locations: Chongqing

Liangjiang new area: new technologies and biotechnologies
Liangjiang FTZ website:
http://enljxqfy.chinacourt.gov.cn/index.shtml

Xiyong: Microelectronic activities and high tech

Guoyang port: logistics and trade

Policies:

  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.

Sichuan Free Trade Zone

The Sichuan Free Trade Zone (SFTZ) is a special economic zone located in southwestern China, covering an area of over 120 square kilometers. The SFTZ was established in 2017 to promote economic development and encourage international trade by offering tax incentives, relaxed regulations, and streamlined customs procedures to businesses operating within its borders. The zone is made up of several areas, including the Chengdu Area, the Suining Area, and the Luzhou Area. The SFTZ is strategically located along the “Belt and Road” initiative, and it is home to a diverse range of industries, including electronics, machinery, and food processing.

The SFTZ has become an important hub for foreign investment and has attracted significant attention from companies looking to expand their businesses in China. With its convenient location and business-friendly environment, the SFTZ is poised to become one of China’s most important economic zones in the years to come.

Sichuan Free Trade Zone

Started: 2016

Location and industries of interest:

Chengdu: IT & communications, logistics, vehicle import, financial services, high-end manufacturing, high-tech Industries, air-transportation related economy and port services

Chengdu  FTZ website: http://ftz.chengdu.gov.cn/FTA/home.shtml

Policies:

  • A faster and streamlined customs clearance depending on HS code of product.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.

Shaanxi Special Economic Zone

Shaanxi Special Economic Zone is a significant economic zone located in the northwest region of China. It was established in 2016 by the Chinese government to promote economic development and attract foreign investment in the region.

The Shaanxi Special Economic Zone covers an area of approximately 30,000 square kilometers, spanning across four cities in Shaanxi province, including Xi’an, Xianyang, Weinan, and Yan’an. With a rich history and abundant natural resources, the zone aims to become a hub for innovation, technology, and advanced manufacturing industries, as well as a gateway to China’s Belt and Road Initiative.

The Shaanxi Special Economic Zone has great potential for growth and presents numerous opportunities for businesses and investors interested in exploring China’s northwest region.

Started: 2016

Locations and industries: 2 cities in Shaanxi

Xi’an: high-end manufacturing, aviation logistics, trade, financial services, tourism, exhibition services and e-commerce.

Xianyang: Agricultural science and technology.

Shaanxi FTZ website: http://en.xa.gov.cn/business/whyxian/2242.htm

Policies: 

  • A faster and streamlined customs clearance depending on HS code of product.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.

Henan Free Trade Zone

The Henan Free Trade Zone covers an area of approximately 120 square kilometers, including Zhengzhou, the capital city of Henan province.

The zone aims to leverage the advantages of its location, transportation network, and industrial base to become a hub for cross-border e-commerce, advanced manufacturing, and modern services. With its strategic position as a transportation hub connecting China’s east and west regions, the Henan Free Trade Zone presents significant opportunities for businesses and investors interested in exploring the Chinese market and expanding their global reach.

Started: 2016

Location & Industries: 3 cities in Henan province

Zhengzhou: development of advanced manufacturing industries,such as high‑end equipment, automobile production and biomedicine. It will also promote a range of high-end services such as logistics, e‑commerce, financial services, service outsourcing, design and trade conferences/exhibitions.
Zhengzhou FTZ website:
http://en.zzftz.gov.cn/

Kaifang: Service outsourcing, medical tourism, tourism, cultural trade, design, fine art trading and logistics equipment manufacturing, agricultural processing and related trade activities.
Kaifang FTZ website:
http://www.kfftz.gov.cn/

Luoyang: High‑end manufacturing such as equipment manufacturing, robotics and innovative materials, R&D, design, e‑commerce, service outsourcing, tourism, cultural and creative industries, cultural trade and cultural exhibitions.
Luoyang FTZ website:
http://www.china-lyftz.gov.cn

Henan FTZ website: http://en.zzftz.gov.cn/zcfg/143.jhtml

Policies:

  • Foreign capital can be freely invested into suitable manufacturing in the region.
  • Restriction on foreign-owned manufacturing (factory) operations are lifted in the region.
  • IP rights are enforced and foreign manufacturers are protected.
  • Issue permanent residency to high-level foreign talents and their spouses / dependents.

Zhejiang Free Trade Zone

The Zhejiang Free Trade Zone is located in the eastern coastal region of China. Established in 2016, it covers an area of approximately 119.95 square kilometers, including three cities in Zhejiang province: Hangzhou, Ningbo, and Zhoushan. The Zhejiang Free Trade Zone aims to deepen economic reforms, enhance the opening-up of the economy, and promote international trade and investment in the region.

With its strategic location, well-developed infrastructure, and advanced manufacturing industries, the zone presents significant opportunities for businesses and investors interested in exploring the Chinese market and expanding their global reach. The Zhejiang Free Trade Zone also serves as a gateway to the Belt and Road Initiative, providing a platform for cross-border e-commerce, international logistics, and financial services. With its favorable policies and business-friendly environment, the Zhejiang Free Trade Zone has become an attractive destination for foreign investment in China.

Started: 2016

Location & industries: 3 cities in Zhejiang province

Ningbo: international petrochemical and shipping hub for wet bulk trade. (Oil and gas)
Ningbo FTZ website:
http://www.nftz.gov.cn/col/col1229026785/index.html

Hangzhou: AI, fintech, life sciences, e-commerce and high-tech manufacturing.
Hangzhou FTZ website:
http://www.ehangzhou.gov.cn/index.html

Jinyi: commodity, logistics, and manufacturing

Zhejiang FTZ website: https://zcom.zj.gov.cn/art/2018/2/27/art_1455357_15652993.html

Policies:

  • A more open financial investment sector to foreigners
  • Trade facilitation and innovation

Hubei Free Trade Zone

The Hubei Free Trade Zone is expected to become a hub for advanced manufacturing, international logistics, and cross-border e-commerce, as well as a gateway to the central region of China.

Started: 2016

Locations and industries of interest: 3 cities in Hubei province

Wuhan: International commerce and trade, financial services, logistics, R&D, design, and emerging industries such as but not limited to optoelectronics information, advanced manufacturing, and biomedicine.

Yichang: Cultural tourism, biomedicine, R&D, shipping logistics, equipment manufacturing, and the high-tech industry.

Xiangyang: Manufacturing of high-end equipment, new-energy vehicles, logistics, trade, product exhibition, e-commerce, big data, cloud computing and other services.

Hunan FTZ website: http://en.hubei.gov.cn/news/newslist/201609/t20160907_894646.shtml

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund

Liaoning Special Economic Zone

Started: 2016

Locations and industries of interest: 3 cities in Liaoning  province

Dalian: port and shipping logistics, financial trade, advanced equipment manufacturing, high-tech and new technology, circular economy, shipping services and other industries.

Shenyang: advanced manufacturing, auto vehicles and auto components, aviation equipment, modern services including finance, science and technology and logistics.

Yingkou: services, trade logistics, cross-border e-commerce, finance, strategic emerging industries, information technology and high-end equipment manufacturing.

Liaoning FTZ website: http://www.china-lnftz.gov.cn/en/index.html

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund
  • Foreign capital can be freely invested into suitable manufacturing in the region.
  • Restriction on foreign-owned manufacturing (factory) operations are lifted in the region.
  • IP rights are enforced and foreign manufacturers are protected.
  • Issue permanent residency to high-level foreign talents and their spouses / dependents.

Hainan Free Trade Port

Started: 2018

Location: Hainan Island/province. Capital: Haikou

Industries of interest: International trade and finance

Hainan FTZ website: http://en.hnftp.gov.cn/

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund

Jiangsu Free Trade Zone

Started: 2019

Locations and industries of interest: 3 cities in Jiangsu province

Suzhou: trade and investment, administrative services, legal system, aerospace and biomedical science.

Nanjing: semiconductors, life and health industry, AI, IT and finance.

Lianyungang: advanced manufacturing such as biomedicine, new materials, new energy and high-end equipment, logistics, cross-border e-commerce, technology services, financial services, health care, leisure, tourism, business support, big data, port and shipping logistics, distribution and transshipment, warehousing, port processing, trading and supporting services.

Jiangsu FTZ website: http://swt.jiangsu.gov.cn/col/col79303/index.html

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund

Shandong Free Trade Zone

Started: 2019

Locations and industries of interest:

Qingdao Free Trade Port Zone: marine industries, foreign trade, shipping logistics, financial services, advanced manufacturing, exchange market, bonded processing.
Qingdao FTZ Website:
http://bofcom.qingdao.gov.cn/

Jinan: AI, industrial financial services, health care and elderly care, tourism and IT.

Yantai: high-end manufacturing, new materials, IT, green-tech and biomedicine.

Policies:

  • Lower corporate tax rates between 15% and 9%
  • Import tax exemption until goods are moved out of the SEZ (out of the warehouse)
  • Free currency exchange rate (no fees for converting major currencies)
  • A fast and streamlined customs clearance.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.
  • Faster VAT refund

Hebei Free Trade Zone

Started: 2019

Location and industries of interest:

Xiongan Area: IT, life science, e-commerce, biotechnology and high-tech related services.

Zhengding Area: airport economy, biomedicine, logistics, high-end equipment manufacturing, aviation.

Caofeidian Port Area: international commodity trade, port and shipping services, energy storage and distribution and high-end equipment manufacturing.

Daxing Airport Area: aviation logistics, aviation technology and financial leasing.

Policies:

  • A faster and streamlined customs clearance depending on HS code of product.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.

Heilongjiang Free Trade Zone

Started: 2019 to boost co‑operation with Russia and Northeast Asia

Location and industries of interest: 3 cities in Heilongjiang province 

Harbin: next‑gen IT, novel materials, high‑end equipment, biomedicine, tech-based services, financial services and tourism.

Heihe: cross‑border energy resources, food cultivation, trade, logistics, tourism, healthcare and financial services.

Suifenghe: import processing for materials such as timber, grains and clean energy, financial services and logistics.

Heilongjiang FTZ Website: http://ftz.heihe.gov.cn/

Policies: 

  • A faster and streamlined customs clearance depending on HS code of product.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.

Guangxi Free Trade Zone

Started: 2019

Location and industries of interest: 3 cities in Guangxi province

Nanning: financial services, logistics, digital services, culture and media and new manufacturing industries.
Nanning FTZ website:
http://www.wuxiangxinqu.gov.cn/

Qinzhou port: port logistics, international trade, ‘green’ chemicals, new‑energy vehicle parts, electronics and biomedicine.
Qinzhou FTZ website:
http://qzftz.qinzhou.gov.cn/

Chongzuo: international trade, logistics, financial services and tourism.

Guangxi FTZ Website: http://en.gxzf.gov.cn/guangxiftz.html

Policies:

  • A faster and streamlined customs clearance depending on HS code of product.
  • A hub of transportation, pick and pack and logistic service providers to choose from. All nearby.

Yunnan Free Trade Zone

Started: 2019

Locations and industries of interest: 3 cities in Yunnan province

Kunming FTZ: high-end manufacturing, aviation logistics, agriculture, biomedicine and health, IT F&B and consumer goods manufacturing, tourism, logistics, new materials and advanced equipment manufacturing.
Kunming FTZ website:
https://ftz.yn.gov.cn/en-us/

Dehong: Imports & exports, cross-border e-commerce logistics, ‘green’ food processing, tourism, medical and financial services.
Dehong FTZ website:
http://dehong.ynmaker.com/en-us/

Honghe: Imports & exports, cross-border e-commerce logistics, tourism, medical and financial services.
Honghe FTZ website:
http://honghe.ynmaker.com/en-us/

Beijing Free Trade Zone

Started: 2020

Location: Beijing

Industry of interest: Innovation, fin-tech and services

Purpose: Development of a world-class innovation hub

Policies: 

  • A more open financial sector to foreigners
  • Trade facilitation and innovation
  • Ease of integrated development and international trade
  • Easier for high-end talent to obtain visa

Anhui Free Trade Zone

Started: 2020

Locations & industries: 3 cities in Anhui province

Hefei: integrated circuits, AI, fin-tech, and cross-border e-commerce

Wuhu: smart home appliances, aviation, robotics, and shipping

Bengbu: silicon-based materials, green-tech, and green-energy

Purpose: The area will lead manufacturing of green-tech and high-tech

Policies:

  • A more open financial sector to foreigners
  • Trade facilitation and innovation
  • Ease of integrated development and international trade

Hunan Free Trade Zone

Started: 2020

Locations and industries: 3 cities in Hunan province

Changsha: Manufacturing of AI, Quantum computing, renewable energies, and green tech.

Yueyang: Manufacturing of AI, Quantum computing, renewable energies, and green tech.

Chenzhou: Manufacturing of AI, Quantum computing, renewable energies, and green tech.

Policies:

  • Trade facilitation and innovation
  • Ease of integrated development and international trade