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Advice 建议 | Analysis 解析 | Access 渠道 IN THE ZONE A COMPREHENSIVE GUIDE TO CHINA’S ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONES Advice 建议 | Analysis 解析 | Access 渠道 CONTENTS FOREWORD FROM MATTHEW ROUS, CHINA-BRITAIN BUSINESS COUNCIL -------------------------------------------------------------------------------- 2 FOREWORD FROM JOHN EDWARDS, DEPARTMENT FOR INTERNATIONAL TRADE ------------------------------------------------------------- 4 EXECUTIVE SUMMARY -------------------------------------------------------------- 6 AN INTRODUCTION TO ETDZS ----------------------------------------------------- 7 LATEST DEVELOPMENTS: HAINAN FREE TRADE PORT --------------------- 16 LATEST DEVELOPMENTS: SIX NEW PILOT FREE TRADE ZONES ANNOUNCED IN 2019 ------------------------------------------------------------- 18 LATEST DEVELOPMENTS: THREE NEW PILOT FREE TRADE ZONES ANNOUNCED IN 2020 ------------------------------------------------------------- 22 BEIJING ECONOMIC-TECHNOLOGICAL DEVELOPMENT AREA ------------ 24 SUZHOU XUSHUGUAN ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE -------------------------------------------------------------- 30 SIHONG ECO INTELLIGENT INDUSTRIAL PARK ------------------------------- 36 CHANGCHUN ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE----------------------------------------------------------------------------------- 40 CHENGDU ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE -- 42 GUANGZHOU ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE----------------------------------------------------------------------------------- 44 Advice 建议 | Analysis 解析 | Access 渠道 GUANGZHOU NANSHA ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE -------------------------------------------------------------- 46 HANGZHOU QIANTANG NEW AREA -------------------------------------------- 48 HEFEI ECONOMIC AND TECHNOLOGICAL DEVELOPMENT AREA -------- 50 QINGDAO ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE -- 52 SHANGHAI CAOHEJING DEVELOPMENT ZONE ------------------------------- 54 SUZHOU INDUSTRIAL PARK ------------------------------------------------------ 56 WUHAN ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE ---- 58 XI’AN NATIONAL CIVIL AEROSPACE INDUSTRIAL PARK -------------------- 60 INSIGHTS FROM TRICOR: ETDZS AS THE LANDING POINT FOR FIES ----- 61 INSIGHTS FROM KING & WOOD MALLESONS: DOING BUSINESS IN THE SPECIAL ECONOMIC ZONES: FACT AND FICTION ---------------------------- 64 REFERENCES ------------------------------------------------------------------------- 67 ABOUT CBBC ------------------------------------------------------------------------- 69 Report Lead: Mark Xu Overseeing Editors: Ben Rotheram and Alexandra Kimmons Contributors: Audrey Guerra, Jean-Yves Lavoie, Hannah Williams, Katya Yan, and Charlie Zeng Advice 建议 | Analysis 解析 | Access 渠道 FOREWORD FROM MATTHEW ROUS, CHINA-BRITAIN BUSINESS COUNCIL National Economic and Technological Development Zone, Suzhou Xushuguan National Economic and Technological Development Zone, and Jiangsu Sihong ECO Intelligent Industry Park for their support and commitment to the production of this report. For this edition of In the Zone we take a deeper dive into China’s Economic and Technological Development Zones (ETDZs), which have been key drivers in the development of knowledge- and technology- driven industries in China from their earliest establishment in the 1980s right through to today. We profile selected ETDZs from across China, showcasing the preferential policies they offer to foreign investors. We also detail the development of ETDZs over the last four Welcome to the China-Britain Business decades and invite in-market experts to Council’s second report in our In the Zone provide advice on the practicalities of series. Profiling the wide range of economic operating within an ETDZ. and free trade zones throughout China, this series demonstrates that China’s zones continue to represent important China’s zones continue to opportunities for UK businesses to explore. represent important Keeping on top of the latest zone-related opportunities for UK policy developments remains one of the most effective ways to take full advantage of businesses to explore. these opportunities. This latest In the Zone report also provides For this report, we are delighted to be updates on key developments within China’s partnering once again with the China zones since the publication of the previous International Investment Promotion Agency report, in particular the announcement of (CIPA). I would also like to thank the Beijing 2 | nine new pilot free trade zones in 2019 and zones in general, I warmly invite you to 2020 and the latest news regarding Hainan engage with our extensive network of offices Free Trade Port. across China. Our local knowledge and As the UK’s national business network understanding of the market can help you to promoting trade and investment with China, unlock the full potential of your business as we make it our mission to support the you explore regional growth opportunities, look forward to extending growth of British business in and with China. and we at CBBC our future support to you. While doing business in China is challenging, our members continue to report optimism about their overall prospects in the China market. By further widening the geographical range of special zones and associated incentives, China’s policymakers continue to ensure that even with the influence of Covid- 19, UK businesses enjoy access to Matthew Rous competitive in-market opportunities. Chief Executive This edition of In the Zone will act as a China-Britain Business Council platform for a further programme of activities throughout 2021. For more information on these events and on China’s | 3 FOREWORD FROM JOHN EDWARDS, DEPARTMENT FOR INTERNATIONAL TRADE have played a key role in facilitating, and also one that plays towards the UK’s strengths. With our world-leading capabilities in education, energy, advanced manufacturing, green technology, and professional and financial services industries, amongst many others, there are clear areas of mutual interest and compatibility between the UK and China. This timely report provides essential guidance on taking advantage of these areas of opportunity. The latest full-year figures demonstrate the ongoing strength of UK-China relations. £25.1 billion of goods were exported from the UK to China in 2019 – 6.7% of the UK’s total exports and 34% more than in 2018, making China the third-largest purchaser of UK A thorough understanding of the specifics of exports globally. In the same year, the UK China’s many types of economic zone can be also exported services worth £5.5 billion to as necessary as it is challenging for foreign China, 19% more than in the preceding year. investors. While all zones offer certain preferential policies for those that invest there, certain types are particularly well- China’s shift towards high- suited to foreign investment, including the tech, value-adding production Economic and Technological Development Zones (ETDZs) that constitute the main focus is transforming both its own of this report. and the world’s economy. China’s shift towards high-tech, value-adding production is transforming both its own and While Covid-19 has had an inevitable impact the world’s economy. It is a shift that ETDZs on trade so far in 2020, as the global 4 | economy recovers the Department for companies further their many successes in International Trade looks forward to seeing China. UK-China trade continue its upward trajectory, and stands ready to create new business opportunities across a broad range of sectors. We shall continue to advocate for improved market access and work on developing the business environment for UK John Edwards companies in China, and we will keep Her Majesty’s Trade Commissioner for China working in collaboration with key Department for International Trade stakeholders such as CBBC to help British | 5 EXECUTIVE SUMMARY The China-Britain Business Council’s (CBBC) Within the zone profiles themselves, this In the Zone series provides the latest edition of In the Zone outlines the key information and advice about China’s benefits offered to international companies economic zones, so as to give UK companies looking to set up there, as well as the sectors the knowledge they need when choosing that are particularly strong in each zone and where to best establish a presence in China. a selection of companies already in operation This report – the second in the series – there. mainly discusses Economic and Technological Finally, the report provides in-market insights Development Zones (ETDZs), which focus from two service providers already operating their support on knowledge- and technology- in China, giving them the chance to pass on intensive industries. their expertise regarding what UK companies This report starts by detailing what makes need to know when considering setting up in ETDZs stand out from other economic zones an ETDZ. in China, and also gives an overview of how Making the most of the China opportunity state-level ETDZs have grown and spread means understanding what the different across the country from the 1980s to the offerings of the country’s economic zones present day. mean to your business. With the increasingly Before profiling a selection of ETDZs and prevalent move towards higher value-adding equivalent zones, some key updates about manufacturing in China, the role that ETDZs new Pilot Free Trade Zones and Hainan Pilot play as key drivers of this growth is one that Free Trade Port are detailed, as over the last cannot be ignored.
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