From SEZ to FTZ: An Evolutionary Change Toward FDI in China

• Autores: Jiaxiang Hu
• Localización: Handbook of International Investment Law and Policy / Julien Chaisse (aut.), Leïla Choukroune (aut.), Sufian Jusoh (aut.), 2021, ISBN 9811336148, págs. 2395-2416
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • From special economic zones to free trade pilot zones, China has transformed from the provisions of preferential policies to some selected tax enclaves into the making of uniform rules on market access across the country. The general background behind the replacement of SEZs with the current 18 free trade pilot zones is the national treatment requirement observed by China as a WTO Member. What matters more is that China, after all these years’ development, needs to liberalize its market further and provide equal treatment to all participants. The objectives of the FTZ strategy are to expedite the functional transformation of government through streamlining the administrative approval procedures with more transparency and automation, expand the opening up of service sectors by releasing the limitations on market access, promote the reform of administrative regulations on foreign investment, and attract more multinational corporation headquarters to reside in the FTZs. Unlike the free trade area defined by GATT Article XXIV, which is formed by two or more countries (separate customs territories), the FTZs are domestic economic zones with some special missions. The difference between the FTZs and the previous SEZs is that there are no tax breaks or incentive policies designed for FTZs. The mission for FTZs is to experiment on a set of innovative rules to widen market access. As such, experience hence gained shall serve nationwide with new ideas and approaches in the next round of national economic reforms.