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【Yearly Overview VII for the Commerce Work in 2019】Make Breakthroughs and Innovations, Accelerate and Promote the Construction of Pilot Free Trade Zones and Free Trade Ports

In 2019, the Ministry of Commerce adhered to the guidance of the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, deeply studied and implemented the spirit of the 19th CPC National Congress and the 2nd, 3rd and 4th Plenary Sessions of the 19th CPC Central Committee, unswervingly implemented the major decisions and deployments of the CPC Central Committee on establishing pilot free trade zones and free trade ports, worked with the relevant local governments and departments to build high-quality pilot free trade zones, and accelerated the construction of Hainan free trade port. The Ministry of Commerce has specifically established the Department of Pilot Free Trade Zone and Free Trade Port which is responsible for coordinating and promoting the construction of pilot free trade zones and free trade ports, and promoting positive progress in various tasks.

First, the layout of the pilots was further improved. According to the unified deployment of the CPC Central Committee and the State Council, we worked with the relevant local governments and departments to study and promote the establishment of the new Lingang area of the Shanghai pilot free trade zone, and newly set up 6 pilot free trade zones in Shandong, Jiangsu, Guangxi, Hebei, Yunnan and Heilongjiang and printed and issued the related overall plans. At present, 18 pilot free trade zones have been set up across the country and have achieved the full coverage of China's coastal provinces. We made layouts in border areas for the first time, which is conducive to better providing proactive service and integrating into important national initiatives such as the "Belt and Road" construction, the coordinated development of Beijing-Tianjin-Hebei Region, the development of the Yangtze River Economic Belt, the construction of Guangdong-Hong Kong-Macao Greater Bay Area and the integrated development of Yangtze River Delta.

Second, institutional innovation was further deepened. We implemented the requirement of “granting more powers to pilot free trade zones to conduct reform” according to the 19th CPC National Congress and further advanced the implementation of Several Measures on Supporting Deepening Reform and Innovation in Pilot Free Trade Zones (the State Council [2018] No. 38). These measures have made positive progress and effectively promoted reform and innovation. We promoted and implemented the full coverage of the reform “separating permits from the business license” in all pilot free trade zones, and printed and issued the Notice of the Ministry of Commerce on Several Measures on Supporting the Construction of the China (Hainan) Pilot Free Trade Zone, and the Notice of 18 Departments Including the Ministry of Commerce on Trying Policies in the Other Free Trade Zones in China (Hainan) Pilot Free Trade Zone. We received positive comments from all parties. We revised and released the 2019 negative list of foreign investment access of pilot free trade zones, reduced the number of special management measures to 37, and stepped up pressure tests of opening up in fields such as aquatic product fishing and publication printing.

Third, the dividend of reform and opening up was further released. We summarized the experience of 18 reform pilots, and completed 31 “best practice cases”, which were replicated and promoted throughout the country or used for reference by local governments, including the self-application system for corporate names, the frontal regulatory model of cross-border e-commerce retail import, ,and new power supply service model. A total of 223 institutional innovation achievements were replicated and promoted. The experience of the reform pilots of the pilot free trade zone has been replicated and promoted orderly. A large number of "good seeds of systems" have taken root and sprouted throughout the country, unblocked systematic impediments, solved the development difficulties, promoted the continuous improvement of business environment, and have given full play to the testing, guidance and demonstration role of opening up.

Fourth, accelerate the construction of Hainan Free Trade Port. We made every effort to make positive progress in Hainan Pilot Free Trade Zone. The free trade account system was put into operation. The “single window” of international trade has been basically established. The “fast approval” were implemented in depth. Remarkable achievements were made in the reform of integrating multiple regulations into one. Market entities accelerated their concentration. International openness increased significantly. The risk prevention and control system has been was gradually improved. A good foundation was laid for the construction of the free trade port. At the same time, according to the unified deployment of the CPC Central Committee and the State Council, we drew lessons from the experience of international advanced free port construction, matched the international high-standard economic and trade rules, combined with Hainan's characteristics, embodied Chinese characteristics, highlighted trade freedom and investment freedom, studied and put forward policies and institutional systems for Hainan free trade port.

From January to October 2019, about 217,000 enterprises and 5,123 foreign investment enterprises were newly established in the original 12 pilot free trade zones. The actual utilization of foreign capital was 108.39 billion yuan, and the total amount of imports and exports was 3.2 trillion yuan. Less than four thousandths of China’s land area achieved 14.4% and 12.5% of China’s foreign investment and imports & exports volume respectively. .

Next, the Ministry of Commerce will continue to implement the decisions and deployments of the CPC Central Committee and the State Council, make every effort to promote the construction of opening-up highlands such as the pilot free trade zones and free trade ports, and make new contributions to building the higher level open economic new system.