China Free Trade Zone Tax Benefits
Hong Kong is not a free trade area per se, but a free market without trade barriers. To learn more about free economic zones and free zones, you can consult this link. A free trade area (FTZ) is an economic zone in which companies can operate according to specially defined regulations. In particular, they offer preferential customs clearance and initial importation without payment of customs duties. The locations of the free zones are not chosen at random, but there is a strategic and long-term plan for each zone. Originally, free trade zones were created as test sites to facilitate import-export and international trade and to offer duty-free import, export and storage. The first such zone in the world was established at Shannon Airport in Ireland to promote trade at this transit point. Heihe: cross-border energy resources, food culture, trade, logistics, tourism, healthcare and financial services. You can enjoy many benefits of using a free zone, such as lower taxes, lighter and more efficient processes, the ability to hire Chinese employees, and much more. Kaifang: outsourcing of services, medical tourism, tourism, cultural trade, design, art trade and manufacture of logistics equipment, agricultural processing and related business activities. Kaifang FTZ website: www.kfftz.gov.cn/ protection of intellectual property (IP) is one of the biggest concerns of foreign players participating in the Chinese market.
China presented a set of guidelines to strengthen intellectual property protection in free zones. This includes the establishment of a dedicated Intellectual Property Office within the free zones to deal with intellectual property claims related to patent, trademark and copyright issues, while encouraging and supporting professional institutions to provide services such as INTELLECTUAL PROPERTY mediation and law enforcement assistance. Wuhan: International trade, financial services, logistics, R&D, design and emerging industries such as, but not limited to, optoelectronic information, advanced manufacturing and biomedicine. The free movement of capital is another fundamental factor in unleashing business momentum. It includes three key aspects: a facilitated cross-border renminbi settlement process, free capital inflows and exchanges, and support for cross-border financial activities. Let`s take the example of the Lingang Free Zone. This expansion of China`s first free zone in Shanghai fully supports cross-border financial activities by enabling eligible institutions to offer cross-border bonds and conduct cross-border securities investments and insurance transactions, demonstrating China`s clear intention to expand the financial opening of its markets in the new era. Industries of interest: International trade and finance The area covers 121 sq.km. and is divided into four areas: Xiangyang: high-end equipment manufacturing, new energy vehicles, logistics, trade, product exhibition, e-commerce, big data, cloud computing and other services. 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 Free Zone website: www.china-lyftz.gov.cn free zones now account for a significant share of China`s foreign trade and investment. In the first seven months of 2020, China`s free trade zones contributed $400 billion (13.5 percent) to foreign trade and attracted more than 3,300 new foreign enterprises, accounting for $13.3 billion (16.8 percent) of foreign investment in China.
Ningbo: international petrochemical and shipping hub for wet bulk trade. (Oil and Gas) Ningbo Free Zone website: Caofeidian www.nftz.gov.cn/col/col1229026785/index.html Port Zone: international trade in raw materials, port and maritime services, energy storage and distribution, and manufacture of high-end equipment. Our advice – Even if your company is already present outside an area in China, research how free zones might be relevant to your business. With the expansion and increasing liberalization of free zones, being present in an existing FTT could put you at the top of the queue if new liberalization measures directly affect and benefit your sector. At Belt and Road Advisory, we offer incorporation services in various free zones and advise you on which one is best for you. Liangjiang New Area: New Technologies and BiotechnologiesLiangjiang FTZ Website: enljxqfy.chinacourt.gov.cn/index.shtml While free trade zones can certainly offer benefits to some companies, they should be carefully considered in advance. It is worth inquiring with local authorities and an informed service provider about what is and is offered in each free zone of interest. .
