Zhu Zhisong, a deputy to the National People's Congress and executive deputy director of China (Shanghai) Pilot Free Trade Zone Lin-gang Special Area Administration, proposed building a more competitive policy system and gathering more high-end elements with institutional advantages in Lin-gang Special Area.

Zhu made the proposal while attending the plenary session of deputies to the third session of the 13th National People's Congress from Shanghai held on May 22.

As one of the three major tasks assigned to Shanghai by the central government, Lin-gang Special Area has made significant achievements since its establishment in August last year.

Special comprehensive bonded area

Yangshan Special Comprehensive Bonded Area was officially unveiled on May 16 and is the only area of its kind in the country.

Innovations were made in the special bonded area's supervisory system to implement opening-up policies and mechanisms which are competitive worldwide.

To that end, unnecessary trade supervision, permits and other processes will be eliminated.

The imported goods can directly enter the Yangshan Special Comprehensive Bonded Area as long as they abide by laws and regulations. No special inspections or quarantine are required.

Goods circulation will be free in the area, and interval circulation will only need to be declared once.

According to Zhu, Yangshan Special Comprehensive Bonded Area will implement open policies and institutions that make it more competitive in the international market.

"Lin-gang speed"

At present, 30 of the 49 key tasks that have been identified by the Ministry of Commerce for Lin-gang have been completed, 16 are in the planning stages, and three are currently being carried out.

A total of 2,102 projects have been negotiated and 261 projects have been signed with Lin-gang since its establishment, involving a total investment of 212.5 billion yuan ($29.8 billion).

Despite the outbreak of the COVID-19, the total social investment in fixed assets in Lin-gang Special Area in the first quarter reached seven billion yuan, a year-on-year growth of 20.5 percent. Industrial investment was a significant driving force, bringing in 5.6 billion yuan in investment, a year-on-year growth of 318 percent.

Open policies

The introduction of a series of policies has accelerated opening-up and innovation in Lin-gang.

Lin-gang Special Area, together with the Shanghai Head Office of the People's Bank of China, Shanghai Bureau of the China Insurance Regulatory Commission, Shanghai Bureau of the China Security Regulation Committee, and the Shanghai Municipal Financial Regulatory Bureau, announced several measures to help Lin-gang promote financial openness and innovative development on May 8.

According to the measures, subsidiaries of foreign institutions, Chinese Banks and insurance companies will receive help in setting up foreign-controlled wealth management companies in Lin-gang. Overseas financial institutions will receive help in participating in the establishment and investment of financial management subsidiaries of commercial banks in the area. The policies also help foreign investors establish foreign-owned or wholly-owned securities companies, fund management companies and futures companies in Lin-gang.

Huihua Financial Management Co Ltd, the first joint venture financial management firm in China, set up operations in Lin-gang on May 8.

Next steps

"Constructing the Lin-gang Special Area and granting it greater management authority for independent development, reform and innovation" was included in the opinions on accelerating the improvement of the socialist market economy system in the new era issued by the CPC Central Committee and the State Council on May 18.

According to Zhu Zhisong, next Lin-gang Special Area will make efforts to build a more competitive policy system and move faster to conform to international norms, give full play to the institutional advantages of special economic zone and comprehensively increase financial openness, accelerate the gathering of various high-end factors and strengthen the function of resource allocation in the global market.