Master Plan for China (Jiangsu) Pilot Free Trade Zone,
The establishment of China (Jiangsu) Pilot Free Trade Zone (hereinafter referred to as JSFTZ) is a critical decision made by the CPC Central Committee and the State Council, and a strategic move to drive reform and opening up in the new era. The Master Plan details construction of high-quality JSFTZ with high standard.
I. Overall requirements
（i）Guiding ideology. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the spirit of the CPC 19th National Congress as well as the second and third plenums of the 19th CPC Central Committee. We will implement the five-sphere integrated plan and the four-pronged comprehensive strategy, and remain committed to the underlying principle of pursuing progress while ensuring stability. We will adopt a new development vision, ensure high-quality development of China’s economy, and pursue structural reform in the supply-side as our core task while implementing major national strategies and supporting the overall reform and opening up strategy. We will emancipate our minds and take bold steps in innovation to develop JSFTZ into a new highland of reform and opening up in the new area.
(ii) Strategic positioning and development goals. Taking institutional innovation as our core assignment, and replicable and spreadable experience as basic requirements, we will comprehensively implement the central government’s requirements of deepening industrial restructure and innovation-driven development strategy. We will pursue high-quality and comprehensive reform and opening up, accelerate the construction of Belt and Road joint, and strive to build a pioneering zone for developing open economy development and a model for real economy’s innovative development and industrial transformation and upgrading. After three to five years of reform exploration, we will build capacity to produce globally-competitive fruits underpinned by institutional innovation following advanced international rules. We will work diligently to enhance quality, efficiency and driving force of economic growth through reforms, striving to build JSFTZ into a high-quality, high-standard free trade zone featuring convenient trade and investment, intensive high-end industrial cluster, sound financial services, reliable regulatory system, and outstanding spillover effect.
II. Location Layout
(i) Implementation area. JSFTZ, covering an implementation area of 119.97 square kilometers, consists of three areas， such as 39.55-square-kilometer Nanjing Area, 60.15-square-kilometer Suzhou Area (including 5.28-sqaure-kilometer Suzhou Industrial Park Comprehensive Bonded Zone) and 20.27-square-kilometer Lianyungang Area (LFTZ) (including 2.44-square-kilometer Lianyungang Comprehensive Bonded Zone).
In terms of development and utilization of land, JSFTZ shall comply with laws and regulations on land use, ecological environmental protection, and urban and rural planning. It shall, in addition to land use overall plan and urban-rural plan, conform to relevant requirements for economical and intensive land utilization. Furthermore, JSFTZ shall abide by relevant provisions of laws and regulations such as the Law of the People’s Republic of China on the Administration of the Use of Sea Areas and the Law of the People’s Republic of China on the Protection of Marine Environment.
(ii) Functional division. Nanjing Area will be built into a leading demonstration area globally for independent innovation, a model for modern industries and an important platform for open cooperation. Suzhou Area will evolve into a world’s first-class high-tech industrial park, an all-round open highland, a globally-competitive innovation highland, a high-end industrial highland and modernized governance system. Lianyungang Area will aim at developing into an important international transport hub for Asia and Europe, an open portal for pooling high-quality resources, and a platform for exchange and cooperation between countries (regions) along the Belt and Road.
III. Main tasks and measures
(i) Accelerating the transformation of government functions
1. Creating world’s first-class business environment. Reforms in separating business license and management license, and integrating multiple certificates into one will proceed. These changes will ensure that enterprises shall open within two working days, complete registration of real estate within three working days, and obtain construction permit for industrial projects within 30 working days. Efforts will go a notch higher in strengthening the building of commercial judicial teams, and develop alternative resolution mechanisms such as international commercial arbitration and mediation institutions. This will further consolidate the fundamental position of competition policies.
2. Optimizing administrative functions and processes. Economic and social management powers of Jiangsu province will be delegated to JSFTZ. Efforts will be made to implement reforms in the administrative law enforcement system, fully implement “Internet + Government Services” model, and deepen reforms of online review and approval (service) and facilitate tax and payment mechanisms. We will explore new accreditation processes and high-tech enterprises’ models.
3. Innovating mechanisms for oversight both during and after the handling of matters. We will establish and improve supervisory mechanisms during and after project implementation, underpinned by credit supervision, which complements the negative list management initiative. Joint efforts will be undertaken with relevant authorities to review foreign investment security. For the implementation of primary responsibility system for market entitles, we will establish a market-based social responsibility reporting and traceable system in fields such as production safety, resource conservation and environmental protection among others.
(ii) Deepening investment reforms
4. Promoting liberalization and facilitation of investments. We will fully implement across the board the management system based on pre-establishment national treatment and negative list while establishing an information reporting system for foreign investment. We will implement the review and fair competition system to ensure equitable access to all market entities in accordance with laws. Efforts will be made to launch domestic investment projects under new regulations suitable for foreign-funded venture capital enterprises and equity-invested enterprises. We will ensure that foreign-invested enterprises transfer or settle income from capital accounts and use it for domestic equity investment in accordance with laws. We will nudge foreign investors to solely fund educational and vocational training institutions that are astute in business, and establish air freight business sales agency. JSFTZ administration will be responsible for reviewing and approving the qualification of investors’ materials submitted through domestic and foreign talent intermediaries based on integrated standards. These materials will be submitted and recorded by the provincial human resource and social security department.
5. Improving investment promotion and protection mechanisms. We will establish and enhance the foreign investment service system while refining the working mechanisms such as promotion, project tracking services and complaints. Using its statutory powers, JSFTZ will be encouraged to formulate foreign investment promotion policies. Efforts will be made to promote market-oriented investment promotion model, establish enterprise–style investment institution, and launch the “green channel” for major foreign-funded projects. Furthermore, we will improve and perfect local government’s integrity system for investment promotion.
6. Strengthening overseas investment cooperation. We will transform overseas investment management, and develop JSFTZ into a window and a comprehensive service platform for enterprises that are going global. Support will be given to the establishment of national overseas investment service centers. When JSFTZ-based enterprises fall into external debts due to offshore guarantees for domestic loans in investment in foreign non-trade entity projects, they shall register external debts and incorporate macro-prudential management of cross-border financing. We will support the development and implementation of overseas RMB funds in accordance with laws and regulations.
7. Vigorously developing the headquarters economy. We will further improve policies to encourage development of the headquarters economy and consequently developing clusters. Efforts will be made to promote the agglomeration of enterprise cross-border financial settlement centers as well as centralized operation and management of foreign exchange funds of the JSFTZ-based multinational corporation headquarters. The cross-border financial settlement centers will be given access to the domestic inter-bank foreign exchange market for transactions upon approval. We will support qualified multinational enterprise groups in setting up cross-border RMB capital pools and conducting centralized management of their RMB funds.
(iii) Facilitating trade transformation and upgrading
8. Enhancing trade facilitation. We will accelerate the development of world-class “single window” platform to facilitate international trade. We will farther data and information collaboration, simplification and standardization, mutual recognition of supervision through comprehensive efforts of law enforcement from railway, customs, port and other departments. We will explore an international mutual recognition mechanism for inspection, quarantine and traceability of food and agricultural products. Admissibility scope of goods and institution from third-party inspection will be expanded. We will optimize the customs clearance process at ports of entry while promoting the systematic construction of the average release and clearance time of goods. We will undertake reforms in time taken during resolution in patent dispute, guarantee and release samples of export goods while supporting banks that provide high-quality services for genuine and legitimate trade settlement.
9. Innovating a comprehensive trade regulatory model. We will promote the integrated development of airports, ports, railways and customs special supervision areas outside JSFTZ. JSFTZ-based enterprises will be encouraged to carry out cross-border e-commerce import and export business and gradually realize JSFTZ application of cross-border e-commerce retail import policies in accordance with laws and regulations in the comprehensive bonded zones. We will support the construction of International Mail Exchange Bureau (exchange station) and International Express Mail Regulatory Center. Moreover, the early warning and rapid response regulatory system for quality and safety checks of imported goods will be improved. We will support the establishment of ports used for importing finished automobile, drugs and biological products within the JSFTZ in accordance with laws and regulations. We will establish a centralized platform to regulate biomedicine and public service. We will conduct risk assessment of inbound biological materials while optimizing the quarantine access process for cells and tissue slices among other basic materials as well as the quarantine inspection process of special goods used in global collaborative R & D trials of biomedicines. We will support the establishment of bulk cargo futures bonded delivery warehouses in customs special supervision areas and bonded supervision sites to carry out bonded delivery of futures and warehouse receipt financing among other business. The customs department will be allowed to accept software declaration.
10. Promoting innovative development of service trade. We will establish and improve the inter-departmental coordination mechanism for innovative development of service trade, and conduct reform for administrative review and approval of service trade as well as centralized management of services. We will establish a foreign-based promotion center for service trade, and a financing guarantee system for small, medium and micro-sized service trade enterprises. A new service trade center synonymous with digital trade will be created. We will promote and develop innovation in traditional Chinese medicines and western medicines and the cross-border use of the RMB in service trade.
(iv) Deepening the open innovation in the financial industry
11. Expanding the opening of financial sector to domestic and foreign investors. We will support legally the establishment of financial institutions in accordance with laws and regulations, including Chinese-foreign joint venture banks, private banks, as well as insurance, securities, public funds and licensed asset management institutions. Support will be extended to the establishment of insurance asset management companies as well as the development of offshore insurance businesses. Efforts will be made to facilitate foreign exchange for investment and financing. We will encourage foreign shareholders of JSFTZ-based listed companies to directly participate in the placement of shares and secondary public offering while supporting foreign employees to directly participate in the equity incentive plan of domestic listed companies. Systems of risks identification and systemic financial risk prevention will be enhanced. We will strengthen efforts to combat money laundering, terrorist financing and tax evasion.
12. Strengthening financial support for the real economy. On the basis of effectively preventing risks, we will carry out supply-chain finance in a prudent and orderly manner, and launch trials to explore bond and equity financing support tools. We will support trials to delegate the registration of written-off foreign debt to bank agents, and expand trials to facilitate the foreign exchange settlement and payment of income from capital account. We will develop green financial products and services in accordance with laws and regulations while encouraging insurance companies to innovate products and services to provide guarantee for energy and chemical industries.
13. Advancing financial support for sci-tech innovation. We will establish the two-way cross-border equity investment funds. We will launch pilot projects to support government-owned funds in exiting investment in seed-and early-stage sci-tech enterprises, and explore related exit and decentralized profit mechanisms. Efforts will be made to launch trials on qualified domestic investment enterprise (QDIE) policy. The JSFTZ-based fund towns will be encouraged to provide private investment fund services in accordance with laws and regulations.
(v) Advancing innovation-driven development
14. Supporting innovation and development in manufacturing industry. Attention will be paid to forward-looking and leading industry. We will build a new-generation national Internet engineering center, a national innovation platform for integrated circuit design and service industry and a national health and medical big data center. We will promote the pilot for the construction of 5G commercial cities and national pioneering areas of Internet of Vehicles (IOV). Under the premise of risk control and in accordance with laws and regulations, we will actively launch the maintenance and remanufacturing of used eco-friendly, high-tech mechanical and electrical products with high added value while exploring a demonstration project of green remanufacturing for high-end equipment. Piloting the medical device registrant system will be carried out, in which JSFTZ-based medical device registrants will be allowed to contract medical device manufacturers in Jiangsu to produce products.
15. Promoting the agglomeration of modern service industry. We will build a pioneering area for the development of health services. Under the framework of relevant institutional arrangement, service providers in Hong Kong, Macao and Taiwan regions are allowed to establish wholly-owned medical institutions. We will accelerate the approval of large-scale innovative medical devices and innovative drugs such as proton radiotherapy systems and surgical robots. We will launch demonstration projects for the achievement transfer and transformation of cutting-edge medical technology research projects and major national science and technology major project for new drug innovation. We will facilitate luxury travel such as cruise ships and yachts. The cultural relics and artworks will be stored and displayed in the comprehensive bonded areas within JSFTZ, building a branded market-oriented international exhibition platform.
16. Creating open innovation carriers. We will establish a high-quality industrial innovation platform while encouraging foreign investors to establish research and development centers. The construction of national cooperative innovation parks, collaborative innovation centers, and foreign-based innovation institutions will be advanced to create an open and innovative ecosystem. We will promote interaction between open innovation platforms (including state-level development zones) and JSFTZ.
17. Improving the intellectual property rights protection and utilization system. The construction of intellectual property right protection centers will be strengthened. Efforts will be made to perfect the intellectual property financial innovation system, innovate intellectual property financing products, intellectual property assessment mechanism , the risk sharing mechanism of pledge financing, and the convenient and efficient mechanism of pledged property disposal. The reforms for the ownership, disposal and usufruct of service inventions will be launched. We will support foreign intellectual property service agencies in setting up and opening related businesses within JSFTZ
18. Optimizing the market allocation mechanism of innovative factors. We will explore pilot reforms in international talent management, and facilitate the entry and exit, residence and permanent residence of foreigners who work and start businesses in JSFTZ. We will open a green channel for foreign talents, establish international mutual recognition system of vocational qualifications, and ease restrictions on hiring high-level and urgently needed foreign professionals. We will pilot JSFTZ “one -card” system to meet housing, children’s enrollment, medical care, social security and other needs for high-end foreign talents. Technical personnel from Hong Kong, Macao and Taiwan regions and other countries will be allowed to work in JSFTZ. We will diligently improve talent cross-border financial services while creating new models for development, utilization and supervision of state-owned construction land.
(vi) Actively supporting the national strategies
19. Accelerating the construction of “Belt and Road” joint. We will support the establishment of multimodal transport centers and a single-contract-based multimodal transport system. The JSFTZ’s railway convergence points will be allowed to open up to foreign countries. We plan to establish railway container depots and bulk cargo distribution centers. The construction of foreign-based logistics base will be accelerated to facilitate international transportation. In addition to building a new Eurasian continental land bridge, an electronic data exchange channel of land-sea multimodal transportation, we will strengthen institutional cooperation with port enforcement agencies of countries (regions) along the Belt and Road. The China-Europe express train (Lianyungang) will be incorporated into the China-Europe Safe and Smart Trade Routes pilot program. Responsibility of recording foreign-funded international ship management business will be delegated to Jiangsu province. We will strengthen the “Belt and Road” international cooperation on production capacity, support cooperation between JSFTZ-based enterprises and related national institutions, and participate in the construction of overseas economic and trade cooperation zones and production capacity cooperation zones.
20. Promote the integrated development of the Yangtze River Economic Belt and the Yangtze River Delta. We will strengthen cooperation of provinces and cities along the Yangtze River Economic Belt and the Yangtze River Delta. We will build a high-level international collaborative innovation community in JSFTZ while jointly fostering advanced manufacturing clusters and technological innovation highland. The Yangtze River “ecological eye” multi-source sensing system will be improved. We will accelerate the construction of modern industrial clusters and push the optimization of the layout and coordinate the development of major industries in the Yangtze River Delta region.
IV. Security mechanism
We will support and strengthen the CPC leadership over reform and opening up, and carry the CPC leadership through the entire process of JSFTZ construction. We will strengthen bottom-line thinking and risk awareness, improve risk prevention, control and disposal mechanisms, ensuring regional stability, security and efficiency, while effectively safeguarding national and social security. Under the overall coordination of the Inter-ministerial Joint Meeting of the State Council on Pilot Free Trade Zones, we will arouse local departments’ initiative to ensure the implementation of various pilot reform tasks for the construction of high-quality JSFTZ with high standards. Jiangsu province should improve the working mechanism, build a streamlined and efficient management system of JSFTZ with clear defined rights and responsibilities, strengthen talent training, and build a high-quality management team. On the other hand, it should advance local legislation and create a fair, transparent and legal environment with sound systems. Three areas in JSFTZ should carry out detailed work, fully implement regulations, strictly exercise supervision and strictly enforce laws and regulations. Relevant departments should delegate their administrative powers to JSFTZ and give it full autonomy of reform. Among reform policies and measures in the master plan, the amendments of existing laws or administrative regulations shall be in accordance with prescribed procedures. As for major issues, JSFTZ should seek the CPC Central Committee and the State Council for instructions.
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