Key points on high-quality growth at Yunnan pilot FTZ

A press conference was held on June 18 to interpret the recently-issued “opinions of Yunnan government on supporting the high-quality development of China’s Yunnan pilot free trade zone (FTZ)".

The pinions include 23 items in 6 aspects, focusing on reform autonomy, financial openness, finance and tax, land planning, and international talents.

I. Autonomy 

More autonomy to the Yunnan pilot FTZ 

• With greater autonomy, the pilot FTZ will be eligible to do manage economy at the prefectural level.

• The Yunnan pilot FTZ will speed up smart government and create a first-class int’l business environment.

• The FTZ will pilot initiatives and major reforms.

II. Industry

Industrial synergies at the Yunnan pilot FTZ

Trade upgrade

• Awards to traders conducive to local economy
• Pooling funds for small and medium exporters
• More preferential policies to AEOs
• Processing more goods for border trade
• Piloting quarantine for cross-border animals
• Internet plus border trade
• Trial management via collective registration 

Int’l capacity cooperation

• Drawing key links of manufacturing into the pilot FTZ
• More involvement in building overseas industrial parks
• Foreign traders investing in 3rd-party organizations

• Measures for constructing smart ports

Economic grouping at headquarters

• Special care will be given to key enterprises, foreign-funded institutions and major investment projects in the pilot FTZ, so as to speed up the economic agglomeration at the FTZ headquarters.

Investment invite-in

• The pilot FTZ will carry out investment promotions.

III. Finance

Financial opening-up at the Yunnan pilot FTZ

Awards to new financial institutions
• 5 million yuan will be awarded to each of the new and wholly-foreign-owned financial institutions or overseas financial branches.
• 3 million yuan will be awarded to each of the new joint financial ventures.
• 1 million yuan will be awarded to each of the branches of the new joint financial ventures. 

Cultivating financial services
• Financial institutions are encouraged to provide long-term credit funds for high-tech industries, cross-border capacity cooperation in the FTZ.

•Multinational companies will carry out cross-border financial services.

IV. Finance and tax

Financial aid for the Yunnan pilot FTZ

• Special funds are to be set up for the pilot FTZ construction. This year, Yunnan will allocate 600 million yuan for the industrial projects.

• Preferential tax policies will be implemented to reduce taxes and fees.
• The pilot FTZ will set up regional companies for capital operation, adopting measures to bolster innovation and development.

V. Land

Yunnan to make preferential land policy for pilot FTZ

• Enterprises in the FTZ are encouraged to acquire industrial land via flexible transfer, long-term lease, lease and concession.

• Intensified use of the existing industrial land in the pilot FTZ will no longer be subjected to price increase.

• Preferential policies on land use will be adopted for industrial projects with priority development and intensive projects.

VI. Talents
Yunnan to train more talents for pilot FTZ development

• The Yunnan pilot FTZ will be built into a special hub for talents.
• Special favor will be give to the pilot FTZ on plans for talent training and inviting-in.

• Financial aid will be given to elites and talents working in the pilot FTZ.
• Yunnan will set up communication platforms for talents and firms in the pilot FTZ.

[Further reading]

Incepted in August 2019, the Yunnan pilot FTZ has three areas that cover 119.86 square kilometers. The Kunming area is 76 square kilometers (including a 0.58-square-km bonded zone), the Honghe area has 14.12 square kilometers, while the Dehong area occupies 29.74 square kilometers.

By Gateway reporters