context: Institutional opening is Beijing's top policy initiative to remove non-tariff barriers, open up services and align domestic standards and rules with high-level international trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. In June 2023, the State Council released 33 measures to foster institutional opening in free trade zones and the Hainan free trade port. Seen as a key to boosting trade growth, acquiring advanced know-how and responding to Western decoupling, more efforts in institutional opening can be expected.
CCTV (China Central Television) announced 33 measures in line with institutional opening have been put into practice, noting that some of the measures may be expanded further to other regions. The article outlines the implementation of rules in
- goods trade
- 12 out of the 33 pilot measures are related to goods
- exemption of customs duties for aircraft, ships and their parts that temporarily left the country for repair but returned to the Hainan free trade port, regardless of whether value-added activities had taken place
- 92 such exemption cases were processed, saving enterprises C¥4 million
- allowing the import of remanufactured products
- before the pilot program, the PRC limited and prohibited some imports of remanufactured products
- 62 types of remanufactured products are now allowed for import with an annual estimated trade value of C¥500 million
- e.g., reciprocating piston engines and automotive transmissions
- services trade
- introduced the nataional negative list of cross-border services trade
- opening up areas such as professional qualifications of natural persons, professional services and finance
- efforts made by the Beijing FTZ (free trade zone)
- recently updated the list of recognised overseas professional qualifications to increase the number of professions from 82 to 122
- professionals holding relevant certifications can practice in Beijing and provide professional services
- selected 16 high-recognised professional qualifications and matched with corresponding intermediate titles
- matched corresponding advanced titles and introduced talents for seven urgently needed overseas professional qualifications
- actively promote the standardisation and mutual recognition of corporate talent evaluation criteria with overseas partners
- accelerate the expansion of openness in sectors such as the internet, telecommunications and healthcare
- recently updated the list of recognised overseas professional qualifications to increase the number of professions from 82 to 122
- introduced the nataional negative list of cross-border services trade
The article notes that the FTZs are exploring other 'institutional innovation' based on their respective strengths and positioning
- Tianjin and Fujian are exploring in the digital economy field
- Zhejiang and Jiangsu are exploring innovative development of the whole industry chain in key commodities and biomedicine
Cui Weijie 崔卫杰 Chinese Academy of International Trade and Economic Cooperation vice dean notes that besides the common missions assigned by the centre, FTZs will also undertake differentiated exploration of reform and liberalisation based on major national strategic tasks.