Since the reform and opening up, China has set up a variety of special open economic zones. By taking the lead in policy system innovation, China has led and driven the reform and opening up and development of other regions and even the whole country, and created China's economic miracle in its extensive participation in economic globalization. A new section of China (Shanghai) Free Trade Zone for the new area near the port was officially unveiled on August 20, 2019.
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The Central government has high expectations for the new area near the port of China (Shanghai) Free Trade Zone. First, it should be based on high standards. With reference to the management of special economic zones, we will grant greater authority to the management of independent development, reform and innovation, and build a "high-standard international Free Trade Zone" to become a special economic zone with greater international market influence and competitiveness. Second, to carry out strategic missions. On the basis of actively serving the "One Belt and One Road" construction and the national strategy for the development of the Yangtze River Economic Belt, we will serve and integrate the integrated development strategy of the Yangtze River Delta, "strengthen collaborative innovative development with the Yangtze River Delta", and "drive the new round of reform and opening up of the Yangtze River Delta". Third, focus on high-end resource allocation. We should select key areas where national strategies are needed, the international market is in great demand, and there is a high demand for openness, but other regions are not yet in a position to implement them. We should implement opening-up policies and systems that are highly competitive in the international market, and "build an open industrial system that is competitive in the international market." Fourth, explore the mode of special customs supervision. We will build the Yangshan Special Comprehensive Bonded Zone and implement customs supervision policies focusing on safety supervision and trade liberalization and facilitation at a higher level.
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Over the past year, how has the construction of the new area near the port of China (Shanghai) Free Trade Zone gone? The Management Committee lists the construction achievements of the new area:
-- According to T he Overall Plan of China (Shanghai) Free Trade Zone for New Areas N ear the Port issued by the State Council, the specific policy and institutional innovation tasks have been decomposed into 45 projects and 22 projects have been formulated, more than half of which have been completed. A series of reform, opening up and innovation policies have been introduced in an intensive manner.
-- The formation of a system of investment and trade liberalization and facilitation in line with international rules was accelerated. An open policy system framework aiming at free investment, free trade, free capital, free transportation and free personnel is emerging.
-- Yangsan Special Comprehensive Bonded Zone was officially put into operation, marking up Hong Kong and other internationally recognized and competitive free trade zones, and establishing a new customs supervision mechanism.
-- High-end resource elements are gathering faster in the new area near the port. The system of notifying enterprise names has been implemented, and the number of newly registered enterprises, fixed asset investment, industrial investment, industrial output value and other economic indicators in the zone have increased rapidly. Notable progress has been made in infrastructure development, talent introduction, offshore business, airport and port linkage, and investment in high-end enterprises.
It is not easy to make such achievements in just one year.
Comparing with the overall construction plan and construction target, there is still a long way to go for the new area near the port.
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Covid-19 is spreading globally, trigger a deep recession of the world economy, inverse globalization undercurrent, some American politicians looking for with our country economy decoupling, extreme pressure on me to put more high-tech enterprises and research institutions on the export control list of entities, limited technology exchanges and cooperation to me, to promote enterprise out of our country, threats to the supply chain stability, contain I value chain upgrade. Against this background, the importance of upholding an open world economy, supporting economic globalization and firmly following the path of opening up has become more prominent.
In the face of the changing world economy, some people misread" domestic economic circulation”as " inner loop " which is out of international markets and the global economic system. And this coincides with the US’s quest to decouple from China's economy, forcing the country down a closed path. The "internal circulation model" of the government, enterprises and residents is a theoretical assumption that separates the domestic circulation from the international circulation. It is a closed economic model without considering the export and external demand.
China, which has been fully integrated into the global economic system and deeply engaged in economic globalization for more than four decades, no longer has the micro-foundation to seal off the "internal cycle". The establishment of the China (Shanghai) Free Trade Zone for the new area near the port is a demonstration to the world of China's determination to open wider and support economic globalization. Facing the new economic situation in the world, the construction of the new area near the port must hold high the banner of opening up, take the establishment of an open system with high international competitiveness as its own responsibility, and firmly take the road of open development.
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In order to ensure their advantages in international economic competition, the United States and other developed countries are still seeking to reform international economic and trade rules and establish high-standard economic and trade rules, which cover an increasingly wide range of fields. They are also trying to extend the content of free trade agreements from border rules such as tariff and non-tariff measures to post-border rules. China is also actively participating in the reform of international economic and trade rules. The new area near the port bears the historical mission of exploring international economic and trade rules of elevation standards.
The new area near the port in the open economy system can't be satisfied with what already achieved, it need to track high levels of economic and trade rules change trend, in the digital trade, competition neutrality, emerging areas such as environmental and Labour and rules after the border, the bold exploration innovation, form a more open, safe and efficient, risk control system environment, to create a new experience of establishing high level open system.
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In order to seek its own development on the basis of reasonable planning, the new area near the port must put the national strategy of service in the first place.
China started its industrialization late and has developed rapidly. It has established a complete and independent manufacturing system and become the world's largest manufacturing country. However, it is not big but not strong, and its independent innovation capacity is weak. Nowadays, global technological and industrial competition is becoming increasingly fierce. Developed countries have implemented the strategy of "reindustrialization" to seek the return of manufacturing industry, and some developing countries have also actively participated in the global industrial redivision of labor. China faces great challenges in the new round of development, and transformation and upgrading are imminent.
Relying on Shanghai's relatively strong industrial base and the Yangtze River Delta and other advantages, the new area near the port relies on institutional innovation and takes the lead in creating a high-level and open institutional environment, and establishes an industrial system with strong international competitiveness. It will radiate the development of the Yangtze River Delta and The Yangtze River Economic Belt and help China become a manufacturing power.
(Sang Baichuan is professor of the National Institute of Openness, University of International Business and Economics, and dean of the Institute of International Economics)
Article source: https://m.thepaper.cn/newsDetail_forward_8796308?from=singlemessage
