The Dalian Free Trade Zone is the largest free trade zone in northern China. /CGTN
The Dalian Free Trade Zone (FTZ) is the largest of its kind in northern China. And the Regional Comprehensive Economic Partnership (RCEP) free trade agreement has helped it attract new investment, advance technological development and provided it with more regulatory flexibility.
Every penny counts in the world of global trading. For Yu Xiuying, general manager of Jtekt Bearings (Dalian) Co. in the Dalian Free Trade Zone, the benefits of the RCEP agreement go beyond tariff concessions for their foreign customers. RCEP has offered a timely boost to the firm's recovery from the COVID-19 pandemic.
"Under the RCEP framework, our customers in the member countries no longer need to pay for the import taxes. This has significantly boosted our competitiveness," said Yu.
"Take our business in South Korea for instance, sales figures have doubled compared to the same period last year. And there's been a surge in quotations from our clients in Singapore and Thailand in the first quarter," Yu added.
Yu Xiuying (left), general manager of Jtekt Bearings (Dalian) Co., talks to CGTN's Guan Yang. /CGTN
In a few years' time, tariffs on more than 90 percent of goods traded within the 15-member bloc are expected to drop to zero under the RCEP mechanism. This aligns with the promise to rebuild supply chains that were severely disrupted during the pandemic.
Dalian FTZ piloted reform and opening-up in northeast China, with more flexible business regulations and minimal red tape.
The first quarter of this year saw China's first methanol-to-hydrogen and hydrogen refueling service station being opened there. Green energy projects normally come with licensing and administrative complexity, but this project was materialized quite smoothly.
"From site selection and design to construction and final commissioning, the FTZ has been very supportive through the whole process," Wang Haibo, general manager of Sinopec North Energy (Dalian) Co., Ltd. told CGTN.
Wang added that they were able to set a benchmark for a safe, reliable, green and intelligent solution to promote methanol-to-hydrogen and hydrogen refueling service nationwide with the help of the FTZ.
According to RCEP's common rules of origin, product components from any member country are treated equally in terms of tariff concessions.
Experts believe this could help increase sourcing options in the region and create more opportunities for small and medium-sized enterprises to integrate themselves into regional supply chains.
"The country's first RCEP business center was put into service in our FTZ," Sun Shiwei, director of the economic development bureau of Dalian FTZ, told CGTN.
The Dalian FTZ integrates multiple functions including a base of RCEP enterprise headquarters, an economic and trade center and an enterprise service center.
"We are glad to see that the industrial co-agglomeration has attracted many downstream companies to set foot here," said Sun.