China expands pilot FTZs to 23, adding Inner Mongolia

China has expanded its pilot free trade zones (FTZ) to 23 with the establishment of the China (Inner Mongolia) Pilot Free Trade Zone, according to a plan made public by the State Council Thursday.

The plan grants the new pilot FTZ in north China's Inner Mongolia Autonomous Region greater reform autonomy and encourages pioneering, integrated and differentiated exploration across a wider range of areas and at a deeper level.

It specifies 19 reform and innovation measures, including developing border trade in an innovative way, strengthening international logistics services, improving the efficiency of technology transfer and application, and expanding external exchanges across multiple fields.

The establishment of the China (Inner Mongolia) Pilot Free Trade Zone is an important strategic move to further deepen reforms comprehensively, advance high-standard opening up, and promote high-quality development, according to the plan.

The plan aims to build the pilot FTZ into a hub for information exchange, transportation and logistics, allocation of resources and production factors, sci-tech innovation and industrial cooperation in key areas, connecting domestic and international markets while radiating to neighboring regions.

The FTZ will fully leverage its role as an important bridgehead for China's opening up to the north, and strive to become a high-level FTZ featuring convenient investment and trade, a sound innovation ecosystem, clustering of competitive industries, and vibrant international exchanges.

The pilot FTZ covers 119.74 square kilometers and comprises three subzones in Hohhot, capital of the autonomous region, Manzhouli, a northern border city, and Erenhot, a land port on the China-Mongolia border, each tasked with differentiated functions and the development of industries tailored to local conditions.

China had earlier established 22 pilot FTZs in areas including Shanghai, Guangdong, Liaoning, Hainan, Shandong and Beijing. The previous addition was the China (Xinjiang) Pilot Free Trade Zone in 2023.