Pilot free trade zones have opened in several major Chinese cities over the past five years. Among them, the Henan Pilot Free Trade Zone opened last year, in the hopes of expanding business opportunities – both at home and abroad. But as CGTN's Li Jianhua reports, some foreign enterprises are suggesting that central China's free trade zone should lower their business costs and boost efficiency.  

Walking into any Chinese supermarket, you never fail to find wines. Figures show China imported over 200 million litres of wine in the first quarter of 2018, worth nearly 800 million US dollars. But why?

DONG FEI SALES CONSULTANT, GREVINO "Living standards are getting higher these days, and Chinese people are paying more attention to their health. Drinking a certain amount of wine each week is believed to lower cardiovascular disease, so wine sales are increasing day by day."

For that reason and others, China's wine imports have grown by 32% year on year. And behind all of this is China's pilot free trade zones. To meet the growing demand for wine, as well as other products, these zones can now be found all over the country, each with a different focus. In particular, the focus for Henan's Pilot Free Trade Zone is logistics, due to its location in central China. An American wine company came here five years ago. And with China's free trade zone program, importing wine into China is easier than ever.

DUAN ZHAOHANG MARKETING & DISTRIBUTION DIRECTOR, GREVINO "The biggest perk is the establishment of the so-called 'integrated free trade zone' in airports under the scheme. This means I can store my wines in a warehouse when they arrive without having to pay customs fees. I can wait until my customers come to pick up their wines to do that. This could lower my business costs."

But Duan suggests the costs for storing her commodities in a free trade zone should be lower. The authorities, on the other hand, say prices are determined by the market, but the government can help with facilitating customs clearance.

ZHANG YANMING DIRECTOR, HENAN COMMERCIAL DEPARTMENT "The warehouses are developed and managed by certain companies. The prices are determined by the market, but the government can give some guidance, unless the government offers subsidies, and it's not easy to interfere with the market. But as for customs clearance, the government will do more to make it easier."

Zhang adds China is planning to collaborate with foreign companies to introduce their advanced management skills.

LI JIANHUA ZHENGZHOU, HENAN PROVINCE "China established its first free trade zone on the mainland five years ago to expand business opportunities. The Henan pilot free trade zone, in particular, opened last year - with a focus on facilitating logistics because of its location in central China. But some foreign enterprises hope the free trade zone can do more to boost its work efficiency and lower costs. LJH, CGTN, ZHENGZHOU, HENAN PROVINCE."