Free Trade Zone: 20 months on, FTZ helps NE China revive

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One of China's free trade zones continues to make it easier for companies to do business at home and abroad. In just 18 months, the Shenyang zone has grown, tremendously, with many more companies wanting in. CGTN's Xu Xinchen shows us why.

Hu Fang oversees the daily operation of a trading company registered in the Shenyang Area of Liaoning Province's Pilot Free Trade Zone.

With vast information technology at their disposal, the firm has accumulated resources overseas. With a few code lines, the firm can help its products gain exposure in global markets.

HU FANG, EXECUTIVE DIRECTOR EO INTERNATIONAL "We are helping products and companies from Shenyang reach global markets — providing overseas promotions in 48 languages."

It was not until the free trade zone's opening, however, that the company discovered they could sell heavy duty equipment in overseas markets.

Shenyang has been a manufacturing base for China and the city's free trade area also has policies geared toward that.

HU FANG, EXECUTIVE DIRECTOR EO INTERNATIONAL "We decided to set up a firm in the free zone area due to its convenient administrative services. Such as the single-window system."

Free Trade Zones across China offer companies a one-stop solution for business issues such as industry and commerce registration, as well as duty declarations, and they also cut red tape for investments.

EO is not alone in finding inspiration from the FTZ. Real estate developer I&F Group owns land in Shenyang but did not realize its construction potential. Now its land has been included in the free trade area.

LIU XIAOMING, CEO SHENYANG FIVE CONTINENTS CITY "We designated 5,000 square meters to build it into a bonded warehouse, which will follow custom standards for supervision."

With 3 billion yuan already invested, Liu is betting on the FTZ initiative to help turn its project around.

LIU XIAOMING, CEO SHENYANG FIVE CONTINENTS CITY "Our cross-border e-commerce center is right next to Shenyang's future land port. I believe we can play an important role in helping reach markets in northeast Asia as well as central and Eastern Europe."

Now, Shenyang's Free Trade area is home to almost 20,000 companies — over 70% of the total number registered across Liaoning's three free trade areas.

ZHANG SHICHENG, ADMINISTRATION OF SHENYANG AREA OF CHINA (LIAONING) PILOT FREE TRADE ZONE "The cluster of companies pouring into the free trade area in such a short period signals that companies and the market want to show their confidence in revitalizing northeastern China."

While companies in Liaoning's free trade zone focus on promoting Chinese goods globally, many also want to expand imports to meet rising domestic demand.

For example, a Sino-Russia food corridor has been established in the Yingkou Area of Liaoning's Free Trade Zone. That aims to import as much as 20 million tons of Russian crops a year. Xu Xinchen, CGTN, Liaoning Province.