Background:

1. From January to July of 2021, the import and export volume of 21 pilot free trade zones in China accounted for 16.6% of the country’s total. It achieved an increase of 42% year-on-year, which is more than 10 percent higher than the national average.

2.  The “dual-circulation” policy is still the mainstream for China’s economic development.

Current Status and Facts:

1. On September 3, 2021, Measures for Promoting Reform and Innovation on Trade and Investment Facilitation in Pilot Free Trade Zones (hereinafter referred to as "the Measures") were issued by the State Council.

2. The regular policy briefing press conference held by the State Council Information Office on the same day provides further info for the Measures.

3. The Measures empower the pilot free trade zones with greater reform autonomy in facilitating trade and investment. It covers several horizontal sectors such as: finance, commerce, import & export, medical and pharmaceutical, as well as transportation (railway and airway). Each measure is assigned to specific government ministries for further implementation and supervision.

4.  Specific contents include:

    a)  facilitating financial service sector to serve for real economy.

    b)  a domestic and foreign currency “all-in-one” bank settlement account system being initiated for pilot.

    c)  permitting online cross-border retail for a portion of medical devices and pharmaceuticals.

    d)  exploring the possibility of a securitization model on intellectual property.

    e)  establishing a better international trading platform for future products in the pilot free trade zones.

Next Steps and Suggestions:

1. More official documents are expected to be released by the supervising ministries to specify further actions. MNCs and foreign investors are likely to benefit from the policies.

2. Retail business opportunity rises for medical device and pharmaceutical enterprises 

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