The building of the China (Beijing) Pilot Free Trade Zone (BFTZ) is a major decision by the Central Committee of the Communist Party of China (CPC) and the State Council, and an important strategy to promote reform and opening up in the new era. This plan is formulated to ensure the standard and quality of BFTZ.
I. Overall requirements
1. Guiding thought
To become a pacesetter of reform and opening-up in the new era, BFTZ will do the following:
- Follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era;
- Implement the guiding principles from the 19th National Congress of the CPC and from the second, third, and fourth plenary sessions of its 19th Central Committee in full;
- Coordinate efforts to implement the five-sphere integrated plan [1] and the four-pronged comprehensive strategy [2];
- Follow the general principle of pursuing progress while ensuring stability;
- Apply the new development philosophy;
- Promote high-quality development;
- Take the initiative to serve and integrate into major national strategies;
- Build a new open economy at a higher level; and
- Make opening-up a catalyst for reform, development, and innovation.
2. Strategic positioning and development goals
With the focus on promoting institutional innovation and replicable and scalable practices, BFTZ will fully implement the Chinese central leadership's strategies on innovation-driven development and on coordinated development of Beijing, Tianjin, and Hebei. Its mission is to create and maintain a global center for scientific and technological innovation in Beijing; expedite the establishment of the pilot zones for greater openness in the services sector and for a digital economy; and build a high-level opening-up platform for coordinated development of Beijing, Tianjin, and Hebei.
BFTZ will be granted more powers to conduct reform and explore in-depth experimentation about differentiated policies and practices. In line with advanced international rules, it will make more moves toward further systemic opening in rules, regulations, management, standards and other systems. This will make it possible, in three to five years, for BFTZ to strengthen its capacity for original innovation, technological innovation, open innovation, and collaborative innovation and create more internationally competitive institutional innovations. This will accumulate practical experience for expanding opening-up. BFTZ will strive to become a high-standard and high-quality free trade zone with a trade- and investment-friendly environment, an excellent business environment, a first-class innovation ecosystem, a concentration of high-end industries, advanced financial services, active international economic exchanges, safe and efficient regulation and great radiation effects and locomotive roles. BFTZ will strengthen reform in greater coordination with the reform of the rest of Beijing. All of BFTZ's successful pilot reforms will be implemented in the Zhongguancun Science Park first before being rolled out in other places in Beijing.
II. Layout
1. Size
BFTZ covers an area of 119.68 square kilometers with three areas: the Science and Technology Innovation Area (31.85 square kilometers), the International Business Service Area (48.34 square kilometers), including the Beijing Tianzhu Comprehensive Bonded Zone (5.466 square kilometers), and the High-End Industries Area (39.49 square kilometers).
The development and utilization of BFTZ will comply with the relevant laws and regulations on land use, environmental protection, and municipal planning, come in line with Beijing's land-use plans, conserve land and use it efficiently.
2. Functions
The Science and Technology Innovation Area will focus on the next generation of information technology, biology and health, and science and technology services. It will be a digital economy pilot area, a global venture capital center, and a pilot area for the reform of the management system for science and technology.
The International Business Service Area will focus on digital trade, trade in cultural products, business conventions and exhibitions, medical and healthcare, international delivery logistics, and cross-border finance. It will build a pilot airport economic innovation zone.
The High-End Industries Area will focus on business services, international finance, cultural and creative sectors, biotechnology, and health. It will boost industrial application of scientific and technological achievements and gather strategic emerging industries and international high-end functional institutions.
III. Main tasks and measures
1. Advancing trade and investment liberalization and facilitation
Deepening investment reform
BFTZ will fully implement the "pre-establishment national treatment and negative list" management system for foreign investment. It will explore ways to introduce foreign examination institutions and international textbooks for science and engineering. It will improve foreign investment promotion, project tracking services, and complaint response.
BFTZ will be encouraged to formulate investment and industrial promotion policies within the statutory authority. It will improve comprehensive services and risk control and prevention as it goes global; overseas investment facilitation; and foreign exchange management procedures for enterprises' overseas investment.
Promoting trade facilitation
BFTZ will expand the air traffic rights, including the fifth freedom of aviation at Beijing Capital International Airport and Beijing Daxing International Airport. It will continuously expand the service function and application of the "single window system" to facilitate international trade. It will import medicines via cross-border e-commerce retailing on a pilot basis with approval secured according to procedures. It will moderately relax the supervision of small-dose special chemicals for medical R&D purposes and support the establishment of stocking warehouses for these chemicals within its borders. R&D institutions in BFTZ will be allowed to import equipment for scientific research in compliance with policy. BFTZ will further expand its function as a vehicle import port. Trade in services is the priority of the Beijing Tianzhu Free Trade Zone.
Innovating in the management of trade in services
BFTZ will pilot the negative list management model for cross-border trade in services. Wherever possible, restrictions on access to trade in services will be relaxed to the greatest extent possible. BFTZ will provide visa facilities to high-end talents in R&D, practice, exhibition, exchange, and training. BFTZ will innovate in its regulatory service model to trace and supervise the enterprises, transaction documents, personnel, funds and commodities within its borders.
2. Deepening the opening-up and innovation in the financial sector
Opening up the financial sector further
BFTZ will pilot the practice of single account for both CNY and foreign currencies. Banks in BFTZ will be allowed to issue overseas CNY loans to CNY bank settlement accounts (non-resident accounts) of overseas institutions. BFTZ will research and promote the integration of securities investment channels in China for overseas institutional investors as well as the use of an NRA account by foreign investors to handle their securities investment in China. BFTZ will approve more foreign banks as qualified securities investors and funds trustees. It supports the setting up of private banks for cultural and creative industries.
BFTZ encourages qualified Chinese banks to develop cross-border financial services and provide cross-border financial services for real trade. It will promote the facilitation of cross-border CNY business and foreign exchange business in key industries. It will explore the granting of more cross-border financial options to Zhongguancun startups, thus allowing them to independently determine cross-border financing methods, amounts, and timing under a macro-prudential framework. It will innovate in enterprises' external debt management to make it possible for non-financial enterprises in the Zhongguancun Science Park to fully convert their external debt. BFTZ supports the establishment of domestic and overseas private equity parallel funds through market-based methods in accordance with laws and regulations. It will facilitate qualified private equity and asset management institutions to make overseas investments. It supports multinational companies to set up finance companies in compliance with laws and regulations by establishing qualified investment companies in China. BFTZ will also pilot one-time foreign debt registration for its enterprises, instead of registering them one by one.
Promoting Fin-Tech innovation
BFTZ welcomes businesses to launch major Fin-Tech projects on payment clearing, registered trusteeship, credit rating, asset trading, and data management. It supports technology-enabled upgrading of financial infrastructure and services. It will fully leverage the pilot regulatory mechanism for Fin-Tech innovation and carry out Fin-Tech innovation on the premise that it serves the real economy, risks are under control and consumers' legitimate rights and interests are fully protected. BFTZ welcomes the Digital Currency Research Institute of the People's Bank of China to launch a Fin-Tech center. It will build a sovereign digital currency pilot zone and a digital financial system. It will establish a standard system of trade finance blockchain to strengthen innovation in regulation based on the trade finance blockchain platform of the People's Bank of China. Additionally, BFTZ will build a pilot zone for Fin-Tech application scenarios and set up a release mechanism for application scenarios.
Ensuring that the financial sector better serves the real economy
BFTZ will allow its companies to carry out cross-border transactions of physical assets, equity transfer, and the increase of investment at the China Beijing Equity Exchange and other institutions in accordance with laws and regulations. BFTZ supports its auto finance companies to carry out cross-border financing based on the premise of compliance with laws and regulations and risk control and apply for permission to be engaged in sideline insurance agency business in accordance with relevant regulations. BFTZ will simplify procedures of financial bonds issuance and credit asset securitization in auto finance companies or Panda bonds issuance by their foreign shareholders. It will allow its registered parent companies and their subsidiaries to share their corporate external debt quotas. BFTZ will entrust the competent authorities of Beijing Municipality with the approval of its registered domestic pilot financial leasing companies.
3. Promoting innovation-driven development
Improving full process talent services
BFTZ will explore policies for attracting different types of talents at different levels. It will pilot the quota management system for foreign talent, and explore the hiring of them based on recommendation. It will improve approval procedures for non-Chinese nationals' work and residence permits. It will establish a one-stop service window and station for foreign talents both online and offline. It will explore Recognition of Prior Learning (RPL), allowing qualified professionals with overseas professional qualifications in finance, architectural design, or planning to obtain work and residence permits in accordance with regulations and work as registered professionals within its borders, with their work experience outside of China being recognized in China. For the medical expenses incurred by overseas talents, a pilot program of real-time settlement between hospitals in BFTZ and international insurance will be launched. BFTZ will explore ways to improve services for the protection of labor rights under non-standard employment forms.
Strengthening the protection of intellectual property rights
BFTZ will explore tax policies that encourage technology transfer. It will also explore the establishment of a fair IP evaluation mechanism by improving the registration system for IP pledges, the risk-sharing mechanism for IP pledge financing, and the mechanism for pledge disposal. BFTZ will set up an IP trade center to prudently explore IP securitization according to standards. It will pilot the establishment of permanent representative offices of foreign patent agencies. BFTZ will explore the system for protecting intellectual property rights such as patents, copyrights and trade secrets of international digital products. It will give full play to the role of the China (ZGC) Intellectual Property Protection Center, and establish a protection system for speedy patent examination, authorization, and IP defense.
Creating a world-class ecology for innovation and business startups
BFTZ will allow its researchers to own or have the long-term right to use the technological achievements tied to their positions. It will explore market-based empowerment, achievement evaluation and income distribution. It encourages multinational companies to set up R&D centers and carry out reverse innovation. It will promote the transformation of Chinese testing standards into international common standards. It will explore ways to improve security services for scientific research institutions to access websites at the forefront of international academia. It will promote the construction of standardized factories and improve the market-based land supply system for industrial purposes. BFTZ will explore a model for multiple-purpose land use, under which based on the premise that uses and functions of a lot are not in conflict, a lot serves multiple purposes and accommodates buildings used for different purposes (except for residential purposes), land grant premium is calculated according to the floor areas of different uses, and land ownership rights cannot be divided or transferred. BFTZ will also explore land supply by industrial chains.
4. Creating a new environment for the development of the digital economy
Enhancing the international competitiveness of digital trade
BFTZ will refer to advanced international standards in exploring rules for developing digital trade in line with China's conditions. It will strengthen regulatory cooperation in the cross-border protection of data, and promote international mutual recognition of digital certificates and electronic signatures. It will explore the formulation of rules in key areas such as information technology security, data privacy protection, and cross-border data flows. In order to regulate trading behavior, BFTZ will explore the creation of standards for data rights, data assets, and data services, as well as pricing, settlement, quality certification and other service systems for data transaction flows. It will also explore digital trade statistics monitoring.
Encouraging the development of new business forms and models in the digital economy
BFTZ will accelerate construction of the next-generation information infrastructure and explore secure and convenient channels dedicated to international internet data. It will employ digital technologies like blockchain to systematically regulate cross-border transactions, legal compliance, and the implementation of technical standards and ensure that cross-border trade multilateral cooperation is paperless, dynamic, and standardized. Based on the application of blockchain technology, BFTZ will congregate the information and credit data of sophisticated and cutting-edge manufacturing companies to build an efficient and convenient customs clearance mode. It will explore the building of a regulatory mechanism that allows related institutions to test their new products and businesses within a controllable scope.
Exploring the establishment of an international information industry and digital trade port
Keeping risks under control, BFTZ will pilot real-name authentication of software, identification of data origin labels, and import and export of data products. It will build a digital copyright trading platform to promote the development of IP protection as well as IP financing. BFTZ will conduct efficient digital inspection of the import and export of software and internet services. It will actively explore third-party authentication to improve the capability of companies to protect their data. It will also explore the establishment of a website filing system to satisfy the needs of overseas customers.
5. Promoting the high-quality development of competitive industries
Assisting efforts to build Beijing into a center for international exchanges
With a focus on serving China's overall diplomacy, BFTZ will increase the capacity to serve major national events. It encourages international organizations to locate within its borders. It will pilot a cross-border capital pool in both Chinese and other currencies. BFTZ supports qualified multinational conglomerates to regulate and concentrate their capital in both Chinese and other currencies from their members in China and elsewhere, and implement two-way macro-prudential management of their cross-border capital flows. BFTZ will pilot the integration of consumption and pre-boarding. Moderate competition is encouraged and duty-free shopping policy will be improved. BFTZ will create a well-functioning cluster type convention and exhibition complex around Beijing Capital International Airport. The level and capacity of the China International Fair for Trade in Services will be raised so that it will become China's main platform for international trade in services.
Meeting consumer demand for high-quality cultural products
BFTZ will become an international film, television and animation copyright trade platform, explore cultural IP insurance, and establish a precious stones and jade exchange, and strengthen the Belt and Road Cultural Exhibition and Trading Center. Eligible foreign-funded companies will be allowed to display, auction or trade global cultural artworks (not including cultural relics). BFTZ encourages the return of overseas Chinese cultural relics to China by working to adjust its current import tax policy. It will explore the creation of new guarantee and supervision models for international high-end art exhibits in the comprehensive bonded area.
Developing the medical and health industry into a global leader through innovation
BFTZ will simplify the approval process for Chinese bio-medical researchers and developers to carry out international R&D cooperation. It will ensure the rapid customs clearance of urgently needed medical devices and R&D materials, reagents, and equipment. It will speed up the review and approval of medical devices that are urgently needed for clinical use and where China has no similar registered products to meet the clinical need for them. BFTZ will carry out cross-border telemedicine and other clinical medical research. Medical institutions in BFTZ can conduct medical research on frontier technologies in stem cells' clinical use based on their own technical capabilities and in accordance with relevant regulations. BFTZ will pilot decentralized clinical trials (DCT). It will also establish the Beijing service stations for medical device innovation and for human genetic resources to speed up the transformation of the medical industry.
Improving aviation services
BFTZ will promote the interactive development of Beijing Capital International Airport and Beijing Daxing International Airport to make them a world-class aviation hub. It will improve the regulation of bonded aviation materials to reduce their operation costs. It will pilot the general maintenance agreement-based clearance of corporate aircraft, making owners, operators, and entrusted agencies of corporate aircraft eligible for application. For aviation components that comply with the Harmonized Commodity Description and Coding System (HS), BFTZ will include them in a separate China HS code directory.
6. Exploring new approaches to the coordinated development Beijing, Tianjin, and Hebei
Supporting the building of Beijing Municipal Administrative Center with high standards
BFTZ will pilot relatively centralized administrative licensing. It encourages its financial institutions to allocate their assets globally to make Beijing a global wealth management center. It will support the establishment of national certified emission reduction and other carbon trading centers. To support related enterprises' financing and development, BFTZ will explore the securitization of cross-border green credit assets and the investment and financing of green bonds and green equities to support the financing and development of related companies. It supports qualified financial institutions to set up franchise agencies. Under the guidance of national financial regulators, BFTZ supports Beijing Municipal Administrative Center to establish a joint laboratory for financial risk monitoring and early warning and regulatory innovation for financial risk monitoring and early warning in the Beijing-Tianjin-Hebei region. BFTZ will also simplify the process of recruiting people with special expertise.
Deepening collaborative development in the industrial chain
BFTZ will become a new platform for Beijing-Tianjin-Hebei industrial cooperation, innovate in cross-regional industrial cooperation, and explore the establishment of diversified industrial coordination and cooperation modes such as headquarters-production centers, development of joint industrial parks, and integral relocation. BFTZ is encouraged to work with Tianjin, and Hebei pilot free trade zones in pursuing the Belt and Road Initiative together. It will cooperate with FTZs within and outside of China for shared growth in a steady and orderly manner.
Promoting the formation of a unified open market
Technology market integration and cooperation between Beijing, Tianjin, and Hebei will be strengthened. BFTZ will retain the qualification of its high-tech enterprises which have entirely moved out within the validity period. Step by step, BFTZ will make its administrative service standards consistent with those of Tianjin and Hebei pilot FTZs. This means that within the region, administrative services will be commonly accessible and the standards and results of inspection and testing will be mutually recognized and accepted. The establishment of a joint credit mechanism will be explored for Beijing, Tianjin, and Hebei pilot FTZs, in order to improve the integrated Beijing-Tianjin-Hebei credit reporting system.
7. Accelerating the transformation of government functions
Continuing to build a world-class business environment
BFTZ will make further progress with the reform to separate the business license from the certificates required for starting a business. It will subject new economic models to prudent and inclusive regulation, and explore strengthened interim and ex-post supervision of new technologies and products. It will decentralize the approval of international express delivery (agency) licenses. It will carry out the reform to ensure government regional assessment, sample plots, notification and commitment, and government supporting services for enterprises' investment projects. It will explore the abolition of construction drawing review (or the reduction of the scope of such review) and carry out the reform to implement the notification and commitment system and the lifelong designer responsibility system.
Strengthening diversified rule of law protection
BFTZ will allow well-known overseas arbitration and dispute resolution institutions, which have registered with the judicial authorities of the Beijing Municipal Government and reported their registration to the judicial authorities of the State Council for the record, to set up business institutions within its borders. These institutions will arbitrate civil and commercial disputes in international commerce and investment. BFTZ supports and guarantees the application for and enforcement of interim measures such as property preservation, evidence preservation and behavior preservation by both Chinese and non-Chinese parties before and during an arbitration process in accordance with the law. It will work to improve the diversified dispute resolution mechanism of well-connected and coordinated notarization, mediation, arbitration, administrative adjudication, administrative review, and litigation. It welcomes the founding of the International Commercial Dispute Prevention and Settlement Organization. It will also make full use of existing trial resources to provide a green channel for financial proceedings.
Improving risk prevention for an open economy
BFTZ will implement a hierarchical and classified regulatory system based on credit. With a focus on key areas such as investment, trade, the internet, biosecurity, the ecological environment, cultural security, personnel entry and exit, counter-terrorism, counter-separation, and public morality, BFTZ will strengthen international investment security review and improve anti-monopoly review, industry management, user authentication, behavioral auditing and other management practices. It will improve financial risk monitoring and early warning and strengthen efforts to counter money laundering, terrorist financing and tax evasion, and continuously improve its ability to prevent and control financial risks. BFTZ will also plan for the worst-case scenario, rely on information technology to create new risk research, judgment, prevention and control means, and establish joint risk prevention and control mechanisms.
4. Government support
BFTZ will uphold and strengthen CPC leadership over reform and opening up throughout the whole process. It will pursue a sound, holistic approach to national security, be well prepared for the worst-case scenarios. and be more aware of risks. BFTZ will strengthen risk prevention and control and response, maintain national and social security, and forestall regional and systemic risks. With the planning and coordination of the State Council Inter-Ministerial Joint Conference for the work on free trade zones, the Beijing Municipal Government will arouse the enthusiasm of localities and departments, attain all pilot reform tasks, and make BFTZ a high-standard and high-quality free trade zone.
Beijing must improve its working mechanisms and build a streamlined and highly efficient management system for BFTZ with well-defined rights and responsibilities. It will enhance talent training to build a high-caliber professional management team. It will improve its legislation to create a just, transparent and well-established rule of law environment. It will assume its principal responsibilities, strengthen monitoring and early warning, conduct in-depth risk assessment, and formulate work plans to effectively prevent and defuse major risks. It will establish a sound mechanism that allows for mistakes in institutional innovation in BFTZ. Beijing will make distinctions between the three pairs of mistakes[3], and encourage bold trial and error. Beijing will coordinate COVID-19 prevention and control and the high-quality development of BFTZ by working hard to prevent imported cases and local resurgence of infections, so as to minimize the impact of the epidemic.
Beijing Municipality and relevant departments will delegate relevant administrative power to BFTZ in a timely manner and in accordance with the law. They will improve supporting policies for BFTZ and ensure reform measures are implemented in BFTZ. All the areas of BFTZ will make meticulous efforts, adopt concrete systems, and carry out strict oversight and strict enforcement of Party discipline and state laws.
Where any reform policy and measure proposed in this plan necessitates the revision to existing laws or government regulations, the relevant procedures shall prevail. Major issues shall be reported to the CPC Central Committee and the State Council for instructions in a timely manner.
[1] A reference to the plan to promote coordinated economic, political, cultural, social, and ecological advancement.
[2] A reference to the strategy of comprehensive moves to finish building a moderately prosperous society in all respects, deepen reform, advance law-based governance, and strengthen CPC self-governance.
[3] Distinctions should be made between the following cases: mistakes due to a lack of experience in pushing pilot reform programs, and deliberate violations of the law and CPC discipline; mistakes due to trying out things not specifically banned by higher-level authorities, and violations of the law and CPC discipline with full knowledge of the prohibitions; unintentional mistakes for the good of development, and violations of the law and CPC discipline for personal gain.
(All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.)