EYESHENZHEN  /   Opinion

Qianhai's driving force

Writer: Tan Yifan  |  Editor: Jane Chen  |  From: Shenzhen Daily 

When talking about Qianhai & Shekou Area of China (Guangdong) Pilot Free Trade Zone (Qianhai FTZ) — one of the 18 free trade zones across the country — people often associate it with the top urban design, a series of preferential policies and geographic advantages, discussing about how lucky it is to enjoy those benefits and to become what it was expected to be.

Indeed, a 28.2-square-kilometer area situated on the south and west of Nanshan District, Qianhai FTZ has taken the lead among the country’s FTZs through the unique support from both the Central and local government. But its core driving force comes from the idea of creating a business-friendly and people-centered environment.

Five years ago today, the area was set up with a grand vision — to become a producer service center in the Asia-Pacific region, a main base for world trade in service and an international pivotal port. In efforts to achieve the goal, changes have been made.

Institutional reform was carried out first. Administrative procedures including business registration and administrative approval have been streamlined, allowing overseas investors to complete the registration procedure within a single work day. Online services such as tax declarations, invoice applications and legal services are available. To help save costs, a multi-country consolidation system has been adopted, offering cheaper transportation for international cargo and customs clearance has been shortened with the help of the Internet.

As a free trade zone, businesses are allowed to conduct cross-border RMB loans, issue bonds in domestic and overseas markets, set up local and foreign currency fund pools, transfer assets freely, conduct cross-border equity investments and open free trade accounts. To date, over 500 innovative practices have been introduced and 50 were replicated and promoted nationwide.

Situated next to Hong Kong, the area aims to be the gateway for Hong Kong businesses entering the mainland. It knows well that only by creating a Hong Kong-like environment can it openly embrace people from the Asian financial hub. Hong Kong professionals such as certified tax agents, certified public accountants, lawyers, architects and mediators are allowed to work freely in the area. One-third of the land in Qianhai was transferred to Hong Kong enterprises. Hong Kong law and foreign law and legal practices are allowed to be applied in the area to eliminate legal uncertainties for investors.

Within five years, greenways, parks, office buildings and apartments were constructed. Tax breaks, 15-percent tax reductions and low-rent apartments were offered to individuals and businesses. The Qianhai FTZ has not only transformed into a hub attracting billions of dollars, innovative institutions, business savvy and forward-thinking entrepreneurs, but also a place for people to grow and freely build their dreams.

Official figures show that the area contributed 2.4 percent of Guangdong's GDP growth and every square kilometer of land generates added value of over 10 billion yuan (US$1.41 billion). What is behind the number is the belief of creating a business- and people-centered urban area from scratch, which has made Qianhai what it is today.

(The author is head of Shenzhen Daily's Qianhai office.)