Qianhai leads free trade zones in rule of law construction, leveraging HK advantages

A photo of the fourth institutional innovation meeting of the National Free Trade Zone Innovation Alliance. Courtesy of Qianhai authority

Qianhai took the lead in 2020 among 58 other China’s free trade zones and areas in constructing a law-protected business environment and leveraging Hong Kong’s strengths when facilitating investors and enterprises to start businesses in countries and regions along the Belt and Road, according to a report released by a top Chinese institute Tuesday.

According to the “Report on National Free Trade Zones’ Institutional Innovation Research 2020” made by the Chinese Academy of International Trade and Economic Cooperation, the Qianhai & Shekou Free Trade Area of China (Guangdong) Pilot Free Trade Zone surpassed others by continuing to carry out innovation on rule of law construction.

Among 20 selected cases of law-related innovation, eight were submitted by the free trade area. It has utilized information technology to offer more convenient legal services for companies and individuals and reinforced cooperation with international legal service institutions and professionals to dock with international rules and regulations to better settle disputes.

Qianhai has formed its risk disposal mechanism for peer to peer lending (P2P) institutions and built a “smart court” that makes full of information technology, according to the report.

Qianhai also settled down to work hand in hand with Hong Kong to tap a larger market overseas, especially in helping enterprises and investors develop in markets along the Belt and Road.

During Tuesday’s release conference, Yuan Fuyong, vice director of the free trade area authority, said the free trade area will consider more of Hong Kong’s interests and take better advantage of Hong Kong’s connection with markets among Belt and Road countries and regions to promote the coordinated development of high-end industries across regions and the “effective flow” of innovation factors.

The investment promotion plans for Qianhai-Harbin Industry Park and Xi’an-Qianhai Industry Park were kicked off at the conference.

Initiated by the free trade area, the National Free Trade Zone Innovation Alliance was set up in 2019. It now includes 58 free trade zones and areas in the country and has built a platform for exchanges and cooperation.