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Steady economic growth hasbecome the priority for majoreconomic tasks in 2015,according to the just completedCentral Economic Work Conference.
Under the new norm of China'seconomic development, the steadygrowth is not a strong stimulation,but is more related to reform andinnovation. Reforming by opening upand making reform the driving forceare becoming the major measures tosupport the steady development ofChina.
Ihe expansion of free trade zonesshows that China is experiencing anew round ofhigh quality openings upand broader reform pilots, which willfurther improve the standard ofChina'seconomic development and will providepowerful support for continuous andsteady economic development.
"The proposal of Tianjin FreeTrade Zone has been under discussionfor more than a dozen times andhas still been perfected and whilesteadily improving. Based on theexperience from the Shanghai FreeTrade Zone, Tianjin will take the city'sand especially the Binhai New Area'sregional development and opening upfeatures into consideration," said LiuEnzhuan, a member ofthe Tianjin FreeTrade Zone proposal drafting team andthe executive head of the Tianjin FreeTrade Research Institution.
Months ago, although the TianjinFree Trade Zone project had not yetbeen approved by then, departmentshad already improved their efficiencyto meet the requirement of free tradezones.
Continuously establishing regionsfor investment and service trades willbecome Tianjin's major attack areasafter the approval.
According to the executivemeeting of the State Council, relyingon the existing new areas and freetrade zones, three such zones will belaunched in Guangdong, Tianjin, andFujian, whose main body will refer tothe Shanghai Pilot Free Trade Zoneand will also integrate regional featuresand implement new piloting contents.
"With the expansion of freetrade zones and innovative areas,residents from the regions will enjoymore diversified advantages directly orindirectly," said Xiao Yaofei, a professorat Guangdong University of ForeignStudies.
The new free trade zones will havedifferent focuses on enforcing financialreform, servicing industrial reform, andinvestment and trade reform. In time,the free trade zones will interact withtrades, skilled people, and visitors innearby regions and will also representand highlight regional features.
According to analysts, theadvantages from this mechanism willbring about great economic stimulationeffects. Relying on the premiumgeographical advantages and the abilityto align with traditional industries,rapid developments will not only befound in foreign trade in provincesalong the coast, but also in industriessuch as education, medication, and old-age care. "The new monitoring model ofthe free trade zones is beneficial tocutting the cost of distribution, sales,and operation ofenterprises. Extendingfrom a dot to a full surface, the freetrade zone is expanding from Shanghaito more regions, serving as a greatdriving force for foreign trade," saidZhang Qi vice director of the overseaseconomic research department of theDevelopment Research Center of theState Council.
Zhang added that driving foreigntrade is helpful to realize the goal ofChina's steady growth. Li Zhijian, thepresident ofthe Asia-Pacific InnovationEconomic Research Institute ofGuangdong, said that driven by freetrade zones, many undeveloped socialservice industries, such as education,medication, and social security, will getopportunities to develop rapidly.
Take old-age care for example:although under a preferentialframework called the Closer EconomicPartnership Arrangement (CEPA), theold-age care industry had been limitedby the influential and advanced old-agecare system and mechanism of HongKong.
Therefore, old-age care developmenthad not been implemented completelyand comprehensively in Guangdongprovince. Thanks to the establishmentof Guangdong's Free Trade Zone, thelimited situation willbe changed.
"People can choose businesses thatare launched in the free trade zones toenjoy more premium and convenientold-age care. This is a predictableoutlook and also a stimulation anddriving force for an existing industrialstructure," said Li.
The expansion of free tradezones will also bring more careeropportunities for high-end talents.Some professionals from enterprisesand some experts thought thatcompared with the Shanghai Pilot FreeTrade Zone's developing explorationin attracting, communicating, andcooperating with high-end talents, thethree newly established free trade zoneshave greater advantages in this industry.
"After the expansion of free tradezones, different places start to explorein different industries according totheir own advantages. The explorationin different industries and regions isbeneficial to realize a higher standard ofopening up and will provide a strongerdrive force for reform," said Zhang.
Zhang expects the reform to bedriven by opening up and the transitionof government functions, ideas, andrelated systems in a high standardopening up process.
Mei Xinyu, a researcher ofInternational Trade and EconomicCooperation in the Ministry ofCommerce, explained that ytheexpansion of free trade zones is animportant reflection of China's deepreforms and opening up standards andcontents of a continuously improvingeconomy.
Although the cost of productionand payment is improving, andthe cost of distribution and sales isdeclining, China can still maintainand even improve its competencythrough simplifying governmentadministration, giving more powerto local governments, and improvingservice emciency.
Mei also considered the free tradezones to be a comprehensive trial inthe global economic competition. Onthe one hand, free trade zone reformswillimprove public services, motivatethe innovative energy, and maintainthe driving force of sustainabledevelopment, which will prove thatChina has the ability to go through thechallenges of high standard economiccompetition.
On the other hand, Chinacan rely on the most advanced andinnovative opening-up economy -the Shanghai Pilot Free Trade Zone toactively be involved in the formulationof international trade regulations,which will push forward China'stransformation from mere bystandersand followers to participYnts andleaders.
Under the new norm of China'seconomic development, the steadygrowth is not a strong stimulation,but is more related to reform andinnovation. Reforming by opening upand making reform the driving forceare becoming the major measures tosupport the steady development ofChina.
Ihe expansion of free trade zonesshows that China is experiencing anew round ofhigh quality openings upand broader reform pilots, which willfurther improve the standard ofChina'seconomic development and will providepowerful support for continuous andsteady economic development.
"The proposal of Tianjin FreeTrade Zone has been under discussionfor more than a dozen times andhas still been perfected and whilesteadily improving. Based on theexperience from the Shanghai FreeTrade Zone, Tianjin will take the city'sand especially the Binhai New Area'sregional development and opening upfeatures into consideration," said LiuEnzhuan, a member ofthe Tianjin FreeTrade Zone proposal drafting team andthe executive head of the Tianjin FreeTrade Research Institution.
Months ago, although the TianjinFree Trade Zone project had not yetbeen approved by then, departmentshad already improved their efficiencyto meet the requirement of free tradezones.
Continuously establishing regionsfor investment and service trades willbecome Tianjin's major attack areasafter the approval.
According to the executivemeeting of the State Council, relyingon the existing new areas and freetrade zones, three such zones will belaunched in Guangdong, Tianjin, andFujian, whose main body will refer tothe Shanghai Pilot Free Trade Zoneand will also integrate regional featuresand implement new piloting contents.
"With the expansion of freetrade zones and innovative areas,residents from the regions will enjoymore diversified advantages directly orindirectly," said Xiao Yaofei, a professorat Guangdong University of ForeignStudies.
The new free trade zones will havedifferent focuses on enforcing financialreform, servicing industrial reform, andinvestment and trade reform. In time,the free trade zones will interact withtrades, skilled people, and visitors innearby regions and will also representand highlight regional features.
According to analysts, theadvantages from this mechanism willbring about great economic stimulationeffects. Relying on the premiumgeographical advantages and the abilityto align with traditional industries,rapid developments will not only befound in foreign trade in provincesalong the coast, but also in industriessuch as education, medication, and old-age care. "The new monitoring model ofthe free trade zones is beneficial tocutting the cost of distribution, sales,and operation ofenterprises. Extendingfrom a dot to a full surface, the freetrade zone is expanding from Shanghaito more regions, serving as a greatdriving force for foreign trade," saidZhang Qi vice director of the overseaseconomic research department of theDevelopment Research Center of theState Council.
Zhang added that driving foreigntrade is helpful to realize the goal ofChina's steady growth. Li Zhijian, thepresident ofthe Asia-Pacific InnovationEconomic Research Institute ofGuangdong, said that driven by freetrade zones, many undeveloped socialservice industries, such as education,medication, and social security, will getopportunities to develop rapidly.
Take old-age care for example:although under a preferentialframework called the Closer EconomicPartnership Arrangement (CEPA), theold-age care industry had been limitedby the influential and advanced old-agecare system and mechanism of HongKong.
Therefore, old-age care developmenthad not been implemented completelyand comprehensively in Guangdongprovince. Thanks to the establishmentof Guangdong's Free Trade Zone, thelimited situation willbe changed.
"People can choose businesses thatare launched in the free trade zones toenjoy more premium and convenientold-age care. This is a predictableoutlook and also a stimulation anddriving force for an existing industrialstructure," said Li.
The expansion of free tradezones will also bring more careeropportunities for high-end talents.Some professionals from enterprisesand some experts thought thatcompared with the Shanghai Pilot FreeTrade Zone's developing explorationin attracting, communicating, andcooperating with high-end talents, thethree newly established free trade zoneshave greater advantages in this industry.
"After the expansion of free tradezones, different places start to explorein different industries according totheir own advantages. The explorationin different industries and regions isbeneficial to realize a higher standard ofopening up and will provide a strongerdrive force for reform," said Zhang.
Zhang expects the reform to bedriven by opening up and the transitionof government functions, ideas, andrelated systems in a high standardopening up process.
Mei Xinyu, a researcher ofInternational Trade and EconomicCooperation in the Ministry ofCommerce, explained that ytheexpansion of free trade zones is animportant reflection of China's deepreforms and opening up standards andcontents of a continuously improvingeconomy.
Although the cost of productionand payment is improving, andthe cost of distribution and sales isdeclining, China can still maintainand even improve its competencythrough simplifying governmentadministration, giving more powerto local governments, and improvingservice emciency.
Mei also considered the free tradezones to be a comprehensive trial inthe global economic competition. Onthe one hand, free trade zone reformswillimprove public services, motivatethe innovative energy, and maintainthe driving force of sustainabledevelopment, which will prove thatChina has the ability to go through thechallenges of high standard economiccompetition.
On the other hand, Chinacan rely on the most advanced andinnovative opening-up economy -the Shanghai Pilot Free Trade Zone toactively be involved in the formulationof international trade regulations,which will push forward China'stransformation from mere bystandersand followers to participYnts andleaders.