Since the introduction of the first Free Trade Zone in Shanghai, the Chinese government has added a dozen more and has plans to further expand and create new zones.
It’s an important brick of the One Belt One Road (OBOR) initiative, where China plans to develop infrastructure and invest in many countries in Africa, Asia, and Europe.
In this article, I explain everything you need to know about Free Trade Zones in China, what benefits these bring, why they were created in the first place, and more.
Definition of a Free Trade Zone
Before we start, you must have a general understanding of what an FTZ is, and what benefits these zones bring.
In short words, FTZs are designated areas where foreign companies can engage in economic activities that are generally not accepted elsewhere in the country.