Qinzhou Free Trade Port Area: Vigorously Develop International Logistics

written by Wang Gongqing / translated by Xu Zhiliang

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Qinzhou Free Trade Port Area: Vigorously Develop International Logistics

written by Wang Gongqing / translated by Xu Zhiliang

International logistics as an emerging operating mode of modern logistics plays an increasingly important role in international trade and global resource allocation. In this context, Qinzhou Free Trade Port Area （QFTPA）, located in Guangxi Zhuang Autonomous Region, China, is committed to vigorously developing the logistics industry.

Since the establishment of QFTPA in 2008, efforts have been made to create a significant hub featured by efficient operation, complete functions, more openness for international logistics and resource allocation in the Asia-Pacific region. In terms of the synergy between QFTPA and ASEAN, QFTPA is endowed with unique regional advantages and policy support: in geographical location, it is situated in the junction of Southwest China, South China, as well as ASEAN; in policy, the nontariff policy for CAFTA is aimed at eliminating the trade barriers and reducing the tariff costs of trade, and the goal of QFTPA is also to lower the logistics costs of trade by implementing intra-extra policies, etc. By the end of 2015, the negotiations on an upgraded version of CAFTA came to an end, increasing the number of goods in the agreed non-tariff commodity list between China and ASEAN. Thus, QFTPA will embrace a new-round of development opportunities.

Since 2008, China has been committed to building Guangxi into an international passageway towards ASEAN to support the construction of the Belt and Road. In this case, it is a new historic mission for Beibu Gulf Economic Zone to establish a logistic base which will be favorable for the ASEAN-China cooperation and opening up. QFTPA is playing a crucial role in the bonded logistics system of Beibu Gulf Economic Zone.

The 1st phase of QFTPA was successfully completed in December 2009, and in December 2015, QFTPA was also listed as one of the first batch of demonstration logistics parks in Guangxi Zhuang Autonomous Region. “From now on, Qinzhou will serve as the transfer station and connection base for more economic and trade cooperation between ASEAN and China, as well as trade between the intraextra regions, and QFTPA will also be import part of international logistics chain,” said the incumbent Vice-Governor of Guangxi Zhuang Autonomous Region Zhang Xiaoqin. QFTPA has become a special area supervised by the customs in inland China, with a high degree of openness, most complete functions and most preferential policies. For instance, if export processing enterprises enter into this area, components and parts from different countries will be directly assembled, thus to reduce the enterprises’ costs of circulation of goods and save the export and import tariffs and value-added taxes for products.

Under the Thirteenth Five-Year Plan of China, Qinzhou will comprehensively participate in the construction of the Belt and Road and create a shipping logistics belt, port cooperation belt, portsurrounding industry belt, as well as port city alliance based in Qinzhou and oriented towards 47 port cities in the ASEAN region.