Lingang counts on trade and investment gains among key growth drivers
Lingang has undergone tremendous transformation in the past three years since the establishment of the Special Zone of China (Shanghai) Pilot Free Trade Zone.
This is partly thanks to an institutional system offering more freedom in trade, investment, capital, transportation and employment, as well as greater ease in sharing information.
Carrying the image and functions of a modern, open and innovative new city, Lingang is known for its smart ecology that integrates industry and city, making it suitable for business and living.
A cutting-edge industrial cluster with key breakthrough technologies has also been established in Lingang after three years of development.
“It’s a hub for the world,” said Peter Foo, president and CEO of UOB (China), which will open a branch in Lingang next month.
Moreover, the coastal city located at the southeast end of Shanghai has also created a world-class, market-oriented, legal and international business environment.
In terms of trade freedom, the Yangshan Exclusive Comprehensive Bonded Zone has been built. After the completion of two phases of customs closure operations, the third phase of expansion is being promoted. In addition, innovative business forms such as bond research and development, bond maintenance, bond manufacturing, and bond display trade are encouraged.
The value added tax exemption is implemented for transport, loading, unloading and storage services in the bonded area.
In terms of investment freedom, the first foreign-funded financial management joint venture and the first 100%-owned fintech company by a multinational financial group were established in Lingang. In addition, high-level China-foreign cooperation has been implemented in the education sector.
In terms of freedom of capital, Lingang has spearheaded a high-level pilot project for opening up cross-border trade and investment, as well as foreign exchange management reform. The draft eases requirements for cross-border investment and financing, while the scale of overseas lending by non-financial companies is also lifted.
It also allows parent companies and leasing subsidiaries to share the amount of foreign debt, pilots a single registration of foreign debt, cancels the special account for foreign direct investment in yuan capital, applies tax exemption. registration for domestic reinvestment of foreign investments. companies and establishes a “white list” for the facilitation of cross-border settlements.
Lingang is also undertaking a pilot project to integrate local and foreign currencies into a cross-border capital pool, enable cross-border transfer of trade finance bank assets, non-performing loans and other credit assets, and implementation of international syndicated loans linked to sustainable development. yuan.
In terms of transport freedom, Lingang has taken the initiative to develop the coastal transport business of non-national flag vessels, built the Yangshan International Transit Container LCL Public Service Center, and established a exchange of empty containers in Northeast Asia.
In 2021, Yangshan Port recorded container throughput of 22.8 million equivalent units (TEUs), helping Shanghai Port become the world’s largest container throughput for 12 consecutive years.
In terms of freedom of employment, Lingang has taken the initiative to explore the establishment of an e-port visa mechanism, offers work residence permits for foreign talent for up to five years, directly recommends top foreign talent to apply for permanent residency and a “green pathway” and shortens the timeframe from the initial 180 working days to 90 working days for reviewing and approving applicants.
In terms of data facilitation, Lingang has completed its security assessment of China’s first cross-border vehicle enterprise data flow and established an Internet-connected intelligent vehicle data storage center.