Qingdao FTZ leads the way in institutional innovations

Shandong province in eastern China is promoting strategic upgrading of the China (Shandong) Pilot Free Trade Zone (FTZ) through a plan issued in January aimed at reform and innovation.

The Qingdao FTZ, the largest and most piloted section of the area, has introduced 252 institutional innovations, including 79 national firsts, surpassing the national average for FTZs.

Over the past three years, the FTZ has achieved an annual average growth rate of 51 percent in the actual use of foreign capital, recording over 100 billion yuan ($15.6 billion) and 200 billion yuan in foreign trade imports and exports, respectively. Its establishment has increased the number of new market entities and tax-paying entities by 50 percent and 28 percent, respectively.

The Qingdao FTZ is driving the development of shipping and logistics by implementing a "bus-like" air cargo route to Japan and South Korea, a regular fast ship route to Incheon, and zero transfer intermodal transportation among ports, land, and rail. It has also introduced a new logistics model for the Yellow River Basin, resulting in a more than 20 percent reduction in inland cargo owners' logistics costs.

The Qingdao Shipping Trade and Financial Integration Innovation Base, a critical industrial park for shipping, trade, and finance in Northeast Asia, is under construction. The base is projected to cost 24 billion yuan, employ 20,000 people, and help the city establish itself as a leading modern marine hub.

The Qingdao FTZ recently established a state-owned operation group for talent and business services, the first in Shandong province, showing its commitment to greater success.

The China (Shandong) Pilot Free Trade Zone Qingdao Area. [Photo/WeChat account: qdxihaianfabu]