Arab Press

بالشعب و للشعب
Tuesday, Mar 17, 2026

China extends free trade zone pilot programme to strategic border regions

China extends free trade zone pilot programme to strategic border regions

Underdeveloped rust belt economies also primed to benefit from creation of six new trading zones. The announcement follows last Friday’s dramatic escalation of the US-China trade war.

China will establish new pilot free trade zones (FTZs) in six provinces across the country, extending strategic trials to border regions to help improve trade ties with neighbouring countries and expand the reach of the Belt and Road Initiative.

The move, announced on Monday, also adds free trade zones in underdeveloped provinces, making them more attractive to high quality manufacturing in a bid to support their local economies and help weather the impact from the escalating trade war with the United States.

The six new FTZs are located in the landlocked province in Yunnan in the southwest; Heilongjiang, the northeastern-most province of China’s rust belt; the southern autonomous region Guangxi and the coastal provinces of Shandong, Jiangsu and Hebei.

In the south, Yunnan province borders Vietnam, Laos and Myanmar; while Guangxi also borders Vietnam. In the north of the country, Heilongjiang borders Russia. In addition, Shandong to the east is one of China’s major gateways for trade and investment flows with South Korea and Japan.

“The FTZs will tap into respective geographical advantages to deepen trade and economic cooperation with neighbouring countries and regions,” Chinese Vice-Minister of Commerce Wang Shouwen said at a press conference on Monday.

“The arrangement will not only help to optimise the strategic distribution of pilot FTZs, but also serve major national strategies such as the Belt and Road Initiative,” he said.

The announcement followed last Friday’s dramatic escalation of the US-China trade war, with both countries increasing tariffs and reinforcing concerns of a decoupling of the world’s two largest economies and the rising risks of global recession.

US trade tariffs had already forced many factories to relocate from the Chinese mainland to other countries in Southeast Asia, and boosted trade relations between Beijing and Moscow on energy and agriculture.

The Heilongjiang FTZ would boost trade cooperation with Russia by easing the movement of goods and people across the border and encouraging companies to look for opportunities abroad, according to plans released by the State Council, China’s cabinet, on Monday.

The Guangxi FTZ is intended to further Beijing’s goal to build a new international land-sea trade corridor with the 10 Asean countries, as well as to promote cross-border trade, logistics and labour cooperation through the maritime Silk Road to Africa and Europe.

According to the State Council, the Yunnan pilot FTZ will promote the expansion of a major international corridor connecting South Asia with Southeast Asia while the Shandong FTZ will push forward economic cooperation among China, Japan and South Korea.

The addition of Shandong, Jiangsu and Hebei means China will have FTZs in all its coastal provinces.

Jiangsu and Shandong had the second and third largest provincial economies in China in the first half of the year, according to data released by provincial statistical authorities. In contrast, the gross domestic products of Guangxi, Yunnan and Heilongjiang were among the lowest of China’s 31 provincial-level regions.

Beijing hopes that establishing FTZs with distinctive missions will help the development of these remote corners of the world’s second largest economy.

“[The move is intended] to strengthen internal drivers for high-quality development through deeper reform and to show our resolve to support an open world economy via higher-level opening-up,” Wang said during Monday’s briefing.

“The overall plans include distinctive and differentiated pilot reform tasks in keeping with the strategic positioning and local features of the pilot FTZs.”

Chinese President Xi Jinping announced the decision to launch the six new free trade zones – without disclosing their locations – in a keynote speech delivered at the G20 in Osaka on June 28, making them a critical part of Beijing’s new economic initiatives to further open up its market and provide incentives for more foreign investment.

The strategy has also been initiated by the ruling Communist Party’s Central Committee, which is head by Xi, to explore new ways to deepen reform and further integrate the country into the global economy.

China launched its first pilot FTZs in Shanghai in 2013. As of today, the country has 18 free trade zones.

Earlier this month, the Chinese government doubled the size of the Shanghai free-trade zone, and announced new tax incentives and import duty exemptions for companies working in the area.

In the first half of the year, foreign direct investment (FDI) in the 12 established free trade zones across China reached nearly 70 billion yuan (US$9.8 billion), accounting for roughly 14 per cent of the overall FDI in the country and an increase of 20 per cent from the same period last year, Wang said.

The pace of expansion was much faster than the country’s overall FDI, which rose 7.3 per cent in yuan terms in the first seven months of this year, according to the data released by the Commerce Ministry earlier this month.

“Foreign investors, including those from Europe and the US, are all strongly interested in investing in [China’s] free trade zones,” Wang said. “We believe the six newly approved free trade zones will also become hot destinations for foreign investment.”

Wang refused to answer questions about Friday’s escalation of the US-China trade conflict either during or after the press conference on Monday.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Targets South African Professionals in New Recruitment Drive Amid Regional Uncertainty
Formula One Faces Major Financial Hit as Bahrain and Saudi Arabian Grands Prix Cancelled Amid Middle East Conflict
U.S. and Saudi Firms Launch Local Production of Attritable Drone Systems in Saudi Arabia
Saudi Arabia and UAE Warn Rising Gulf Tensions Could Endanger Regional Security
Saudi Arabia Rejects Claims It Encouraged Prolonged War With Iran
Saudi Arabia to Host World’s Largest Single-Cell Protein Plant as Food Security Push Accelerates
Saudi Crown Prince Urges Trump to Continue Military Pressure on Iran
Iran Intensifies Drone Campaign Against Saudi Arabia as Gulf Conflict Escalates
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
Iranian Missile and Drone Strike Targets Saudi Arabia’s Prince Sultan Air Base Hosting US Aircraft
Saudi Air Defenses Intercept Drone Over Eastern Province as Iranian Strike Campaign Intensifies
Middle East War Reshapes Gulf Economies as Saudi Arabia and Oman Gain Strategic Leverage While UAE Faces Economic Shock
Iranian Ambassador in Riyadh Blames ‘Enemies’ for Attacks Across the Gulf
Israeli Envoy Ron Dermer Reportedly Visits Saudi Arabia for Discussions on Potential Lebanon Talks
Formula One Cancels Bahrain and Saudi Arabian Grands Prix Scheduled for April
Iran’s Ambassador in Riyadh Rejects Claims Tehran Targeted Saudi Oil Facilities
Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ in Major Push for Data-Driven Economy
Saudi Arabia’s 2018 Budget Signals Strong Push for Non-Oil Economic Growth
Pakistan Envoy in Riyadh Says Regional Diplomacy Intensifying to Prevent Wider Middle East War
Saudi Arabia Intercepts Dozens of Drones as Regional Strikes Kill Two in Oman
Saudi Arabia Redirects Oil Exports to Red Sea Ports as Strait of Hormuz Tensions Escalate
Saudi Arabia Intercepts Missile and Drone Barrage as Regional Conflict Intensifies
Iran Expands Drone and Missile Campaign Across Gulf as Conflict With US and Israel Intensifies
Muslims Worldwide Await Saudi Moon Sighting to Confirm Eid al-Fitr 2026 Date
F1 Calendar Faces Major Disruption as Middle East Conflict Threatens Bahrain and Saudi Races
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
×