The offices of the Xiamen Area of the China (Fujian) Pilot Free Trade Zone. [Photo/WeChat ID: gh_6233022b6145]
An innovative practice being conducted in the Xiamen Area of the China (Fujian) Pilot Free Trade Zone – located in the port city of Xiamen, in East China's Fujian province – is making things matter.
It was recently included among the top 10 examples of institutional innovation in pilot free trade zones in China by the Institute of Free Trade Zones at Sun Yat-sen University.
The area's new version of offshore international trade promotes dual circulation, which involves balanced trade in both domestic and foreign markets. It has become a typical and innovative attempt to address the key problems and bottlenecks in China's offshore trade.
The system has gained experience for the country's cross-border supply chain business. It has also promoted the reform of foreign exchange settlement facilitation and tax reform research, complemented the supply chain in general trade and domestic trade and promoted the construction of a new development pattern for dual circulation.
Early in 2018, the Xiamen Area established an offshore trade promotions team, innovating a link between the local government, supervision authorities and the banks.
The first batch of State-owned enterprises with large offshore trade volumes, good credit and rich experience were selected to carry out pilot projects for domestic business entities, to handle their offshore trade. Since then, this has been replicated and promoted throughout the city.
An efficient and flexible multi-level risk prevention system was then launched under the guidance of the State Administration of Foreign Exchange, or SAFE.
The Xiamen Area rolled out policies to reward enterprises for their local economic contributions to offshore trade – and to motivate pilot enterprises to transfer the offshore trade business of overseas SPV companies back to China.
In June 2021, Xiamen was approved as one of five pilot areas for new offshore international trade by SAFE.