China Expands Free Trade Zones to 23 with Launch of Inner Mongolia Pilot Zone

According to reports from the Chinese Government Network on April 9, the Overall Plan for the China (Inner Mongolia) Pilot Free Trade Zone (hereinafter referred to as the Overall Plan), recently issued by the State Council, was officially released on the same day. With this launch, the number of China’s pilot free trade zones (FTZs) has expanded to 23, marking a new step in the country’s high-level opening-up drive.

The Overall Plan points out that establishing the Inner Mongolia Pilot Free Trade Zone is a major decision made by the Party Central Committee and the State Council, serving as an important strategic measure to further deepen comprehensive reform, promote high-level opening-up and drive high-quality development. Covering a total area of 119.74 square kilometers, the FTZ consists of three areas: Hohhot Area (76.28 square kilometers, including 0.88 square kilometers of Hohhot Comprehensive Bonded Zone), Manzhouli Area (25.11 square kilometers, including 1.44 square kilometers of Manzhouli Comprehensive Bonded Zone), and Erenhot Area (18.35 square kilometers).

Endowed with greater reform autonomy, the Inner Mongolia Pilot Free Trade Zone is encouraged to carry out pioneering, integrated and differentiated explorations in a wider range and at a deeper level, according to the Overall Plan. It outlines 19 reform and innovation measures, including innovating the development of border trade among residents, strengthening the functions of international logistics services, improving the efficiency of scientific and technological achievement transformation and application, and expanding multi-field international exchanges.

Taking advantage of its geographical position of "connecting eight provinces and being close to the capital in the interior, and linking Russia and Mongolia to Eurasia", the FTZ aims to build a hub for information exchange, transportation and logistics, factor resource allocation, key area technological innovation and industrial cooperation that connects internal and external markets and radiates surrounding regions, according to the Chinese Government Network.

It will give full play to its role as an important gateway for China’s northward opening-up and strive to become a high-level free trade park with convenient investment and trade, a sound innovation ecosystem, concentrated advantageous industries and active international exchanges. Each area of the FTZ has clear functional positioning: Hohhot Area focuses on strategic emerging industries and characteristic sectors such as green agricultural and livestock product processing, while Manzhouli and Erenhot Areas focus on cross-border trade, international logistics and cross-border tourism.

The establishment of the Inner Mongolia Pilot Free Trade Zone is of great significance for boosting high-quality economic development in Inner Mongolia, enhancing people’s well-being in border ethnic areas and promoting the construction of a "model autonomous region". It will also deepen China’s participation in the Belt and Road Initiative and the construction of the China-Mongolia-Russia Economic Corridor, strengthening economic and trade cooperation with neighboring countries.

In recent years, China has continuously expanded the layout of pilot free trade zones, with each zone playing a demonstration and leading role in institutional innovation and opening-up. The launch of the Inner Mongolia Pilot Free Trade Zone will further improve China’s opening-up pattern, inject new vitality into regional economic development and provide strong support for building a new development pattern featuring domestic and international dual circulation.