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Press Release for Media Briefing of the Shanghai Municipal Government on May 16, 2020

May 17, 2020

The General Administration of Customs of China and Shanghai Municipal Government held a press conference today (May 16), during which Li Guo, vice minister of the General Administration of Customs of China, gave a briefing on the supporting policies for the Yangshan Special Comprehensive Bonded Zone, while Chen Yin, executive deputy mayor of Shanghai and director of the Lingang New Area Management Committee, introduced the development progress of the Yangshan Special Comprehensive Bonded Zone. Chen Zhenchong, head of the Free Trade Zone and Special Area Development Department at the General Administration of Customs of China; Zhu Zhisong, deputy secretary-general of the Shanghai Municipal Government and executive deputy director of the Lingang New Area Management Committee; Gao Rongkun, director of the Shanghai Customs; Zhu Min, deputy director of the Shanghai Reform and Development Commission; and Shen Weihua, deputy director of the Shanghai Commission of Commerce, attended the press conference and answered questions from reporters.

I.

The Overall Plan for the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone clearly proposes “the establishment of the Yangshan Special Comprehensive Bonded Zone.” On the basis of comprehensively summarizing the significant progress made in the reform of the free trade zone, the General Administration of Customs of China has conducted in-depth investigations and demonstrations with reference to the most competitive free trade zones recognized internationally, and carefully listened to the opinions and suggestions from the Shanghai Municipal Government, relevant departments and enterprises, and then worked together with relevant departments to study and submit the application to the State Council for the establishment of the Yangshan Special Comprehensive Bonded Zone.

On January 17, 2020, the State Council approved the establishment of the Yangshan Special Comprehensive Bonded Zone. The General Administration of Customs of China carefully guided Shanghai in planning and construction of the zone, and actively coordinated and promoted the acceptance and other related procedures. On May 12, the General Administration of Customs of China, together with the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Commerce, the State Taxation Administration, the State Administration for Market Supervision, and the State Administration of Foreign Exchange, accepted the Yangshan Special Comprehensive Bonded Zone. This morning, a ceremony for issuing the acceptance certificate and for the official launch of the Yangshan Special Comprehensive Bonded Zone was held.

The Yangshan Special Comprehensive Bonded Zone is the only special comprehensive bonded zone in China, which undertakes the important mission of promoting all-round and high-level opening-up at a deeper level, in wider fields, and with greater efforts. The General Administration of Customs of China is addressing the requirements of “selecting key areas that are in line with national strategic needs, feature strong demand in international markets, and greatly need opening-up but do not yet have the conditions for implementation,” to put in place “globally competitive opening-up policies and systems and to step up risk stress tests for an open economy,” vigorously carrying out reforms and innovations, and studying and formulating the “Regulations on the Supervision of the Yangshan Special Comprehensive Bonded Zone of the People’s Republic of China.” According to the regulations, the Yangshan Special Comprehensive Bonded Zone is regarded as a key platform to be benchmarked against internationally recognized, most competitive free trade zones. On the prerequisite of comprehensively implementing the policies in the comprehensive bonded zone, and sticking to the bottom line of maintaining safe and efficient control, the zone will eliminate unnecessary trade supervision, permit and procedural requirements, and implementing higher levels of policies and systems for trade liberalization and facilitation. The zone will simplify the first-line declaration system to the greatest extent, highlight the freedom of operation in the zone, tighten second-line supervision, reform customs statistical methods, and foster the development of international transfer and co-loading in a more convenient way.

In the next step, the customs will actively perform supervision and provide services, fully support the high-level opening-up and high-quality development of the Yangshan Special Comprehensive Bonded Zone, and contribute the customs force to creating a special economic function zone with more influence and competitiveness in the international markets.

II.

The Yangshan Special Comprehensive Bonded Zone is located in the southeast corner of Shanghai. Overall, the location is superior. It is at the center of the mainland coastline, where the Yangtze River flows into sea. It is close to the world’s largest container port and the third-largest airport for freight shipments, enabling it to have access to highly convenient air, sea, waterway, railway, highway and other transportation modes, so that it has the best comprehensive transportation conditions among all similar zones in the world. Secondly, it features diverse geographic areas. The total planned area of the Yangshan Special Comprehensive Bonded Zone is 25.31 square kilometers, which is composed of three parts: Luchao Port Area, Xiaoyangshan Island Area, and Pudong International Airport South Area. Among them, Luchao Port Area is 7.99 square kilometers, Xiaoyangshan Area 9.46 square kilometers and Pudong Airport South Area 7.86 square kilometers. Thirdly, the zone has well-established industrial functions. It has a high starting point of development and basic industrial conditions. Especially since the establishment of the China (Shanghai) Pilot Free Trade Zone, it has developed industrial functions such as distribution and commodity trading for the international markets, import trade and cross-border e-commerce for the domestic market, as well as aviation and shipping.

The construction of the Yangshan Special Comprehensive Bonded Zone follows the principles of “overall planning, step-by-step implementation, batch-by-batch acceptance, and orderly advancement.” The planned area in the first phase is 14.27 square kilometers, as it integrates with the port and covers all existing industrial activity areas within the planned scope of the Yangshan Special Comprehensive Bonded Zone. The launch of the first-phase area will facilitate the implementation of supervision measures for the Yangshan Special Comprehensive Bonded Zone as early as possible, provide a more internationally competitive regulatory environment and preferential policies for enterprises in the zone, and better respond to the adverse impact by the global epidemic. It will be of great significance to turning the crisis into opportunities and improve the competitiveness in the international market. At the same time, it is also accelerating the construction of other parts of the zone, all of which will be completed within this year.

The Yangshan Special Comprehensive Bonded Zone is an important functional carrier for the Lingang New Area to build a special economic functional zone with better international influence and competitiveness, and is also a carrier of opening-up policies and institutional innovation with high requirements for openness where other areas do not yet have the conditions for such policy implementation. Next, the city will accelerate the cultivation of functions, industrial agglomeration, facility upgrading and institutional innovation, in a bid to build a customs special supervision area of the highest international competitiveness.

1. Accelerate the function of industrial agglomeration and foster economic growth momentum. First, efforts should be made to promote the integrated development of trade in services, trade in goods and high-end manufacturing. Focusing on the Luchao Port Area, the city will promote the development of high-end industries such as integrated circuits, intelligent manufacturing, biomedicine, cross-border collaborative research and development, and green remanufacturing; the city will encourage the congregation of multifunctional integrated cross-border service trade including the headquarters economy, digital trade, and offshore business; the city will vigorously support the upgrading of cross-border e-commerce, high-end shipping services, commodity trading and bonded delivery of commodity futures. Secondly, efforts should be made to enhance the ability of international shipping value-added services. Focusing on the Xiaoyangshan Island Area, the city will enhance high value-added shipping services including Asia-Pacific supply chain management center, international transit and goods consolidation services, international transportation services, ship registration and management services, global inspection and maintenance. Thirdly, efforts should be made to build the industry cluster of large aircraft. Focusing on Pudong Airport South Area, the city will develop aviation manufacturing such as assembly integration of domestic passenger aircraft, development of wide-body passenger aircraft, composite parts and components, and aircraft delivery and modification, as well as aviation services such as aircraft leasing, air cargo, aviation cold chain logistics, aviation professional services and aviation derivative industries.

In the near future, the city will roll out the industrial development plan and corresponding supporting policies for the Yangshan Special Comprehensive Bonded Zone to further accelerate agglomeration of industries and functions.

2. Build first-class infrastructure and enhance the region’s function of as a hub. First, the city shall give full play to the advantage of “integration of the zone and the port” and build a high-standard, intelligent port and shipping infrastructure system. Among them, the throughput capacity of Yangshan Port’s Phase IV automated dock will be increased from more than 3 million standard containers to 6.3 million standard containers; Yangshan Port Intelligent Heavy Truck Project will conduct small-batch trial operation this year and will achieve commercial operation by 2024. Secondly, the city will build an efficient and smooth comprehensive transportation system. It will construct a container transfer center linking Xiaoyangshan Island, Donghai Bridge, key railway stations and inland terminal ports to improve multimodal transport functions. The construction of a multi-functional, super air cargo terminal at Pudong International Airport is expected to expand the capacity of flights in and out of the airport. Thirdly, the city shall deploy new types of infrastructure based on real needs to support the development of new industries such as digital trade, artificial intelligence and industrial internet in the region.

3. Strengthen the integration of reform systems and create the most competitive institutional environment. The Yangshan Special Comprehensive Bonded Zone has achieved significant institutional innovation in the supervision modes within the special Customs supervision areas. Based on this, the city shall speed up the systematic integration of various rules and policies. First, the city shall actively study and promote the integration and re-innovation of special policies of comprehensive bonded zones, such as processing and manufacturing, R&D and design, logistics distribution, inspection and maintenance, and sales services, under the institutional environment of special comprehensive bonded zones. Secondly, the city shall comprehensively apply the policies and institutions clearly outlined in the overall plan of the Lingang New Area, the 50 special support policies issued by the CPC Shanghai Committee and the Shanghai Municipal Government to promote high-quality development, and various industrial policies issued by the Lingang New Area Management Committee to achieve powerful synergistic effects across policies. Third, the city shall give full play to the special conditions given to the bonded area and the regulatory advantages of the integrated information management platform, explore more flexible and efficient regulatory models and management systems, and conduct more vigorous trials featuring institutional opening-up.