China's pilot FTZs achieve remarkable results in institutional innovation in 2021-2025

BEIJING -- China's pilot free trade zones (FTZs) achieved remarkable results in institutional innovation during the 14th Five-Year Plan period (2021-25), data from the commerce ministry shows on Monday.

As an important strategy in advancing China's reform and opening-up, the country's 22 pilot FTZs achieved nearly 200 institutional innovation results during the period.

China actively encouraged the zones in exploring institutional innovation that reflect their local conditions. For instance, Zhejiang has focused its innovation on the field of bulk commodities, while Jiangsu and Shandong have respectively promoted innovation throughout the entire industrial chain around biomedicine and the marine economy.

Over the five years, a key focus has been expanding high-level opening-up by building a high-standard network of pilot FTZs including those in Shanghai and Hainan Free Trade Port. Efforts were made in promoting the zones in aligning with high-standard international economic and trade rules, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Digital Economy Partnership Agreement (DEPA).

A series of pioneering measures covering key areas such as trade, investment, intellectual property rights, and government procurement have been rolled out in the zones. Some pilot FTZs have yielded a wealth of advanced experiences and typical cases, which were replicated in a broader scope of the zones. These practices have contributed to driving institutional opening-up and economic growth.

In 2024, the proportion of foreign trade and foreign investment in the pilot FTZs to the national total reached 19.6 percent and 24.3 percent respectively, the data shows.

During the 15th Five-Year Plan period (2026-30), China will implement the strategy of upgrading pilot FTZs. Commerce Minister Wang Wentao said that the ministry will work with relevant departments and localities to achieve improvements in the level of institutional opening-up, the effectiveness of systematic reform, and the quality of the open economy.