Fujian mulls FTZ co-application by Xiamen, Fuzhou and Pingtan

The provincial authorities in Fujian province are considering teaming up the cities of Xiamen, Fuzhou and the Pingtan Comprehensive Pilot Zone in its application for the province's first free trade zone (FTZ).

The idea was first brought up at a recent provincial working conference, according to Zhang Chanmin, vice-mayor of Xiamen on Feb 20.

Insiders revealed that the Fujian Commerce Department will be responsible for organizing the co-application of Haixi (West Coast of Taiwan Straits) Free Trade Zone.

The news came as a surprise to many as Pingtan and Xiamen submitted FTZ applications separately to the State Council last year.

The Haixia FTZ application means the two areas will have to retract their previous applications and make a joint one with Fuzhou.

Fujian has been moved backwards and forwards in its FTZ blueprint. In mid December, it applied to set up the Xiamen FTZ to central authorities. And in January, the plan of Fuzhou-Pingtan FTZ was put forward at an annual session of the Fuzhou People's Congress; while on Feb 12, Fuzhou government officials told media that Pingtan and Fuzhou had reached consensus in their joint application.

Shanghai became China's first FTZ in August 2013. As of Feb 21, the State Council hadn't approved any other FTZs. No progress in reviewing either Pingtan or Xiamen's FTZ applications have been reported.

The joint FTZ application by Fuzhou, Xiamen and Pingtan comes with both pros and cons, according to experts.

Combing Xiamen and Pingtan into one FTZ will have large enough space to accommodate a number of enterprises. During their own FTZ applications, Xiamen and Pingtan both highlighted their links with Taiwan, which is larger than either of the two, economically and geographically. So either Pingtan or Xiamen faces huge challenges in independently introducing Taiwan's enterprises, said Tang Yonghong, director of the Taiwan economic research center of Xiamen University.

With Fuzhou, Xiamen and Pingtan joining hands, there will be a bigger chance of being approved and that will boost the regional economy of Fujian province, said an expert from the Fujian Economic and Trade Commission.

The difficult part of a joint FTZ application lies in how to connect the trio as they are relatively independent in their economies and culture and have imbalanced development, said Tang.

Gong Xiaowei from the Xiamen Economic and Urban Construction Commission echoed Tang's sentiment, saying that it is possible that the three players might not gel well together due to a scattered administrative division.

Tang put up a bold proposal that Fujian province as a whole could try to apply for a FTZ, saying it will help coordinate work and carry out specific projects, and it has advantages in linking with Taiwan and prompting reform mechanisms.

Edited by Chen Zhilin and Brian Salter