Investment booms after a year of growth in Shenyang area of FTZ

Since its unveiling last April, the Shenyang area of Liaoning Free Trade Zone has made considerable progress in attracting enterprises to establish themselves there, according to the Shenyang city government.

Recently released statistics show that more than 15,000 enterprises have so far registered in the Shenyang area, accounting for 60 percent of all companies operating across the Liaoning FTZ. The registered capital of newly established enterprises in the area has reached 150 billion yuan ($22.7 billion).

Among these enterprises, 137 are foreign-funded and 291 companies each have more than 100 million yuan in registered capital. A total of 12,000 have so far set up their accounts at local tax bureaus.

From January to March this year, enterprises in the Shenyang area of the FTZ paid taxes totaling 145 million yuan, an increase of 73 percent year-on-year.

Chen Jiabiao, deputy director of the Shenyang area's administrative committee, said that for the past year, the committee released a number of supportive policies inspired by experiences of other national FTZs, such as Shanghai Pilot Free Trade Zone.

Since last December, the area has launched 22 major research projects and invited national universities, research institutions and other groups to conduct research and put forward innovative suggestions for the area's development.

The administrative committee has also simplified approval procedures and certifications for enterprises, providing many services online.

To build the Shenyang area of the FTZ into an industrial cluster, the committee has made efforts to attract foreign investment through hosting large events.

The area hosted the China-Russia cross-border industry integration conference last December, which attracted Chinese enterprises and 20 Russian companies to explore new opportunities for cooperation.

According to local media, a further 150 Russian enterprises, although not present at the conference, have pledged their intentions to invest in the Shenyang area of the FTZ.

In September 2017, Shenyang hosted the 16th China International Equipment Manufacturing Exposition, which attracted more than 800 companies from 13 countries and regions, including the United States, Germany, France and Japan.

As of April this year, the Shenyang area of the Liaoning FTZ has established strategic cooperative relationships with 17 international chambers of commerce.

In order to better serve these relationships, an international chamber of commerce was set up in the zone on March 20, followed shortly by the launch of a financial zone to serve all companies established in the area.

To date, the zone has attracted 253 financial enterprises, with total registered capital of 24.94 billion yuan. Of these, 138 are financial leasing companies, with combined registered capital of 18.33 billion yuan.

In April, the Shenyang government hosted an investment and financing seminar and matchmaking events for the financial zone, which attracted 50 banking institutions, more than 90 fund institutions and over 100 advanced manufacturing enterprises. Agreements on projects collectively valued at 230 million yuan were signed at the events.

Chen said that the local authorities will continue to offer better services and streamline administrative approval procedures for businesses established in the area. And more favorable policies will be offered to investors in the future.

The Shenyang city government will continue to promote international trade cooperation through launching promotion events and networking activities, he added.

A trade investment network in countries and regions involved the Belt and Road Initiative will also be built in the Shenyang area of the FTZ for attracting more large industrial projects, Chen said.