Top four things you should know about China (Zhejiang) Pilot Trade Zone

Demonstration area in opening-up of maritime gateways in East China

One of China's seven newly-approved free trade zones, the China (Zhejiang) Pilot Free Trade Zone (FTZ), located in the island city of Zhoushan, East China’s Zhejiang province, was officially launched on April 1, 2017.

The 119.95-square-kilometer zone, made up of both inland and anchorage areas in Zhoushan, is a key part of the country's Belt and Road Initiative and the Yangtze River Economic Belt.

The Zhoushan Archipelago, consisting of 1,390 islands and 3,306 reefs, is outside of Hangzhou Bay. It is the largest archipelago of China.

The Zhoushan Archipelago New Area was officially approved by the State Council on June 30, 2011 as the fourth State-level New Area after Pudong New Area of Shanghai, Binhai New Area of Tianjin and Liangjiang New Area of Chongqing. It’s also the first State-level new area focusing on the development of the marine economy.

To keep in step with economic globalization and trade liberalization, and to open more widely to the outside world, Zhejiang FTZ, based on the geographical advantages and rich resources of the Zhoushan archipelago, is being built into a demonstration area for opening up of maritime gateways.

Forerunner in trade liberalization of bulk commodities and global allocation of resources

To be a forerunner in facilitating trade liberalization of international bulk commodities is part of the orientation of Zhejiang FTZ. It aims to promote import and export of bulk commodities like oil products.

Facilitating the oil trade is a main task for the zone. It initiated construction of a general international oil trading center and has announced plans to develop trading platforms of different kinds.

The zone is working to create a new system for the trade of bulk commodities, one in line with international practices and with Chinese characteristics, to make up for China’s shortfalls in the shipping, storage, processing and trade of oil products.

Zhejiang FTZ is building an international petrochemical base, an oil storage base and a demonstration area for cross-border trade of bulk commodities.

Moreover, Zhoushan Port in the archipelago is constructing a hub to connect ocean and river transportation in a bid to fully tap the potential of the Yangtze River watercourse.

On April 10, 2018, the nation's first dual sea-river vessel, the Jianghai Zhida 1, which has a hull shape and design that allows it to sail on rivers or oceans, completed its nonstop maiden voyage from Ningbo Zhoushan Port to Ma'anshan Port in Anhui.

Focus on the development of a complete industrial chain of oil products

Zhoushan is an international base for oil transfer and storage, which is a solid foundation for a complete industrial chain for oil products.

Zhejiang FTZ had been prioritizing development of just such a chain, striving to facilitate investment and trade liberalization and fostering new driving forces for industrial development.

The industrial chain of oil products will be comprised of five links – oil storage, processing, trade, supply, and supportive services. The refueling of bonded oil will play a key role in its layout.

For the future, Zhejiang FTZ has set clear goals. By 2020, the total oil trade volume is expected to exceed 300 billion yuan ($44.41 billion) and the supply of bonded oil 7 million tons per year. In three years the zone will be capable of storing and refining concurrently 40 million tons of oil per year.

Pioneer in administrative reform

Zhejiang province initiated the “at most one visit” administrative reform at the beginning of 2017, to streamline and bring government services online, as well as to make sure that if you have to visit a government department, you only do it once.

Zhejiang FTZ strives to cut down on excessive red tape on individual and business affairs. The service hall has placed staff members from different departments under one roof and introduced self-service machines to improve efficiency.

For example, Zhoushan started to implement paperless customs clearance for inbound and outbound ships on May 1, 2018, making it China's first customs clearance port for ships with no paper materials required in the whole process. The innovative system will be promoted nationwide.