Daxing Airport Area to be lifted by institutional innovation

Officials say improved policies will foster business growth

A raft of institutional innovations were announced at a recent news conference in Beijing to make the Daxing Airport Area (Beijing section) a more attractive place for business and talent.

The Beijing section of the Daxing Airport Area, part of the China (Hebei) Pilot Free Trade Zone, has made institutional innovation a top priority since its establishment in August 2019, said Liu Meiying, deputy head of the Beijing Commerce Bureau, at the news conference.

The newly issued institutional innovations, 81 items in total, are aimed at fostering innovation and entrepreneurship by offering procedural convenience and attractive talent policies, she said.

Business licenses and operating permits will be decoupled across the Beijing section, according to the new rules. This means startups no longer need to obtain both business licenses and operation permits for specific types of commerce before starting operations. A business license will suffice for carrying out general business activities.

Under the new institutional arrangements, promises count. For example, businesses can obtain an environmental clearance by committing to meet all relevant requirements instead of going through an arduous process to prove that they have met the requirements.

Companies that fail to honor their commitments will be punished accordingly. In this way, businesses can save a lot of time on paperwork and commence operations quickly.

In terms of managing foreign investment, the model of pre-establishment national treatment plus a negative list for foreign access will be implemented across the Beijing section.

The negative list enumerates sectors where China restricts or prohibits foreign investment. Areas not included in the list are presumed to be open to foreign investment. If a foreign party invests in an unlisted sector, it will receive the same treatment as a Chinese investor.

Between 2013 and 2019, items on the negative list for pilot free trade zones across the country were reduced from 190 to 37.

The Beijing section supports high-end and technology-intensive industries including aviation logistics, aviation technologies and biopharmaceuticals.

It encourages the introduction of wholly foreign-owned aircraft maintenance companies.

A "green channel" will be put in place to facilitate the import of materials, reagents and equipment needed for developing new medicines.

To attract more overseas professionals, the Beijing section will push for national treatment for foreigners with Chinese permanent residencies when they start a tech business.

Upon finishing their employment contracts in China, overseas professionals will be able to keep their social insurance accounts in China if they choose to return to their home country. These accounts will be reactivated if they come to work in China again in the future.

If they choose to close their accounts, which needs to be done in writing, the balance will be paid to the account owner in a lump sum.

The Hebei FTZ is comprised of four sections, which are Hebei province's Xiongan, Zhengding and Caofeidian, and the Daxing Airport Area straddling Beijing and Hebei. The Beijing section of the Daxing Airport Area covers 9.97 square kilometers, roughly half of the size of the area.

As of Jan 16, the Beijing section had landed contracts worth a total of 4.6 billion yuan ($659.31 million), Liu said.

More institutional innovations are on their way, to develop the Daxing Airport Area into a hub for international exchanges and leading aviation technologies.

Liu also hopes the airport area will become a role model in the coordinated development of Beijing, Tianjin and Hebei.