Qingdao FTZ focuses on institutional innovation

In recent years, Qingdao city has prioritized institutional innovation, capitalizing on the China (Shandong) Pilot Free Trade Zone, also Qingdao FTZ, to develop a high-level platform for international exchanges and cooperation.

The Qingdao FTZ has implemented a variety of pioneering institutional innovations, which have improved the zone and established a model area for institutional opening.

The Qingdao Area of the China (Shandong) Pilot Free Trade Zone. [Photo by Miao Hongtian/for chinadaily.com.cn]

Zhou Yuxiang, director of the Shipping and Logistics Department, noted that to address offshore trade challenges, the zone has established a digital system providing one-stop services for authenticity verification, cross-border settlement, and financing.

In 2023, the system verified 319 offshore trade transactions totaling approximately $7.7 billion. In the first half of 2024, it verified 135 transactions worth about $3.3 billion.

Wang Li, deputy director of the Qingdao FTZ Administrative Committee, stated that the zone has aligned with international trade rules like RCEP (Regional Comprehensive Economic Partnership) and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), expanding institutional opening in areas such as rules, regulations, management, and standards.

Additionally, the zone has developed over 300 innovative measures unique to Qingdao. Since its approval, the zone has attracted 171 investment projects from 72 Fortune 500 companies, including Orix, Itochu, and Trafigura. During the time, the zone has achieved an annual growth rate of 21 percent in foreign trade imports and exports, and a 22 percent annual growth rate in actual foreign investment utilization, leading the way in new development patterns.