You Quan, Party Secretary of Fujian province, unveils a nameplate for the China (Fujian) Pilot Free Trade Zone (FTZ) at a ceremony in Fuzhou on April 21. The Fujian FTZ, with three areas in Fuzhou, Xiamen and Pingtan, was officially inaugurated on Tuesday. [Photo/Xinhua]

Related reading:China inaugurates Fujian FTZ

Background

China announced at its NPC meeting, on Dec 28, that it will set up three new FTZs in Fujian and Guangdong provinces and the city of Tianjin with relaxed investment rules to speed up reforms amid economic hardships.

The Fujian FTZ covers 118 sq km in Pingtan (43 sq km), Xiamen (43.78 sq km), and Fuzhou (31.26 sq km), concentrating on greater cross-Straits cooperation with Taiwan.

The government approval required for overseas companies in these zones setting up ventures or changing their purpose of business in these zones has been changed so that companies only need to file a report to the authorities. This adjustment will last for three years, after which officials will decide on whether the policy should continue.

This move has met market expectations that restrictions on foreign capital will be gradually scrapped and marks the latest effort by the central government to push its reform drive and stimulate the economy.