Shenyang FTZ inland yet alluring

Strong local purchasing power and powerful industrial base prove winning combination

As the first free trade zone approved by the State Council in Northeast China, the Shenyang Free Trade Zone became operational in 2012, stimulating the development of the export-oriented economy in the region.

With a total planned area of 7.2 sq km, it is home to export processing, logistics, trade in goods and services, and a bonded port area.

Compared with coastal cities, the Shenyang Free Trade Zone - as an inland port - has higher logistics costs as goods are transported to neighboring seaports by rail and shipped overseas.

And its preferential policies for exports are not as alluring as some.

But as the industrial and economic hub of Liaoning province and even the Northeast Asia, Shenyang has its own advantages.

The city has a strong purchasing power due to its huge population.

As the traditional industrial center of Northeast China, Shenyang has a solid industrial base to meet the demand of various enterprises for supply.

It is especially strong in manufacturing industries, an advantage further enhanced as companies in coastal regions and from overseas shift operations to the city, especially to tech-intensive sectors like aviation.

Currently there are more than 30 enterprises in the free trade zone, including Vacuumschmelze, Liming Aero-Engine, All-Powerful Waterjet and DTW Logistics.

To offer better services for companies, Shenyang Free Trade Zone is building centers for bonded processing, bonded logistics, goods distribution, and product research.

In addition, the free trade zone also provides a number of preferential policies for enterprises of different types.

Due to the short history of the zone, how to develop rapidly should be the priority of all businesses.

We recommend businesses invest in local pillar industries.

At present, the advanced equipment industry led by aviation is the most important industry in Shenyang.

One of the goals for the establishment of the free trade zone is to drive development of Shenyang's advanced industries with international capital and technology. A number of preferential policies now guide investment into the pillar industries in the zone.

We are now planning for an enlargement of the zone.

We have designed a new area near the Taoxian International Airport for the aviation and equipment manufacturing industries.

Meanwhile, the zone is planning a cross-border e-commerce pilot project to facilitate business transactions between Shenyang and the world.

The author is the deputy director of Shenyang Free Trade Zone Administrative Committee.

(China Daily European Weekly 08/29/2014 page18)