Foreign trade skyrockets with foundation of FTZ

By Yuan Shenggao | China Daily | Updated: 2019-11-15 07:38

Boasting a crucial part of the China (Henan) Pilot Free Trade Zone, the city of Kaifeng is becoming an attractive destination for businesses from home and abroad.

Located in the western part of the city and neighboring Henan's provincial capital of Zhengzhou, the Kaifeng section of the Henan FTZ was founded in April 2017.

With a planned area of 20 square kilometers, the Kaifeng FTZ area focuses on industries such as services outsourcing, automobile, medicine, tourism, finance, logistics, creativity, media and design.

The authorities of the Kaifeng FTZ area have drafted a number of preferential measures to benefit businesses, with some of them recognized by the State Council. Twenty-eight measures, especially those for private-sector business promotion, have been learned and copied by other regions in Henan, according to local officials.

During the past two years, the area has seen a boom in investment.

Foreign trade skyrockets with foundation of FTZ

Local statistics show a total of 5,010 enterprises had settled in the area by the end of October. These include 146 enterprises each with investment surpassing 100 million yuan ($14.3 million) and 13 enterprises each with investment surpassing 1 billion yuan. There are also 25 foreign-funded enterprises, with a combined investment of $134 million.

During the past two years, the Kaifeng FTZ area has quickly grown into an important driver for the city's foreign trade.

In the first half of this year, the area's import and export value reached 888 million yuan, growing 374.87 percent from the same period in 2018 and accounting for 24.76 percent of Kaifeng's total foreign trade volume.

The cultural industry is a highlight of the Kaifeng FTZ area.

On Aug 6, the Shenzhen Culture Assets and Equity Exchange opened its Henan operational center in the Kaifeng FTZ area.

In addition to the FTZ area, Kaifeng's advantages in location and industrial foundation have also played a crucial role in attracting investment.

Located in the eastern part of Henan province, Kaifeng is conveniently connected to the rest of the country and the world with China's trunk railways including the Beijing-Guangzhou, Beijing-Kowloon and Lianyungang-Urumqi and a number of national highways and expressways. It takes only 30 minutes to drive to the Xinzheng International Airport.

Kaifeng has been an industrial hub in Henan province for decades. Today, its competitive industries include automobile and automotive parts, equipment manufacturing, chemicals, new materials, food, textile and garments.

During the provincial People's Congress session in January, the city government proposed a strategy to further integrate with neighboring Zhengzhou, one of the economic powerhouses in the central part of China.

Local officials said the further integration will give full play to the complementary advantages of the two cities and strengthen their share of resources. They said the process will also create new business opportunities for Kaifeng.