China upgrades free trade zones to strengthen their role in global trade and domestic reform. During a State Council meeting on Friday, Premier Li Qiang outlined new steps to expand the role of FTZs. Officials stressed that these zones must align with international trade and economic rules. They also emphasized the urgency of institutional innovation and flexible reform. China upgrades free trade zones amid ongoing trade tensions with the United States.
The meeting urged free trade zones to adopt customized approaches that reflect local development needs. Authorities want FTZs to lead in service trade, digital trade, and cross-border data flows. These goals require targeted experimentation and bold policy trials. When local conditions support it, FTZs must accelerate pilot reforms. China upgrades free trade zones to drive transformation from the ground up.
Since launching the first FTZ in Shanghai in 2013, China has rapidly expanded the program. Today, 22 FTZs account for one-fifth of the country’s total foreign trade and investment. The Ministry of Commerce reported continued progress toward integration with global trade frameworks. These include agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. They also include the Digital Economy Partnership Agreement, which supports modern trade systems.
Officials plan to expand access in sensitive sectors such as education, culture, telecommunications, and healthcare. They will implement negative lists to guide investment access and streamline service trade. Meng Huating from the commerce ministry said reform measures will adapt to each region. For instance, Guangdong, Fujian, and Tianjin will receive more reform tasks to match their conditions. China upgrades free trade zones while pushing localized reform to create national impact.
Eventually, China will scale up successful practices from leading FTZs to the rest of the country. This nationwide expansion aims to spread the benefits of openness to more firms and communities. Authorities believe deeper reforms will improve investor confidence and trade efficiency. With rising pressure from global economic shifts, China is relying more on reform-driven growth. As China upgrades free trade zones, it signals stronger commitment to both global integration and domestic revitalization.
