Lingang leads way in reform and opening-up

Five years are long enough to transform Lingang into a land full of new business opportunities.

Since its establishment as a test ground of China's further reform and opening-up in 2019, the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone has introduced more than 330 policies and initially built an open institutional system.

This is centered on "five freedoms and one convenience," namely investment freedom, trade freedom, capital freedom, transportation freedom, personnel freedom and fast information connectivity. Together with a total of over 107,000 startups, the area has attracted more than 97,000 talented people.

Over the past five years, the average annual growth rate of gross domestic product in Lingang reached 19.8 percent, while industrial output and fixed-asset investment jumped 34.6 percent and 33.4 percent each year, respectively, indicating strong growth momentum in the area.

Agreements of more than 570 key projects in cutting-edge technology industries have been signed, involving an investment of more than 620 billion yuan (US$87 billion).

Investment freedom

Lingang optimizes foreign investment access management and services, and increases openness and innovation in manufacturing, finance, telecommunications, among others.

The first wholly foreign-owned vehicle manufacturing project in China – Tesla was established in Lingang.

The average annual growth rate of actual foreign investment in Lingang has reached 45.3 percent since 2021.

The special area carries out pilot programs to strengthen the implementation of competition policies and promote the in-depth implementation and innovation of the fair competition review system.

It expands and gathers intellectual property administrative service resources, successively establishing national and municipal intellectual property service platforms and comprehensively accepting patent and trademark businesses.

Trade freedom

Lingang has innovated the customs supervision mode, built a higher degree of openness at Yangshan Special Comprehensive Bonded Zone, and implemented and optimized the special customs supervision system marked by "front-line clearance, second-line unilateral declaration, and bookkeeping not necessary in the zone."

Since 2021, the total import and export value of Yangshan Special Comprehensive Bonded Zone has grown at an average annual rate of 37.5 percent, and the scale of offshore trade increased from US$1.1 billion in 2020 to US$13.22 billion in 2023.

Capital freedom

Lingang has enhanced the facilitation level of cross-border settlement, investment and financing. The area has also implemented national initiatives such as directly handling cross-border trade yuan settlement based on enterprise payment instructions, facilitating trade foreign exchange receipts and payments for high-quality enterprises and one-time registration of foreign debt.

It took the lead in carrying out pilot reforms of foreign exchange management in cross-border trade and investment, focusing on promoting innovation.

Lingang has introduced nine capital reform measures, including supporting independent borrowing of foreign debt within a certain quota, conducting pilot projects for Qualified Foreign Limited Partners (QFLP) and Qualified Domestic Limited Partners (QDLP), and conducting pilot projects for integrated domestic and foreign currency capital pools for multinational corporations.

It also carried out four current account facilitation measures, including facilitating the receipt and payment of current account funds for high-quality enterprises.

Transportation freedom

Lingang constructed the "Yangshan Port of China" international registry port, with a total of 50 registered international vessels and a total tonnage exceeding 2.4 million tons, ranking first in the country in terms of the number of registered international vessels.

It also constructed Yangshan International Transit Consolidation Public Service Center, unveiled the establishment of Maersk International Transit Consolidation Center and fulfilled the integration of high and low sulfur fuel oil blending, export supervision warehouses, and bonded warehouses through bonded logistics.

Freedom of employment

Lingang fully undertakes the right of approval for the introduction and settlement of domestic talent, the settlement of returned overseas students, and the verification of residence permit points, and ensuring the rapid implementation and fulfillment of relevant talent policies.

Lingang has implemented more convenient entry and exit policies, taken the lead in establishing an electronic port visa mechanism, and implemented China's first electronic port visa pilot.

It took the lead in implementing a maximum five-year work residence permit for foreign talent, establishing a "green channel" for directly recommending top-notch talented people from overseas to apply for permanent residency.

Lingang also implemented the policy that foreign students can directly apply for long-term (up to 10 years) overseas talent residence permits, loosened restrictions on the employment of top-notch talent from overseas, and opened up three types of professional qualification exams for overseas talent, namely accounting, telecommunication, and motor vehicle inspection and maintenance.

More convenient data flow

Last but not least, Lingang has built a cross-border data flow management system, achieving more convenient, secure and orderly cross-border flow of data.

To provide more convenient cross-border data flow services, the Cyberspace Administration of China has launched the Lingang Special Area Data Cross-border Service Center, dedicated to providing data processors with comprehensive and full process data crossborder services, including application material acceptance and business consultation.