Zhejiang Free Trade Zone (FTZ) is a significant strategy to serve the Belt and Road initiative and Yangtze River Economic Zone. On May 25 in 2015, General Secretary Xi Jinping, during his inspection visit in Zhoushan, pointed out that the development and opening up of Zhoushan contained not only regional but also national strategic significance, due to its unique port advantage, regional advantage and resource advantage.

The strategic positioning of Zhejiang FTZ is to, with the core of institutional innovation and basic requirement of being replicable and scalable, develop into a major model zone of opening-up at sea in easternChina, a forerunner of trade liberalization in international bulk commodity and a base of resource allocation with global impact.

The development goal of Zhejiang FTZ is to, with three years’ reform and exploration of distinctive features, basically realize facilitation of investment and trade, cluster of high-end industries, standardization of legal environment, improvement of financial service, efficient and convenient supervision as well as outstanding influence of radiation. With remarkable improvement of global allocation capacity for bulk commodity focusing on oil products, Zhejiang FTZ is expected to basically develop into a pioneering zone of free trade port according to international standard.

Zhejiang FTZ, with an operation area of 119.95 square kilometers, consists of land areas and relevant anchorages at sea. It covers three subareas: 78.98 square kilometers of Zhoushan offshore subarea (including 3.02 square kilometers of Zhoushan Port Comprehensive Bonded Area No. 2), 15.62 square kilometers of Zhoushan Island north subarea (including 2.83 square kilometers of Zhoushan Port Comprehensive Bonded Area No. 1) and 25.35 square kilometers of Zhoushan Island south subarea.

Zhejiang FTZ emphasizes pilot contents in five aspects, namely transforming government functions, promoting investment facilitation and trade liberalization in the whole industrial chain of oil products, exploring new means of trade and investment, finance management and customs clearance supervision.

The first is to faithfully transform government functions.Further streamline administration and delegate power, balance relaxation and enhancement of policy, optimize service reform, establish an administrative mechanism that is clearly defined in power and responsibility, highly efficient in management, and well coordinated in operation. Improve the administrative power list and responsibility list of Zhejiang FTZ. Deepen reform of administrative approval system to establish unified administrative approval institutions that are streamlined and efficient. Promote reform of comprehensive administrative law enforcement system. Establish market access system that is unified and open together with supervision system of high standard. Upgrade capability of foreign investment utilization, apply national treatment plus negative list administration on foreign investment before its entry approval, vigorously build interim- and post-supervision system that matches negative list administration method.

The second is to promote investment facilitation and trade liberalization in the whole industrial chain of oil products.With bonded fuel oil supply service as the breakthrough, expedite and expand international ship management, upgrade international shipping service function and establish a base for international maritime affairs service. Enlarge the scale of oil products storage and transit shipment, facilitate investment in oil products storage and shipment, improve storage system of oil products, enhance international cooperation in oil products reserve and build an international base for storing and shipping of oil products. Expand openness for investment in the field of oil products processing, implement supportive policies for associated industries and build an international green petrochemical base. Improve allocation capacity of oil product resources, vigorously develop domestic and international distribution networks and trading markets for refined oil products, promote spot transaction markets for refined oil products and build a bonded trading center for fuel oil in northeastern Asia. Explore futures trading of oil products and build an international trading center for oil products. 

The third is to explore new means of trade and investment. Optimize regional mineral handling and unloading system layout, build an international transit base for minerals. With large artery airplane completion and delivery as the core, vigorously develop aviation manufacturing, maintenance, research and development as well as the affiliated industries, follow the transfer trend of international aviation industry and foster Zhoushan Aviation  Industrial Park. 

The fourth is to promote institutional innovation in the field of finance management.Explore financial innovation that benefits trade liberalization of bulk commodity. Promote policy innovation such as cross-border use of Renminbi and Reminbi-denominated settlement. Explore finance services , facilitate cross-border trade, investment and financing settlement. Actively develop finance lease and insurance. 

The fifth is to promote institutional innovation in customs clearance supervision.Within the customs special supervision areas, adopt the customs clearance supervision mode with the feature of “open on the first line” and “secure and efficient management on the second line”. Explore convenient security control measures in managing foreign personnel inside Zhejiang FTZ, offer facilitation policy on immigration, stay and residence. Promote integration and optimization of customs special supervision areas and improve functions. Expand openness of ports to the world. 

The China(Zhejiang) Free Trade Zone will provide Zhejiang with best opportunities to explore for future reform and opening-up. On a higher level, the free trade zone will promote investment from home and abroad and better embrace international economy.