Applications halted to cool down FTZ fever  

中央高層批各地自貿區一哄而起 申報流程暫停

(ECNS) – China's central government has called off the application process for establishing free trade zones (FTZs) amid a frenzy of applicants.

Since FTZs were first mentioned at the Third Plenary Session of the 18th CPC Central Committee last November, local governments have rushed to apply.

More than 20 cities have plans to submit such applications, according to government work reports.

Local governments are eager to receive favorable state policies and funds to draw investment and businesses, just like the establishment of economic development zones or special regions that were popular in the 90s.

However, analysts point out that the central government intended FTZs to be trials for innovation, new development models and reforms, not merely policy preferences.

In addition, there's a threshold for setting up FTZs, and not every city is eligible. Cities need to have a developed international trade and service trade, and have plenty of investment opportunities. Also, they need to be able to boost economies in adjacent areas.

But a stop of applications doesn't mean a stop to reform and innovation, experts say. Local governments should carry on revamping their economies, even without an FTZ tag on them.