Transformation Model. Bonded Zone To Free Trade

China initiated its establishment of Bonded Areas in the early 1990's. To date, altogether 13 Bonded Areas have emerged across the country. After years of development, the Bonded Areas now play a significant role in bridging together the domestic and international markets, promoting international trade, ushering in foreign investment and technical know-how as well as triggering the development of port-related industries. However, with the acceleration of the economic globalization and especially after China's accession to the World Trade Organization, the future development of China's Bonded Areas is presented with multiple new challenges. How to brace up to these challenges? Serving as the frontier sentries from where China steps into the international competition arena and a meeting ground for domestic and international markets, how can the Bonded Areas get tracked into the world economy in a quick and smooth way? These are exactly the questions that China has to find quick answers to on its way of further opening-up. Therefore, based on a comparative analysis made between overseas Free Trade Zones and the Bonded Areas in China, this paper argues through a logical reasoning for the feasibility and necessity for the transformation of China's Bonded Areas to Free Trade Zones. Analysis on relevant problems possibly arising during the transformation process has also been conducted in the paper from a macro-perspective point of view. The objective of this research paper is to make theoretical probes regarding the transformation of Bonded Areas to Free Trade Zones, which consequently will provide theoretical guidance in the practical work, thus helping us find a convenient and cost-effective route that we shall follow in our attempts to transform the Bonded Areas to Free Trade Zones, which should be both suitable to China's actual situations and compatible to the international standard practices.The highlight and innovation of the paper are described as follows:1. Currently, the academic research work made respecting Bonded Areas is quite limited while the research targeting at Free Trade Zones are even less conducted. Therefore, the research in this paper can be considered as a new academic probe in this field.2. After a thorough inspection of the Free Trade Zones across the world, this paper concludes that the transformation of Bonded Areas to the market-economy-oriented Free Trade Zones becomes necessary when and only when the management and operation mechanisms are in the real sense standardized while pushing forward the change. This conclusion provides a new perspective in conducting researches on how to build special economic zones in our country that are compatible to the international economy.3. The research work ever conducted in this field is confined to the policy category and never approaches the problem from other aspects of mechanism, structuring mode, etc. This paper has made clear-cut descriptions upon the mechanism analysis and practical structuring mode for the transformation of Bonded Areas to Free Trade Zones and sets up a specific goal for Bonded Logistics Areas to betransformed into Free Trade Zones, which marks a new step forward for the research on the topic.4. As a actual application of the research findings of this paper, specific case analysis of Dalian Bonded Logistics Park to be transformed into Free Trade Zone is conducted toward the end of this paper, which puts forward strategy of transformation. This paper presents creative approach of practical application of research work.The paper conducts its argument through a logical reasoning. The deductive steps that threads the whole paper are as follows: First, through the comparative analysis on Bonded Areas and Free Trade Zones, the interactive correlations between Bonded Areas and the transformation of the former to Free Trade Zones are demonstrated; Secondly, through the analysis on the impact on trade liberalization from currently-existing international trade barriers, the paper concludes the inevitability of the founding of Free Tr...