China's Free Trade Zone, The Transition To A Free Trade Zone

Since Waigaoqiao Bonded Zone which is the first of China's Bonded Zones was set up in 1990, there have been 15 Bonded Zones so far in all. Having experienced the stages of construction, initial development and the rapid development, now the economic strength of them has been constantly consolidated. They have played an important role in connecting the markets and resources at home and abroad, attracting foreign investment, introducing advanced technologies, increasing the employment opportunities and radiating and leading the regional economy, However, China's Bonded Zones are distinctly different from the world FTZs in many aspects. The function and orientation as free trade zones have not been completed fulfilled yet.With the integration of the world economy and the deepening of the China's opening-up, and especially with China's entry into WTO, the further development of China's Bonded Zones are encountered with unprecedented severe challenge. Owing to the congenital weakness, the lack of legislation and the ambiguous positioning, the problems arising from the operation of these zones stand out distinctly when further development is bottlenecked by the previous weaknesses. The functions the zones exert are rather limited. Several departments, leading to a low working efficiency, handle the management. Ports and zones depart and the customs inspection is not smoothly conducted. Under these circumstances, the Bonded Zones are compelled to transit towards the FTZs. That's a tendency required both by the outside environment and the inner initiative of bonded zone itself.Therefore, based on a comparative analysis made between overseas Free Trade Zones and the Bonded Zones in China, this paper argues through a logical reasoning for the inevitability for the transformation of China's Bonded Zones to...