Hong Kong, Macau, Guangdong to build free trade zone

Not intended to compete against Shanghai FTZ.

Guangdong has submitted to Beijing a plan to establish a regional free trade zone with Hong Kong and Macau to Beijing.. The final decision will be left to the central government.

The Guangdong-Hong Kong-Macau zone will be regional, compared with the international focus of Shanghai’s free-trade zone.

“We are still studying the details of this plan,” said Guangdong Governor Zhu Xiaodan. “It will involve trade services, ease of investment and innovation in management to boost cooperation with Hong Kong banks.”

Zhu said he exchanged views about the Guangdong FTZ with Hong Kong Chief Executive Leung Chun-ying. He said the area will take advantage of Hong Kong’s position as a financial hub to bolster regional economic growth.

“Hong Kong needs to meet the opportunities and challenges brought by China opening up,” Leung said.

China’s State Council approved a similar zone in Shanghai in July. The Shanghai FTZ is being marketed as China’s first FTZ. It is located on 29 square kilometers of land in Shanghai.

Guangdong already hosts three special economic zones: Qianhai, Hengqin Island and Nansha district in Guangzhou.