Nansha New Area

Nansha, located in the most southern part of Guangzhou, began its large-scale development in 2002, and in 2005 became the administrative district of Guangzhou. It was approved by the State Council as a national new zone and free trade zone in 2012 and 2014, acquiring its superposition advantage as a “double zone”. Nansha has become an important precedent for China’s new round of reform and opening up and an important carrier and platform for representing the country in the new round of economic competition and cooperation in the globalization of the new era.

Located in the southern part of Guangzhou right at the geometric center of the Greater Pearl River Delta Economic Region and situated at the supporting position of the "A" shape formed by Guangzhou, Hong Kong and Macao, Nansha is the hub connecting the city groups on the banks of the Pearl River Estuary.

It includes the Nansha Economic and Technological Development Zone (China (Guangdong) Pilot Free Trade Zone Nansha Area of Guangzhou), the Pearl River Administrative Region (Longxue Island) and other specially designated areas. It is the country’s sixth state-level zone, and boasts excellent geographical advantages and an abundance of natural resources. Covering a total area of 60 square kilometers (including the 7.06-square-kilometer Nansha Bonded Port Area), the China (Guangdong) Pilot Free Trade Zone Nansha Area of Guangzhou (Nansha FTZ) is divided into seven functional zones.

The functional areas are committed to promoting the economic and technological development of the Nansha district and Guangzhou and to building a world-class integrated service hub based on all-round Guangdong-Hong Kong cooperation via focusing on the development of shipping logistics, international finance, international trade, science and technology innovation, marine economy and high-end manufacturing industries.

In January and February of 2018, the industrial output value above designated scale totaled 32.32 billion yuan, and the public finance budget revenue amounted to 1.12 billion yuan. The total taxes reached 9.16 billion yuan and total sales reached 25.3 billion yuan. Foreign trade was worth $3.09 billion, with imports of $1.1 billion and exports of $1.99 billion.The zone used $133.47 million of foreign investments.

Industries

Nansha has a solid industrial foundation, which forms an industrial framework of equal value to both the modern service industry and the advanced manufacturing industry. Its advanced manufacturing industries such as automobiles, ships and major equipment, as well as its modern service industries such as shipping logistics, technological innovation, service outsourcing, innovative finance, financial leasing, cross-border e-commerce, and headquarters economy are developing rapidly.

The district has the world’s top 12 ports and shipping hubs and top three shipbuilding bases, and China’s leading automobile and parts manufacturing and export bases and advanced equipment industry clusters. It also has a number of national-level scientific research innovation institutes and incubators such as the Chinese Academy of Sciences and Hong Kong University of Science and Technology (HKUST). Many Fortune 500 companies have been stationed successively in the area.

Functional areas

The FTZ has seven functional areas:

The Jiaomen River Central Cluster·Foreign investment integrated service zone (3 sq km): focusing on the development of the business services industry, cultivating a new format of foreign trade, and gathering SME headquarters.

The Mingzhu Bay Cluster·Financial business development pilot zone (9 sq km): focusing on the development of a headquarters economy, financial services and business services.

The Nansha Bay Cluster·Scientific and technological innovation and cooperation zone of Guangdong, Hong Kong and Macao (5 sq km): focusing on the development of scientific and technological innovation, cultural creativity, and economic service outsourcing for the yachting industry.

The Wanqingsha Bonded Port Cluster·Processing trade transformation and upgrading service zone (10 sq km): focusing on the development of manufacturing, research and development incubation, data services, e-commerce, testing and certification services and other productive services.

The Haigang Cluster·International shipping development and cooperation zone (15 sq km): focusing on the development of shipping and logistics, bonded warehousing, international transit, international trade, commodity trading, automotive logistics and other shipping services.

The Nansha Hub Cluster·Integrated development pilot zone of Guangdong, Hong Kong and Macao (10 sq km): focusing on the development of information technology, financial back-office services, transformation of scientific and technological achievements and professional services.

The Qingsheng Hub Cluster·International education and medical cooperation pilot zone (8 sq km): focusing on the development of trade exhibitions, international investment, educational training, health care services, and scientific and technological research and development.

Advantages

Industrial resources

The district has the world’s top 12 ports and shipping hubs and top three shipbuilding bases, as well as China’s leading automobile and parts manufacturing and export bases and advanced equipment industry clusters. It also has a number of national-level scientific research innovation institutes and incubators such as the Chinese Academy of Sciences and Hong Kong University of Science and Technology (HKUST).

The Nansha deepwater port’s cargo routes cover the world’s major trade areas, such as Europe, the Americas, South East Asia, the Middle East, and Australia. With the completion of the second and third phases of the Nansha Port project, it has formed a new pattern for modernized international ports coupled with related industrial zones. The Nansha government plans to take advantage of the international port to develop an ancillary industrial zone which will include fundamental industries such as ship building, iron and steel processing, and petrol-chemicals, promoting the concerted development of Guangzhou's traditional industries, the high-tech industries located nearby and service industries.

Advantages in investment and trade

Nansha is committed to building a basic institutional framework linked with the rules of international investment and trade, creating the institutional mechanisms required by the Free Trade Zone as well as an internationalized market-oriented legal business environment.

Items within the negative list are areas where foreign capital is banned or limited; therefore, industries or modes that are not so listed may enjoy national treatment in foreign investment. In line with international high-standard investment rules, the district has formed a new type of administration mode consistent with domestic and foreign investment. For matters not within the negative list, the establishment of foreign-capital enterprises, joint ventures and Sino-foreign cooperative ventures as well as contracts are subject to a filing system rather than an approval system.

Convenience in trade

Significant progress has been made in the construction of a major intelligent customs clearance system. The district has implemented a number of reforms such as the “Single-window Service” in international trade, rapid customs inspection and clearance including self-service clearance of international transshipment cargoes, and cross-border e-commerce product quality traceability.

Service and management

The country has taken the lead in implementing a new mode of tax administration and service such as independent tax declarations and set up the first court in the country's pilot free trade zone. It is gradually advancing the mode of “a comprehensive law enforcement team taking charge of all things” to explore mechanisms such as circuit trials in the free trade zone, international arbitration and commercial mediation.

Transportation

The five major international airports of Guangzhou, Shenzhen, Hong Kong, Macao and Zhuhai are distributed not more than 100 kilometers from Nansha. Nansha Port has opened nearly 100 domestic and international liner routes; 63 of the latter have a throughput capacity of 18 million TEUs. Nansha has constructed a large transportation network that connects the district, the urban area of Guangzhou and the surrounding areas.

Cooperation with Hong Kong and Macao

Nansha cooperates closely with Hong Kong and Macao and has completed a number of national-level scientific research platforms and high-end demonstration projects. It is the pilot demonstration zone for CEPA implementation in Guangdong province. The district is further expanding its opening up to Hong Kong and Macao, promoting mutual recognition of service qualifications, and docking with international standards in terms of quality and technology to expand its international market.

Strategic positioning

The FTZ is committed to establishing an internationalized business environment adapted to international rules and prioritizing liberalization of service trade with Hong Kong and Macao. It will become an international shipping logistics center with high integration of international trade functions and strong financial innovation services, and form a demonstration base for scientific and technological cooperation with countries and regions along the 21st-century Maritime Silk Road. Overall it will contribute to building a new and open economic pattern.

Due to its geographical advantages, the zone will focus on the development of shipping logistics, international finance, international trade, science and technological innovation, marine economy and high-end manufacturing industries. It will emerge as a modern industrial base and a world-class integrated service hub, as well as an all-round Guangdong-Hong Kong cooperation demonstration area.