Report on the Development of Pilot Free Trade Zones in China

Abstract

As of September 2017, the implementation area of the Pilot Free Trade Zone in China has increased by 1,314.26 km² from the original 474.96 km², and has formed a “1+3+7” pilot reform layout. The negative list has been further slimmed down, the areas for opening-up have been further expanded, the economic reform has achieved remarkable results, and the pilot free trade zone enters a new phase of integration of the institutional system. Meanwhile, the initial reform goals have been preliminarily realized, and the current concern of the reform is where the efforts should be devoted in the next phase. The differentiated reform of 11 pilot free trade zones may lead to confusion in policy understanding in the absence of institutional coordination. The difficulty faced by the pilot free zone in the next phase is still how to resolve the “Mundell-Krugman trilemma”, to promote the reform with opening-up and advance the development by the reform. To replace the orientation of the performance with that of the problem is still a focus of the institutional reform of pilot free trade zones.