Jinan Area, China (Shandong) Pilot Free Trade Zone

Source: 03-01-2022 11:03:00

Location advantages

Jinan Area extends from Jinan Central Business District in the west to Jinan Science and Technology Innovation City of the Chinese Academy of Sciences in the east, taking Jingshi Road as the main axis and covering an area of 37.99 square kilometers. It includes partial areas of Lixia District, Licheng District and Jinan Innovation Zone and covers the core area and east area of Jinan Innovation Zone and the whole area of Zhangjin Comprehensive Bonded Area.

Functional positioning 

Focusing on development of artificial intelligence, industrial finance, medical treatment, health preservation, cultural industry, information technology and some other industries, Jinan Area is carrying out the comprehensive pilot test of a new open economic system and building Chinas important regional economic center, logistics center and scientific and technological innovation center.

Five major industries

Artificial intelligence: Vigorously build the ecosphere of the artificial intelligence industry led by China National Heavy Duty Truck Co., Ltd., Synthesis Electronic Technology Co., Ltd. and Telchina Smart Industry Group Co., Ltd., taking Shandong Institute of Industrial Technology, the National Science Center of the Chinese Academy of Sciences, etc. as the carriers.  

Industrial finance: Adhere to the staggered development of the industrial finance of Lixia Area and the industrial finance of Jinan Innovation Area and making them improve their shortcomings by making use of others strong points and build the ecosphere of the industrial finance led by Qilu Bank and Zhongtai Securities, taking the International Finance City as the carrier.

Medical treatment and health preservation: Vigorously build the ecosphere of the medical treatment and health preservation industry led by Qilu Pharmaceutical, Bloomage Biotechnology and Yinfeng Biological, taking Jinan Pharma Valley, Life Science City and China-Japan (South Korea) Industrial Park as the carriers.

Cultural industry: Vigorously build the ecosphere of the culture industry led by Century Innovation Intelligent Printing Internet Technology Group Co., Ltd. and Handu E-Commerce Group, taking the national animation and comic base and the national digital service export base as the carriers.

Information technology: Vigorously build the ecosphere of the information technology industry led by Inspur, Jinan Institute of Quantum Technology and Dareway Software Co., Ltd., taking Qilu Software Park, the National Supercomputing in Jinan and the Innovation Center of the National Cloud Computing Equipment Industry as the carriers, and take the lead in building Chinas first 5G cities. 

Ten major platforms

Zhangjin Comprehensive Bonded Area: It is the greatest bonus that Jinan Area has obtained from the State Council, which has caused Jinan to have two comprehensive bonded areas. Zhangjin Comprehensive Bonded Area will build three major centers  a research, development and design center, an inspection and testing center and a sales service center, take the lead in construction of the national comprehensive pilot area for cross-border e-commerce and carry out the pilot work for comprehensively deepening the innovative development of trade in services.

Greenbelt (Jinan) Global Commodity Trade Port: Influenced by the spillover effect of China International Import Expo, Greenbelt (Jinan) Global Commodity Trade Port will build normalized import commodity exhibition and transaction service platforms with multi-category import commodities and multiple channels, provide the services for Jinan and the provincial capital economic circle and constantly meet the requirements of the people for quality life.

Jinan International Trade Center: It introduces international trade and service enterprises, builds live stream economy and cross-border e-commerce platforms, and establishes the biosphere of the whole foreign trade industry chain. The comprehensive international trade service companies that have settled in Italy or France and the Tik Tok Platform will form a standard international commercial enterprise cluster of Jinan, leading the cross-border e-businesses.

China-Japan International Medical Technology Park: Jinan has joined hands with some Japanese multinational corporations such as Toray, Canon and Olympus and they will jointly design, build and operate the international diagnosis and treatment center  China-Japan International Medical Technology Park, establish an international dialysis center and promote the transformation of medical organizations from medical treatment organizations to medical research and development organizations.

Institute of Human Capital Industry: The Institute of Human Capital Industry has established Chinas first human capital value empowerment system and firstly proposed the investment method based on human capital values in China. It has made intellectual properties, achievement transformation and talent teams evaluable.  

Shandong Online Medical Insurance and Health Service Platform: The establishment of Shandong Online Medical Insurance and Health Service Platform has been jointly promoted by the Health Care Security Administration of Shandong Province and the Peoples Government of Jinan City. The platform is Chinas first open comprehensive service platform with integrated superior resources supported by the government, mainly owned by the state and operated according to the market conditions as well as Chinas first provincial-level medical insurance and health care internet platform. The platform has created a new internet + medical insurance + medical treatment + medicine service model to provide inclusive professional integrated services.  

National Base for International Cultural Trade: The application for the National Base for International Cultural Trade of Jinan has been submitted taking Shandong Tongcheng Shangpin Culture Media Co., Ltd. as the main part of the planned base. The base will be officially established within the first half of this year and about 200 medium and small-sized cultural enterprises will settle in the base. It has been predicted that the annual export volume will reach USD 10 million. The National Base for International Cultural Trade of Jinan will aim to export high-quality cultural products, tell good Chinese stories and strengthen overseas influence of the Chinese culture.

Integrated Platform for Food, Drug and Medical Device Supervision; Jinan Area, Shandong Administration for Market Regulation and Shandong Food and Drug Administration are jointly building the Integrated Platform for Food, Drug and Medical Device Supervision integrating more nationwide food, drug and medical device approval and supervision functions. They will strive to build the platform into an incubator of the new food, drug and medical device products of Shandong Province and a strong engine for aggregation and development of some new business operation forms such as product import of biological pharmaceutical industry and import of parallel medical devices.

Financial center of the gold industry: Aiming to form a biosphere of the gold industry in Shandong Province serving the whole country and facing the whole world, build a non-standard gold trade collection and distribution center with international influence and a non-standard gold factor market with international influence.

Artwork Bonded Warehouse Service Center: As Shandongs first artwork bonded warehouse service center, it focuses on building an international art space in which art bond and art finance play a leading role. It is an innovation of the cultural artwork system of Jinan Area and the innovation practice for building a new high ground open to the outside world.

Preferential policies

In December 2020, 100 Policies of Jinan on Free Trade Innovation was released. The policies can be classified into the following 7 categories: the administrative approval service facilitation, the tax service facilitation, the trade and investment facilitation, the finance and foreign exchange facilitation, the scientific and technological innovation and high-end talent services, the exit and entry facilitation and the life service facilitation. The following are some excerpts of the policies:

Support the key integrated circuit industry development of Jinan Area. Give play to the functional advantages of the customs and strengthen the support for project applications encouraged by the state, comprehensive applicable preferential tax policies, enterprise certification management, etc. Explore and carry out tax exemption and reduction, equipment financing and leasing transactions. Carry out bonded supervision of imported materials and parts to comprehensively reduce the financial pressure of enterprises.  

Allow the implementation of capital item foreign exchange earnings payment facilitation. The pilot enterprises conforming to the conditions can directly conduct the payment related to the capital item earnings and it is not necessary to submit authentication materials item by item.

Introduce foreign high-end research and development organizations. Make overall arrangements for a special fund for joint urban innovation, encourage multinational corporations to establish global research and development centers, greater regional research and development centers and open innovation platforms, and encourage wholly-owned foreign research and development centers and domestic enterprises and public institutions to jointly establish public research and development service platforms and key laboratories.

Support scientific and technological achievement transformation and innovation. If any foreign postgraduates and doctoral candidates of domestic and foreign universities and scientific research institutions plan to transform scientific achievements in any scientific achievement transformation enterprises or their own startups that have settled in the pilot free trade zone, they may apply for multiple entry visas or residence permits that will be effective for at most five years by showing relevant certificates and documents.  

Well-known enterprises

Inspur Group Co., Ltd., China Heavy-Duty Truck Group Co., Ltd., Qilu Pharmaceutical Co., Ltd., Lingong Group Jinan Heavy Group Co., Ltd. (LGMG), Festo Pneumatic Components Co., Ltd., Shandong iron & Steel Group Company Limited, Jinan Xunjian Bonded Logistics Co., Ltd., Shandong Xinjiu Import and Export Co., Ltd., Shandong Lianda Runyi International Logistics Co., Ltd. and Jinan Branch of New China Life Insurance Co., Ltd.