China Continuing Creation of Free Trade Zone 'Regardless' of Trade War With US, Chinese Official Says
China's newly announced Shanghai Free Trade Zone will continue “regardless” of its trade relationship with the U.S., China’s Vice Commerce Minister and top trade negotiator Wang Shouwen said during an Aug. 6 press conference, according to an unofficial translation of a transcript from it.
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Asked if the zone announcement was intended to send a message to the U.S. that China will continue to expand market access for foreign companies as the U.S. imposes more tariffs, Wang said the two issues were not connected. “Regardless of our trade relationship with other countries, opening up ... is an important part of our support for the multilateral trading system,” he said.
China recently unveiled plans for its new Lingang area of the Shanghai Free-Trade Zone, where goods are expected to benefit from reduced duties and tax exemptions (see 1908070026).
The new area also expected to help incentivize Chinese companies to develop key technologies for trade, including technologies at the heart of the U.S.-China trade war, including “integrated circuits, biomedicine, artificial intelligence, aerospace and other key links and technologies,” China said in an Aug. 6 press release. China said it will offer a corporate income tax rate of 15 percent “within 5 years from the date of establishment” of the zone for all companies involved in developing those technologies.