The China Briefing BookstoreZhangjiagang is a city of some 900,000 people on the Yangtze, around 90 minutes by road northwest of Shanghai. The city’s GDP in 2005 was RMB70.5 billion (about US$10,000 per capita), and it now host to some 1,300 foreign invested enterprises. It is notable for having the only inland free trade zone in China, the only FTZ fully integrated with a port, and the only FTZ focusing on chemical logistics. The city also has one of the new bonded logistic zones. Its port capacity is now 84m tons, and it is a major distributing point for timber, steel and chemicals, as well as containers, and also a key trans-shipment port for cargo going west, up the Yangtze in smaller vessels and barges.
The local government is keen to build on its existing strengths, notably by attracting more foreign investment into its logistics capabilities. And according to free trade zone officials, the city is in the process of applying to the central authorities for free port status, similar to that already available at Shanghai’s Yangshan port. However, the timescale for potential approval is not yet known. In addition, the FTZ and port are keen to pursue a long term aim of “connection” with Shanghai’s Yangshan port. Officials suggested this might in due course, for example, allow an export consignment to clear customs at Zhangjiagang and then travel by bonded transport to Yangshan for shipping. Although these ambitious plans have still to come to fruition, Zhangjiagang seems to be somewhere to watch.
Dezan Shira & Associates maintain an office in Shanghai, advising foreign investors on legal administration, corporate establishment, due diligence and tax policy in the city. Please contact Olaf Griese or visit the Shanghai office website for more information.
