Bill of Lading Can Be Used as a Letter of Credit in Germany The Conference on Latest Polices Was Held in Chongqing Pilot Free Trade Area

□ Article/Journalist Zeng Rui

Bill of Lading Can Be Used as a Letter of Credit in Germany The Conference on Latest Polices Was Held in Chongqing Pilot Free Trade Area

□ Article/Journalist Zeng Rui

On August 1, 2017, the seminar on latest policies of China (Chongqing) Pilot Free Trade Zone organized by the Chongqing Liaison Unit of the Government of Hong Kong Special Administrative Region,Chongqing Commerce Commission and Hong Kong and Macao Entrepreneur Branch, Chongqing Overseas Association was held in Chongqing.

Liao Hongjun, deputy director of Chongqing Commerce Commission and Zhang Ning, director of operation division of Chongqing Free Trade Zone Office. They also made an authoritative interpretation of “Special Management Measures in 2017 for the Access of Foreign Investment to Pilot Free Trade Zone (Negative List)”, which was carried out on July 10th.

Three functional characteristics of Chongqing Pilot Free Trade Area

Liao Hongjun said in his statement that according to the overall requirements of CPC Central Committee and the State Council, Chongqing Pilot Free Trade Area seeks ideas around the strategic positioning given by the central government aiming to build“four centers and one base” including the inland international trade center based on the goods trade;inland international logistics center with multimodal transport as the core; domestic major functional financial center based on the convenience of fi nancial settlement; the operation center of modern service industry with interconnectivity as the goal;national important modern manufacturing base supported by technology and innovation. Compared with other domestic pilot free trade area, Chongqing Pilot Free Trade Area boasts three characteristics including the exploration of land trade rules, the stress on the development of real economy and prominent manufacturing and the integration with China-Singapore Demonstration Project.

“Chongqing-Sinkiang-Europe” bill of lading can be used as letter of credit in Germany

According to the information provided by Chongqing Commerce Commission, Chongqing-Sinkiang-Europe International Railway was tested 8 times in the fi rst half of 2017 in order to seek the new rules of land trade. Since July 20, “Chongqing-Sinkiang-Europe” has been able to deliver a mail container on each Thursday and Saturday, which will be allocated to 17 European countries. Chongqing Railway Port has begun to operate International Mail Processing Center with a processing capacity of 100,000 pcs/day. The related work of return transportation of“Chongqing-Sinkiang-Europe” has also started.Taking the parallel imports of automobiles as a breakthrough, “Chongqing-Sinkiang-Europe” bill of lading authorized by the German banking industry can be used as the letter of credit, promoting the application of letter of credit in international railway transportation. At the same time, Bank of China,Huaxia Bank and Chongqing Bank also make indepth discussions on the financial operation of“Chongqing-Sinkiang-Europe” bill of lading, which fully embody the functional characteristics of the new rules of land trade seeking by Chongqing Pilot Free Trade Area.

To abolish several restrictions on foreign fi nance and service

On July 10, “Special Management Measures in 2017 for the Access of Foreign Investment to Pilot Free Trade Area (Negative List)” (hereinafter referred to as “Negative List in 2017”) was put into operation of fi cially. Zhang Ning, director of operation division of Chongqing Free Trade Office, made a speci fi c interpretation on some important articles.

The development of foreign financial industry in Chongqing Pilot Free Trade Area has been a focus of attention from all walks of life. According to her introduction, the domestic business threshold is greatly reduced for foreign banks and foreign insurance companies in accordance with the provisions of “Negative List in 2017”: it directly cancels the original regulations that branches of foreign banks shall not engage in issuing, cashing and selling government bonds as agents, whichis allowed by the Law of the People's Republic of China on Commercial Banks; the minimum opening time limit for foreign banks to be allowed to handle RMB business; the requirements of total assets of foreign investors investing in financial asset management company; without the approval of insurance regulatory authority of China, a foreign insurance company may not engage in outward or inward reinsurance with its associated enterprises.In the meanwhile, the investment restrictions on accounting audit and rating service are canceled in terms of leasing and business services.

She said it was expected that the foreign banks and foreign insurance companies would receive rapid development in each pilot free trade area while the new-rising service industry represented by accounting audit and rating service will become the next focus for Chongqing Pilot Free Trade Area to attract investments.

Chongqing General Aviation Industry will be better developed

As China's general aviation industry develops rapidly in recent years, Chongqing is also seeking a development of a whole industrial chain of general aviation. In the abolished “Negative List”,the foreign intervention was de fi ned as “the design and manufacture of general aircraft is confined to joint ventures and cooperation”, which means that the foreign investment could participate into the design, manufacture and maintenance only through the way of joint ventures and cooperation.However, in the “Negative List in 2017” practiced from July 10, this regulation is adjusted to “the design, manufacture and maintenance of general aircraft which is 6 tons with 9 seats (or above) are confined to joint venture and cooperation”. Zhang Ning said, on the basis of “Management of Negative List”, you can do anything you like if there is no prohibition on laws. Foreign investors could invest with a legal form in the free trade area in the design,manufacture and maintenance of general aircraft that is below 6 tons and below 9 seats including the establishment of wholly foreign-owned enterprises.Zhang Ning also pointed out that although there is a limit on the weight of general aircraft and number of seat for foreign investors in the “Negative List in 2017”, the general aircraft that is below 6 tons and 9 seats exactly meets the demand of future general aviation in China. Driven by this adjustment, the general aviation industry in Chongqing will be better developed under the framework of Chongqing Pilot Free Trade Area.

Investment in Hong Kong and Macao can enjoy CEPA simultaneously.

Zhang Ning also made it clear that in accordance with relevant regulations, investments from Hongkong Special Administrative Region and Macao Special Administrative Region in the Chongqing Pilot Free Trade Area consulted the “Negative List in 2017”. However, in Closer Economic Partnership Arrangement (CEPA) with Hongkong Special Administrative Region and Macao Special Administrative Region, investors who meet the conditions will enjoy more favorable liberalization measures, which will be executed in accordance with relevant regulations.

For example, if it is regulated strictly and de fi nitely in“Negative List in 2017” that “It is forbidden to invest in the exploration, exploitation and bene fi ciation of rare earth minerals. Without permission, mineral mines, ore samples and production technology shall be prohibited from entering the rare earth mining area”, but it is regulated that Hongkong investors shall not invest in rare earth mining; investment in rare earth smelting and separation shall be limited to joint ventures in the new sub-protocol of CEPA.Then this will undoubtedly open a convenient door for Hongkong enterprises and capital to intervene in the rare earth industry. Zhang Ning hoped that this could ensure the Hongkong capital can make the service and non-service industries go hand in hand in the framework of Chongqing Pilot Free Trade Area and bring more abundant Hongkong capital into the areas like equipment manufacturing,opening of energy in Chongqing.

（The pictures are provided by Western Logistics Park )