China’s State Council has recently approved to the upgrade of export processing zones in Nanchang and Kunming to comprehensive free trade zones.

The comprehensive free trade zones are special customs supervision zones that are set up at the approval of China’s State Council in Mainland China.They enjoy taxation and foreign exchange policies different from other ports.

The Kunming Comprehensive Free Trade Zone consists of Zone A and Zone B. Zone A, now in operation, is located at Kunming Export Processing Zone and covers an area of 0.58 square kilometres. Zone B is in the vicinity of Kunming Changshui International Airport and is expected to cover an area of 1.42 square kilometres. Zone A will focus on industries with the characteristics of Yunnan and neighbouring countries, such as resource-based industries, the jewellery industry, the biomedical and food industries, all highlighting the functions of bonded processing and bonded logistics. Zone B will rely on Changshui Airport to develop international re-export trade, storage and processing industries, highlighting the functions of bonded trade, bonded services, bonded logistics, bonded processing and bonded exhibitions.