A bonded free trade zone in the Zhangjiang High-Tech Park of the China (Shanghai) Pilot Free Trade Zone is approved by the Shanghai government on July 21. [Photo/Official WeChat account: waigaoqiaowindows]

The Shanghai government approved the establishment of a bonded free trade zone (FTZ) in the Zhangjiang High-Tech Park. It will prioritize the development of software and information services, high-tech manufacturing, and modern services, according to a detailed plan released on July 21.

The move is expected to inject new momentum into Zhangjiang's future development. Benefiting from preferential policies in the pilot FTZ and special customs supervision area, Zhangjiang will take a strong leap forward in the development of scientific and technological innovation.

The newly-approved zone is both a free trade zone and a bonded zone and enjoys the benefits of both, making it a great destination for high-tech enterprises. Qualified international goods will benefit from the bonded policies of the area, which benefits the research and development (R&D) of high-tech products, according to Li Jiuling, president of the School of Customs and Public Economics of Shanghai Customs College.

Li added that Zhangjiang is the core area of Shanghai for the development of science and innovation. Zhangjiang is now a hub for high-end industries and R&D centers, and it plays a leading role in the scientific development of the Yangtze River Economic Belt. The newly-approved zone will help Zhangjiang form a complete industrial chain for R&D.

Chen Bo, director of the Optical Valley Institute for Free Trade, said that the bonded FTZ is expected to facilitate trade in Zhangjiang, and provides the park with industrial policies for the development of the high-tech industry, which will help internationalize science and technology. In this way, not only are the costs to enterprises greatly reduced, but the business environment of Zhangjiang is also significantly improved.

Benefiting from these favorable policies, enterprises in bonded areas in the Shanghai FTZ are expected to take off in the future. The operations of bonded areas will also be further improved in the future, developing the Shanghai FTZ into an important hub for global innovation.