Guangdong studies FTZ affiliation with HK and Macao

Guo Wanda, director of the Shenzhen branch of the China Development Institute, said that Guangdong should expand co-operation with Hong Kong and Macao to build the FTZ, as the SARs' participation offers Guangdong a unique advantage compared with other areas in the mainland.

"Nansha, Qianhai and Hengqin are all adjacent to Hong Kong and Macao and should seek further economic ties with the SARs," he said.

Located at the mouth of the Pearl River, Nansha district covers more than 803 sq km. The Guangzhou government aims to develop the district, a State-level pilot development zone, into a new engine for the city's economic growth.

Nansha could become a crossroads where Hong Kong's financial and technological strengths are used to develop innovative industries, according to Guangzhou Mayor Chen Jianhua.

Qianhai, which covers only 15 sq km, borders Hong Kong. The Shenzhen city government aims to give top priority to Qianhai in the development of service industries, which give Hong Kong its advantages.

Hengqin, which borders Macao, covers 106.4 sq km. It will be well-placed to help Guangdong deepen economic cooperation with Macao and Hong Kong, according to Niu Jing, director of the administrative committee of the Hengqin new area.

Niu said that Hengqin island, which is three times the size of Macao, will give priority to investment from Hong Kong and Macao while also seeking global investment. Hengqin is also expected to be built into an "open" island closely connected to Hong Kong and Macao.

An FTZ is a place where goods can be imported, manufactured and exported without the intervention of customs authorities. Officials said that the Shanghai FTZ will provide world-class transport and communications facilities and a tax-free environment for domestic and foreign enterprises as a major hub of their supply chains in Asia.