Streamlined clearance at Shanghai Free Trade Zone sets benchmark for efficiency

The Shanghai Pilot Free Trade Zone (FTZ) has created a benchmark for its peers nationwide with its streamlined customs clearance and government approvals, bringing slashed costs and speedier logistics for enterprises.

At Shanghai's largest cold chain logistics center for fruits, nearly 10,000 containers are imported annually from South America alone.

To keep tropical fruits fresh after traveling thousands of miles, a new international trade mechanism has been developed and perfected in the city's FTZ.

"Previously, foreign ships were not allowed to engage in coastal transport within China. So bananas from South America had to be routed through Busan, South Korea, before reaching the three major ports in north China. Now, with the FTZ allowing coastal transport by foreign vessels, bananas can be transferred directly from Yangshan Port to the three northern ports, reducing shipping time by one to two weeks and significantly cutting costs for companies," said Jiang Jianli, logistics director of Goodfarmer Foods Holding Group.

The Shanghai Port now handles over 49 million standard containers annually, or an average of 1.5 containers are processed per second.

Managing such a high volume of ships and goods while maintaining order requires advanced systems. A decade ago, companies had to physically submit piles of documents for customs. Now, the process has gone digital.

"The Shanghai International Trade Single Window links 22 regulatory departments, including customs and maritime affairs departments, into one platform. This provides businesses with one-stop service and automated real-time declarations around the clock," said Zhang Jie, deputy director of the Shanghai Municipal Commission of Commerce.

The system has reduced the time required for cargo declarations from one day to half an hour and for ship declarations from two days to two hours.

It now supports over one-quarter of China's foreign trade, facilitating the country's exports and imports. Items like Spanish ham, New Zealand honey, Mongolian cashmere, Syrian soap, Pakistani handicrafts, coffee beans from East Timor and international beauty brands now reach the Chinese market more quickly.

Trade facilitation in the FTZ has played a crucial role in the China International Import Expo (CIIE), held annually since 2018.

"Global products now become available in Shanghai instantly after they are launched, which is very convenient," said a local resident.

Businesses benefit from streamlined processes and consumers enjoy faster access to products, thanks to the government's proactive efforts.

The average approval time for business licenses has been cut by 90 percent, and the required application materials have been reduced by 70 percent.

More than 300 business-related approval items are now fully processed online, boosting innovation and entrepreneurship.

Beyond food and consumer goods, the FTZ has also made waves in the art world.

The Shanghai FTZ was the first to implement the system for temporary entry of cultural relics, doubling their permitted stay in China.

Artifacts can enter bonded warehouses within 24 hours of arrival and be displayed or traded across the country while under bonded status.

From 2013 to 2023, the total value of cultural relics and artworks entering and leaving the Shanghai FTZ reached over 100 billion yuan (more than 14. 16 billion U.S. dollars). The number of art pieces processed annually at the FTZ grew from less than 100 to more than 10,000.

In the Lingang New Area, a part of the FTZ, smart heavy-duty trucks, taxis, and buses have become part of daily life.

Five years ago, the first wholly foreign-owned vehicle manufacturing project in China was launched in Lingang, completing construction and starting production within the same year.

Since the establishment of the Lingang New Area five years ago, its GDP has grown by an average of 19.8 percent annually, industrial output of major businesses by 34.6 percent, and fixed asset investment by 33.4 percent.

The area has also attracted around 100,000 talents with an average annual hike of 97 percent.

Streamlined clearance at Shanghai Free Trade Zone sets benchmark for efficiency

A group of experts said they are expecting China's economy to post steady growth in 2026 despite an increasingly uncertain global situation that posts challenges to the country's development.

The experts made the remarks in a recent interview with China Global Television Network in south China's tech hub Shenzhen, Guangdong Province.

An official for Qianhai, a special economic zone that has become a critical growth engine for south China's Guangdong-Hong Kong-Macao Greater Bay Area city cluster, said that like other major economies around the world, China is also facing increasing challenges, but he believes the country will post steady growth in 2026.

"I mean [for] other major economies right now, they [are] kind of also facing a bit of challenges. Geopolitical risks are rising. Trade war [has] not yet completely ended. But having said that, I think [for] China, there is also a domestic-oriented economy. You know that 80 percent -- more than 80 percent -- is still domestic demand. And also we start to see some kind of, particularly in the areas like the new industries, but even in some kind of the broad-based industry, we still see the manufacturing investments keep rising despite the uncertainties, despite all these various kinds of pressures. I expect China's economy still going to remain kind of a stable piece of growth. [The growth rate of] four point five to five percent, I think, is still going to be quite achievable for the next twelve months or so," said Qu Hongbin, chief economist for Qianhai authority.

Greg Smith, chairman at AustCham South China, an institute for promoting Australia-China commercial relationship, said China's resilient partnerships with other countries around the world can help the country navigate through the uncertain global landscape.

"I think that you'd be a very brave person to bet against the Chinese economy. It's been resilient over a long period and it's gone through some fairly strong headwinds and come out with still the flag waving. Taking some of the issues that you're talking about with tariffs and the geopolitics that's in place, there's resilience in the partnership [which] is what all the countries are looking for in their trades. So the stronger relationships that you have, I think that's going to really be the bedrock to making sure that we do hit the 4.5 [growth] rate. I think all the countries around the world are looking for trusted partners to be able to work and trade with," said Smith.

Sunny Tan, chairman at the Hong Kong Productivity Council (HKPC), said he believes the rest of the world wants to be part of China's economic growth.

"I would say that China has a very, very good number -- achievable number. And I can see the big market by itself, the resilience, and also [it] is really providing a certainty in the time of uncertainty. Our country can continue to grow as planned. At the same time we can see very good interest from around the world, who wants to be part of this growth, and be wanting [who wants this growth] to be in China," Tan said.

Qin Youming, founder and CEO of Manifold Tech, a startup based in Shenzhen, said the entrepreneurs still see opportunities in globalization and companies should be quick in adapting themselves to the changing environment to survive.

"For market wise, we still see there are opportunities in globalization even though there are a lot of geopolitical matters going on. But the uniqueness of the Greater Bay Area, I think, is still unmatched, like the talents we can find here, the craftsmanship, the well experienced engineers here, is [are] still unmatched. I think even though there's uncertainty around the world, the business has to grow globally. Anyone who can adapt [themselves to] this quickly can survive," he said.

Experts expect China's economy to continue growing amid uncertainties in global landscape