12 new free-trade zones to follow in Shanghai's footsteps

The central government has agreed in principle to approve 12 new free-trade zones (FTZs), three months after giving the special status to Shanghai.

The 12 would include Guangdong, which has been lobbying the central government by highlighting its economic ties with Hong Kong, and Tianjin , Xinhua cited an official source as telling its subsidiary the Economic Information Daily. It did not name the remaining 10.

A government source said last night that senior officials from the central government had already completed on-site research in Tianjin and Guangdong and the two FTZs were likely to be launched in about a year.

He said other candidates included Zhejiang's Zhoushan , which consists of several islands with a focus on the shipping business; Qingdao , an important port city; Chengdu , a southwestern business hub; Wuhan , a central province; and Hangzhou , where e-commerce giant Alibaba is based.

"China sets no limits on FTZ numbers and no timetables on building them, as long as they meet the requirements of an FTZ," Xinhua cited its source as saying.

Caesar Wong, a partner with the China Tax & Business Advisory at Deloitte, said growth-challenged Hong Kong should grab the opportunity of Guangdong's free-trade zone status by integrating better with nearby economies including Hengqin in Zhuhai ; Qianhai in Shenzhen; Nansha in Guangzhou and Macau.