Xiamen FTZ boosts global connectivity and economic growth through innovative measures– Beijing Review

Openness is a hallmark of Chinese modernization. China has established 22 free trade zones (FTZs) nationwide, specific areas where businesses enjoy preferential policies to promote international trade, each with distinct development goals and strategic orientations. Among them, the China (Fujian) Pilot FTZ in the country’s southeastern province of Fujian is strategically positioned to serve as a comprehensive reform testing ground that integrates openness and innovation, a model zone for deepening cross-Straits economic cooperation, and a hub for fostering open collaboration with countries along the Maritime Silk Road.

As a key subsection of the Fujian FTZ, the Xiamen Area of China (Fujian) Pilot Free Trade Zone (XMFTZ) leverages its geographical advantages to advance international logistics, spearhead institutional innovations and promote industrial development in alignment with these strategic goals.

Connecting worlds 

The XMFTZ was officially established in 2015, covering a total area of 43.78 square km. Over the past nine years, it has made significant strides in expanding openness and promoting international cooperation through continuous institutional innovations.

“As of this July, the XMFTZ had introduced 606 innovative measures, including 142 initiatives pioneered nationwide, and five of its practices have been recognized as ‘best practices’ among national FTZs,” Li Zhida, a logistics specialist with the Administrative Committee of the XMFTZ, told Beijing Review.

The XMFTZ boasts a favorable strategic geographical location, encompassing key seaports, airports and railway hubs within the city. Its proximity to Taiwan Province, accessibility to Southeast Asia and role as a major gateway to the Chinese mainland further strengthen its importance. Additionally, Xiamen serves as a vital node along the Eurasian Land Bridge and plays a key role in the Belt and Road Initiative (BRI), a China-proposed initiative to boost connectivity along and beyond the ancient Silk Road routes. In other words, this city is where the Maritime Silk Road converges with the Silk Road.

The Silk Road Maritime platform, the first international logistics service platform in China centered on maritime shipping, was launched in December 2018 by Fujian Transportation Group and Xiamen Port Holding Group Co. Ltd. It aims to enhance the service chain along the Maritime Silk Road by integrating ports, shipping and trade. This promotes a seamless, interconnected development model across these sectors, creating a golden maritime logistics corridor for countries and regions participating in the BRI.

“Since Silk Road Maritime’s inception, 60 dedicated shipping routes have been established through Xiamen Port, with 11,000 voyages completed and container throughput exceeding 12.3 million TEUs,” Li added.

A TEU, or twenty-foot equivalent unit, is a standardized measurement used to quantify cargo capacity in container shipping.

In addition to connecting the world through maritime transport, Xiamen is also a key city along the Silk Road. The China-Europe (Xiamen) freight train, the first international freight train route departing from an FTZ in China, has been operating since 2015. So far, it has made 1,335 trips, transported over 110,000 TEUs and handled goods worth 34 billion yuan ($5 billion).

The route has expanded from a single line to seven operational lines, covering more than 30 cities across 13 countries participating in the BRI. This railway corridor has opened an international logistics pathway linking the Eurasian hinterland, facilitating the movement of goods from Japan, the Republic of Korea and Southeast Asia, and strengthening the connectivity between the Maritime Silk Road and the Silk Road.

But having an advantageous geographical location alone is not enough. It must be combined with innovative industrial development. “The XMFTZ has developed 22 key industrial platforms, including an international shipping center, aircraft maintenance, cross-border e-commerce and integrated circuits, continuously empowering high-quality economic growth. The added value of industries in the zone has grown from 38.5 billion yuan ($6 billion) in 2015 to 109.4 billion yuan ($16 billion) in 2023, with an average annual growth rate of 13.9 percent,” Li said.

Innovative reform 

Haitian Terminal is one of the busiest terminals at Xiamen Port, handling over 2.8 million TEUs annually, with a maximum daily throughput of 10,000 TEUs. Despite this heavy traffic, the terminal rarely shows signs of bustling human activity. The reason lies in its extensive use of intelligent technologies, driving continuous smart upgrades that boost operational efficiency and improve employee experiences.

Haitian Terminal at Xiamen Port in Xiamen on August 6 (Yin Kang)

In the comfort of an air-conditioned office building, Yang Jian, an operator, sits in an ergonomic chair facing six screens. As he monitors the screens, he controls a steering wheel and operational buttons. His actions remotely trigger the movements of a stacker crane on the distant terminal, lifting, aligning and placing containers with precision.

Xiamen Port employee Yang Jian operates a remotely controlled electric stacker crane in Xiamen, Fujian Province, on September 5 (Yin Kang)

This operational setup highlights the global debut of a remotely controlled electric stacker crane at Haitian Terminal. Proudly manufactured in China with independent intellectual property, this crane serves as a vivid example of Xiamen’s efforts to build a smart port. Equipped with multiple panoramic cameras and a light detection and ranging scanning system, it allows operators to remotely observe the working environment and make precise decisions.

Additionally, the crane integrates advanced autonomous driving, 5G communication and artificial intelligence technologies, enhancing stability, safety and cost-efficiency.

Xiamen Port has independently developed a smart container logistics platform, leveraging technologies such as the Internet of Things and cloud platforms. The port has fully digitalized and paperless equipment handovers, enhancing the operational efficiency of port logistics systems.

“Previously, manual handovers took one to two minutes per container. Now, it takes only 30 seconds,” explained Wu Yiyan, operations manager at Haitian Terminal, in an interview with Beijing Review.

Through intelligent upgrades, Xiamen Port has optimized its workforce and operational processes, fostering hi-tech, high-efficiency and high-quality productivity. These efforts are a determined step toward building a world-class port.

In addition to technological innovation, institutional reforms and innovation are also key strategies for the XMFTZ to promote high-level opening up to the outside world. The XMFTZ implements the “pre-establishment national treatment + negative list + filing management” policy for investments.

In China, a negative list is a regulatory tool that outlines specific industries or sectors where foreign investment is either restricted or prohibited.

The policy aims to enhance governance and service standards through modernized practices and introduces convenience measures, such as fully electronic business registration, attracting numerous enterprises to settle in the XMFTZ.

Zheng Zongzuan, General Manager of Xiamen Qiming Star Cross-border E-commerce Comprehensive Service Co. Ltd., visited the Comprehensive Service Center of XMFTZ on September 5 to consult about overseas investment services.

“We registered and started operating in the XMFTZ in 2021, focusing on service projects related to the BRI. Xiamen offers a high degree of trade facilitation in areas such as customs clearance and the international trade single-window system, which greatly improves efficiency,” Zheng told Beijing Review.

The Xiamen Municipal Government also provides strong support for international investment. “The local government and the bureau of commerce have set up service institutions in many BRI participating countries and regions to facilitate China’s overseas investments. These institutions offer services like investment consulting, helping ensure the smooth execution of overseas projects and strengthening our confidence in going global,” Zheng added.

Leveraging its advantageous geographical location, Xiamen actively integrates itself into China’s reform and opening-up process, a process that kicked off in 1978 and has evolved and intensified ever since. The XMFTZ promotes the high-quality joint development of the BRI by upgrading with intelligent innovation, providing attentive government services and fostering an international, high-standard and first-class business environment, continuously improving its capacity for openness.

Copyedited by Elsbeth van Paridon

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