Changjitu Regional Border Zone Gets State Approval

April 23, 2010 Posted by China Briefing Reading Time: 3 minutes

Apr. 23 – The Changjitu National Cooperation Zone has been established with state-level approval and is the first of a new kind of development zone in China, taking in specific cross-border responsibilities and trade.

The Changjitu area takes in the cities of Changchun, Jilin and the Tumen River boundary with North Korea, and includes the ethnic Korean area of Yanbian Prefecture in Jilin Province. It is the first of five new national cooperation zones approved by the State Council, specifically introduced to promote cross border trade and economic development.

The Changjitu Zone has connections with Mudanjiang in Heilongjiang, and serves principally as a manufacturing and export led facility to promote trade between Changjitu, North and South Korea, and Japan. The area will benefit significantly from the money being poured in to develop the Tumen River area, which includes a framework for low taxes, duty free imported machinery, income tax breaks and a variety of preferential policies concerning cross-border trade. The zone also provides exemptions from construction tax and education tax.

In total, Changjitu covers half of Jilin Province, making the zone a hot prospect for manufacturing businesses engaged with cross border trade between China, Korea and Japan. Companies involved with servicing these markets should consider the Changjitu zone as preferential policies, including pilot policies concerning additional incentives and tax breaks are to be introduced over time and as the area develops.

Cui Jun, Deputy Director-General, Tumen River Development Administration of Jilin Province with Chris Devonshire-Ellis

Chris Devonshire-Ellis, speaking in his capacity as a Business Advisory Council Congress member for the United Nations Development Program-supported initiative for the region said that the development of China has reached a stage whereby the onus is moving to developing trade links with its border areas. “The establishment of the Changjitu Zone is an important landmark for the region,” he said.

“The GDP of the region is expected to grow at a level four times that of the national average. Changjitu represents an excellent opportunity for the promotion of trade between China, North Korea, South Korea and Japan and will prove to be an important landmark zone in Northeast Asia.”

Changjitu has already established rail links through to Dalian and Harbin, additionally making it an attractive proposition for trade with Eastern Russia as well. Within the Changjitu zone, five base areas have been established, including a new industrial base, modern agriculture, science and technology, modern logistics, and a Northeast Asia International Business service area. Companies entitled to existing subsidies and incentives related to these disciplines will also be able to use them in Changjitu in addition to the zone’s preferential policies.