China's Nansha Free Trade Zone In Dubai Cooperation Deal
by Lorys Charalambous, Lowtax.net, Cyprus
13 September, 2016
The Nansha Area of China's Guangdong Pilot Free Trade Zone (GDFTZ) has signed a cooperation deal with the Dubai Airport Freezone Authority, as part of the Chinese Government's ongoing efforts to deliver on its "One Belt, One Road" initiative.
As part of these efforts, China is, among other things, seeking to establish a maritime "Silk Road," and in December 31, 2014, it established the GDFTZ, a grouping of three coastal areas, all within Guandong province, each offering preferential tax and non-tax arrangements and with their own specialisms: Nansha in Guangzhou; Qianhai and Shekou in Shenzhen; and Hengqin in Zhuhai.
Nansha, the largest of the three, with an area of 60km squared, includes Guangzhou's Nansha Bonded Port Area. It was set up to provide a conducive operational and tax environment for manufacturers as well as shipping companies. The other two areas are focused on financial services and leisure and recreation services.
Through its One Belt, One Road initiative, China is hoping to expand exports along trading routes from China to Europe, by reaching out to those countries in Central Asia, West Asia, and the Middle East and agreeing to expand trade relations and cooperate more deeply, particularly in trade and transhipment matters.
The cooperation deal with the Dubai Airport Freezone Authority (DAFZA) is intended to boost trade and investment with and through Dubai, with the deal covering: information technology, cross-border e-commerce, and shipping logistics.
DAFZA offers a number of tax incentives to businesses, including 100 percent exemption from corporate tax and import and export tax, and allows 100 percent foreign ownership.
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