The Free Trade Zone (FTZ) of Tianjin harbour,established on May 12 ,1991 with the approval of the StateCouncil,is a com prehensive special economiczone that is open to the outside world under customs protection.Established international busin ess practices are adopted in this zone of typical Chinesecharacteristics . Enjoying the most preferential policies granted by the state,it has broad prospects for development on account of its location in a major harbour. The watchword of the FTZ is to follow the latest trend in world trade,facilitate the circulation of materials and base itself on warehousing and the processing industry.The business line of the FTZ covers world trade the processing of products for export , bonded warehousing , as well as shipping,packaging,delivery of goods,real estate and other acti vities closelyassociated with the functions of the FTZ.

The Tianjin FTZ covers an area of five square kilometres which will be expanded to seven square kilometres in due time.it is only one kilometre from Tianjin New Harbour, The largest of its kind in north China . Tianjin Harbour maintains business contacts with more than 300 harbours in more than 160 countries and regions and operates 70 or so regular shipping lines.North China'largest container dock is situated in this harbour,which is one of the starting points of the Eurasia Continental Bridge.The Beijing-Tianjin-Tanggu Expressway leads directly into the FTZ , which is only 30 minutes away from Tianjin Airport , the largest cargohandling airport in China, and 90 minutes from Beijing Airport . The railways in the FTZ are hooked with the country's trunk railways , which makes it very convenient for the transportation of import and export commodities. Thus Ocean,land,air and railway transportation becomes an integral wh ole in the Tianjin FTZ.The FTZ is 55 kilometres from downtown Tianjin and 170 kilometres from Beijing. For the 11 northern Chinese provinces ,autonomous regions and municipalities and the Republic of Mongolia,it is the nearest gateway to the sea . For foreign business people , the Tianjin FTZ provides the best access to these regions.

The Administrative Committee of the FTZ is empowered by the municipal government to handle all the affairs in the FTZ, including the registration of enterprises,the lease of land,planning and construction,and procedures for foreign visits.A new managerial mechanism has been es tablished and improved according to the trend of the market economy and international practices.Registration of enterprises in the FTZ is streamlined,so that those applying for the establishment of new companies never fail to get replies in three days'time. A capital construction and service centre is always ready to serve the needs of investors.

After a period of development , the FTZ has won its position as a centre for worldwide circulation and distribution of materials.Exhibitions are held from time to time to promote trade . The FTZ is also engaged in the trading and processing of imports and exports,and makes big efforts in the develement of finance,insurance,commissioned shipping service,consultancy and other services,thereby providing excellent conditions for diverse economic undertakings and international business in the FTZ.The one square-kilometre Baotai industrial Park, jointly invested by the Tianjin FTZ Administrative Committee and the Administrative Committee of the Tianjin Economic and Technological Development Zone,is devoted mainly to the development of technology-intensive and energy-saving processing industrial projects that guarantee to create high value and cause no pollution.Few development zones in the country offer more preferential treaments and better infrastructure and more broad development prospects than the Baotai industrial Garden.

So far five square kilometres of land has been developed.the FTZ,where supply of water,electricity and gas ,telecommunications service and roads are available.

By the end of 1998, more than 3,000 foreign-invested companies had been approved in the zone,attracting a total investment of 3.7 billion US dollars that included a total contractual investment of 2.5 bill ion US dollars.Seventy-eight countries and regions,including the Unted States,Japan ,the Republic of Korea,Canada,Singapore,Australia and Germany, and 25 provinces, municipalities and autonomous regions in China , have invested in the zone,with foreign investors making 80 percent of the total investment.Apart from all the state legislation concerning foreign investment,Tianjin also adopted five local lawsin October 1993 to further guarantee the lawful rights of investors and business people operating in the zone.