China officially approves three new free trade zones

[BEIJING] China's government approved on Tuesday the formation of three new free trade zones (FTZ) in the city of Tianjin, southeastern Fujian province, and southern Guangdong province, the official Xinhua news agency reported.

The three new free trade zones along China's eastern coast - mooted for several months but officially given the green light on Tuesday - will copy the model of the Shanghai FTZ established in 2013 as a testing ground for looser rules governing currency conversions and foreign direct investment.

The Shanghai FTZ has been considered a success by the country's leadership and will be expanded as well, according to state-owned China Central Television's nightly broadcast on Tuesday.

President Xi Jinping has talked up the FTZ scheme in recent weeks as a tool to spur investment in technological research and innovation as the country's economic engine cools off.

China's government has officially forecast national GDP growth in 2015 to fall to 7 per cent.

REUTERS