Chongqing to be given bonded area status

The city of Chonqqing is set to become the first inland bonded area in China, after a resolution by the State Council, state media reported. Bo Xilai, secretary of the Chongqing Municipal Committee of the CPC, told Beijing’s Global Times that Chongqing will be granted special tax status, allowing the trade area to impose no taxes for trading and tax rebates for exports. Bo said that the decision was in response to efforts in Chongqing to create favorable opening up conditions in recent years, and added that Chongqing could be a first of a number of inland cities that are given bonded status. Although Chongqing is less developed than Tianjin, Shanghai and Beijing, Bo said the city can now work with foreign companies to promote greater opening up in central China. China’s first bonded area was approved for northern Shanghai in 1990 and since then 15 more have been built nationwide.