China-ASEAN Panorama Think Tank：CFTZ to Energize the Development of CMQIP

(Written by Lin Han / Translated by Mo Tingting)“Two Countries, Twin Parks”, namely, China-Malaysia Qinzhou Industrial Park (CMQIP) and Malaysia-China Kuantan Industrial Park (MCKIP), is a flagship project of national-level investment cooperation between China and Malaysia. Last year, after the approval of Qinzhou Port Area, one of the three areas of China (Guangxi) Pilot Free Trade Zone (CFTZ), 16.05 square kilometers of 55 square kilometers under the administration of CMQIP can enjoy preferential policies from the CFTZ, which is the result of China's initiative in opening-up. It means that the core part of CMQIP can enjoy preferential policies of China’s free trade zone, which will contribute to greater openness and cooperation between China and Malaysia.  

Mr. Gao Hang, a researcher of China-ASEAN Panorama Think Tank, believed that under superimposed policy support from CFTZ, CMQIP could enjoy more policy dividends and bring tangible benefits to Malaysian enterprises. As a result, the CMQIP and MCKIP, boasting new impetus from the CFTZ, will enter a new stage of development.

Superimposed policy support from CFTZ will inject new impetus into “Two Countries, Twin Parks”

Michael Jan, a Malaysian specially invited researcher of China-ASEAN Panorama Think Tank, indicated that since the CFTZ was officially approved by the Chinese government last year, a part of the area of CMQIP has enjoyed preferential policies of the Qinzhou Port Area of CFTZ. It could be said that the CFTZ has made a qualitative improvement to the model of “Two Countries, Twin Parks”.

“It can be seen or foreseen that the Qinzhou Port Area of CFTZ will introduce more preferential policies to support the CMQIP, which is very beneficial to Malaysian enterprises. Before that, some bottlenecks restrain the cooperation in the CMQIP. I believe that after enjoying the policies of CFTZ, CMQIP will make some breakthroughs and substantive results in bilateral cooperation,” said Michael Jan.

What are the highlights of CFTZ? Lu Xinshe, Secretary of the Party Committee of Guangxi Zhuang Autonomous Region gave a hard-hitting answer, “Without ‘Two Countries, Twin Parks’, CFTZ will lose its luster; without the support of CFTZ, “Two Countries, Twin Parks” cannot achieve great development.”

Chinese President Xi Jinping has called for the bold and independent building of pilot free trade zones toward the highest standard for reform and opening-up in the new era. “The core of President Xi's requirements for the free trade zones is to emancipate the mind and have the courage to make breakthroughs,” said Gao Hang. Meanwhile, the spirit of “having the courage to make breakthroughs” will provide free trade zones with infinite possibilities.  

“Two Countries, Twin Parks” will enter a new stage  

According to the relevant work plan of Qinzhou Port Area of CFTZ, the following work will be the top priorities this year: To perfect the plan for international production capacity cooperation between China and Malaysia under the model of “Two Countries, Twin Parks”, implement the policy of supporting bird's nest industry, promote the project of “Capital of Bird's Nest in the World”, cultivate a transnational industrial system with the import and processing of bird's nest as the core, and focus on the industrial cooperation projects under discussion, such as Halal Industrial Park Project, Malaysia Innovation City and so on.

Speaking of the building of “China-ASEAN cooperation demonstration zone”, both China and Malaysia will actively explore and advance the construction of international free trade area under the model of “Two Countries, Twin Parks”, take the lead in exploring the investment facilitation, trade liberalization, financial internationalization, and other fields, further promote bilateral cooperation on “point-to-point” financial channels for opening-up, cross-border E-commerce, data-based free trade area and service trade, and further enhance the level of economic cooperation and trade between China and Malaysia.  

“Two Countries, Twin Parks” will register win-win results

Since the establishment of the CFTZ, the mechanism of “Two Countries, Twin Parks” has been constantly improved. To further enhance the cooperation between the two sides, Guangxi Qinzhou Free Trade Port Area Administration Committee organized a video meeting for representatives from Qinzhou Port Area of CFTZ and representatives from joint ventures, to inform the directors and shareholders of the Malaysian side of relevant information. On top of that, a Joint Board Secretariat (Bureau for Foreign Cooperation and Exchange) was set up to deepen the daily contact and interactive development of the “Two Countries, Twin Parks”.

The China-ASEAN Panorama Think Tank believed that the establishment of CFTZ would not only inject new vitality into the development of the “Two Countries, Twin Parks”, and boost the leapfrog development of the CMQIP, but also give stronger momentum to the pragmatic promotion of China-Malaysia cooperation. Especially in the era of “post-COVID-19”, the world calls for sincere international cooperation and practical implementation of specific projects. Therefore, concerted efforts should be made to reach a win-win situation under the flagship project of “Two Countries, Twin Parks”, which is also highly expected by the people of the two sides.

Source: China-ASEAN Panorama