The city of Zibo, Shandong province will build its first comprehensive bonded zone, following recent approval by the State Council.

A comprehensive bonded zone is a special customs supervision area established by the Chinese government with reference to the free trade zones (parks) that are commonly used internationally.

The design sketch of the Zibo Comprehensive Bonded Zone [Photo/lznews.cn]

In addition to preferential policies for foreign trade and an array of other functions, the zone is also ideal for developing bonded processing, logistics and services, and other businesses.

The Zibo Comprehensive Bonded Zone will be based on the former Zibo Bonded Logistics Center (Type B) established in April 2011. The comprehensive bonded zone has added many new functions, such as bonded processing, bonded R&D and bonded services.

According to the official approval, the planned area of the Zibo Comprehensive Bonded Zone measures 1.84 square kilometers.

A rendering of the Zibo Comprehensive Bonded Zone [Photo/lznews.cn]

The approval of the comprehensive bonded zone is significant for the development of Zibo, said local officials.

The zone will become a new platform for Zibo to open up to the outside world, help the city better seize cooperation opportunities brought about by the Belt and Road Initiative, enhance international trade freedom, and make better use of both domestic and foreign markets and resources.

It will provide Zibo with a new economy incubator, which is conducive to promoting more new technologies, industries, and business models to facilitate innovation-driven development, according to local officials.