Heihe Pilot Free Trade Zone: The Driving Force Behind a Trillion-Yuan Foreign Trade Volume

Deep News12-01

At the Heihe Cross-Border E-commerce Supervision Center, Ding Chao, head of Heihe Free Trade Comprehensive Service Company, observed a surge in export volumes during this year's "Double 11" shopping festival compared to last year. Workers in the company's warehouse were simultaneously processing packages labeled "1210" and "9610" for export. "Thanks to the province's pioneering 'ride-sharing' model, single-trip transportation costs have dropped by 40%," said Zang Yuzhu, the company's operations director.

In the customs inspection area, batches of packages marked "Heihe-Blagoveshchensk" were swiftly loaded onto enclosed trucks. "Our 'three-in-one' customs clearance model has reduced inspection time by over 50%, making logistics more efficient," explained a Heihe Customs official. This high-speed coordination exemplifies the "Free Trade Speed" of the Heihe Pilot Free Trade Zone (Heihe FTZ), a key player in China's northern opening-up strategy.

Over the past five years, Heihe FTZ has leveraged institutional innovation as its core engine, achieving remarkable progress. Once a remote border area, it has transformed into a frontline hub for international trade, contributing significantly to China's northern economic expansion.

**Robust Growth in Trade and Logistics** During the 14th Five-Year Plan period, Heihe FTZ recorded a cumulative foreign trade volume of 109.198 billion yuan, with annual growth averaging 81.9%. The zone now handles over 90% of Heihe's total foreign trade, despite occupying less than 0.03% of the city's land. Key breakthroughs include imports of energy, grain, and herbal medicines, alongside new categories like pipeline natural gas, LNG, and LPG.

The number of active foreign trade entities surged to 340 in 2024, up 2.3 times from 2020, including 18 enterprises with billion-yuan turnover. Emerging sectors like cross-border e-commerce, bonded logistics, and border trade have flourished. Since its designation as a cross-border e-commerce pilot zone, Heihe's e-commerce trade volume skyrocketed from 475,000 yuan to 2.2 billion yuan. The bonded logistics center (Type B) has become a leader among border cities, importing over 90,000 tons of grain.

**Industrial Clusters and Cross-Border Synergy** Heihe FTZ has developed a "335" modern industrial system and six cross-border industrial clusters. Notable projects include: - **Energy**: Stable operations of Dongao LPG and Zhenrong LNG projects. - **Agriculture**: Yugu Biotech's 60,000-ton oat processing plant and Fengde Hengtai's粮油加工 facility. - **Logistics**: Construction of Yuexing Logistics Hub and Zhongcheng Guojin Logistics Park. - **Manufacturing**: Exports of 30,000+ specialized vehicles and machinery, with Liyuanda securing OTTC certifications for 300+ models.

The zone has invested 1.74 billion yuan in infrastructure, including the Heilongjiang Bridge Industrial Park, to support future growth.

**Institutional Innovation and Business Environment** Heihe FTZ has pioneered 229 institutional innovations, with 10 winning national awards and 65 adopted province-wide. Highlights include: - **Cross-border clusters**: Recognized by the State Council as a "Best Practice Case." - **E-commerce logistics**: The "multi-warehouse linkage" model enables "second-level customs clearance." - **Mechanical exports**: A new clearance model cut transport costs by 60%, boosting exports tenfold.

The zone also established China's first overseas administrative service station in Blagoveshchensk, offering 83 bilingual government services. Streamlined processes, like the "1-review-N-commitment" system, have improved efficiency by 70%.

**Financial and Legal Reforms** Financial innovations like "Free Trade E-Loans" and border resident创业担保 loans have facilitated 1.3 billion yuan in financing. Cross-border RMB settlements surpassed 30.7 billion yuan during the 14th Five-Year Plan, with 2024 alone exceeding 10 billion yuan. Legal services, including international arbitration and IP protection, have attracted nearly 100 foreign enterprises.

**Looking Ahead** From a border checkpoint to an open economic hub, Heihe FTZ's transformation is reflected in its multiplied trade figures, thriving e-commerce, and groundbreaking reforms. As it embarks on the next phase, the zone aims to carve new milestones in China's northern development strategy.

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