CHINA SYSTEM · OPERATING LOGIC
Read the concept through its operating structure
Pilot FTZs test institutions
Pilot FTZs test investment, trade, finance, data and administration within the customs territory; the entire FTZ is not a bonded customs zone.
Hainan now operates an island-wide customs boundary
Hainan began island-wide customs-boundary operation on December 18, 2025, combining liberalised international flows with managed mainland flows; zero-tariff treatment still depends on goods, entity, use, processing and destination conditions.
Comprehensive bonded zones are customs-supervised
Comprehensive bonded zones centre on bonded processing, logistics, repair, testing, display and trade, governed by fenced boundaries, ledgers and movement controls.
ETDZs and high-tech zones cultivate industry
National ETDZs focus on foreign investment, manufacturing and open economy; high-tech zones on technology firms, R&D and commercialisation; neither automatically creates a customs boundary.
Korean firms should choose functions, not labels
Korean firms should define customer, supply chain, port, talent, data, customs, tax, power, land and licence needs first, then verify which overlapping zone rules apply to which entity and goods.