At the China International Fair for Trade in Services in September 2020, General Secretary Xi Jinping announced that, "efforts shall be made to support Beijing to build a comprehensive demonstration zone for opening up the services sector; carry out more pilot programs; explore more replicable practices; and establish pilot free trade zones featuring technological innovation, open services sector, and digital economy". On September 24, Beijing Pilot Free Trade Zone was officially inaugurated, and on September 28, Beijing Pilot Free Trade Zone International Business Service Area was officially opened. The "Two Zones" mentioned in this document refer to the Integrated National Demonstration Zone for Opening up the Services Sector and China (Beijing) Pilot Free Trade Zone. The construction of the "Two Zones" is a major policy of the central government to support Beijing's opening up and development, and a great opportunity for Beijing to build a new development pattern.

The entire Chaoyang District has been included in the Integrated National Demonstration Zone for Opening up the Services Sector. The CBD (about 4.96 square kilometres) and Jinzhan International Cooperation Service Zone (central area and part of eastern area, about 2.96 square kilometres) of Chaoyang District are an integral part (a total of about 7.92 square kilometres) of Beijing Pilot Free Trade Zone International Business Service Area.

Enterprises of all types of ownership can have better industry access opportunities. Financial access restrictions are further relaxed, foreign investment institutions are supported to participate in the pilot overseas investment by qualified domestic limited partners, and restrictions on the scope of open market investment are gradually liberalized. Wholly foreign-owned enterprises are supported to become private equity fund managers through applications to equity investment and asset management businesses. Qualified private equity securities and investment fund management companies may transform into public equity fund management companies through applications. In addition, a series of open policies have been formulated in key industries such as information services, business services, education, and culture. For example, in the field of information services, the domestic Internet virtual private network business (VPN, foreign equity ratio not exceeding 50%) is opened to foreign investors. In the field of business services, Beijing takes the lead in allowing multinational companies to establish wholly foreign-owned financial companies. In the field of education, foreign investors are supported to invest and establish private vocational skills training institutions. In the cultural field, foreign investment in cultural and artistic performance groups (the Chinese partner shall hold the majority of shares) is allowed in the Tongzhou Cultural Tourism Zone.

Beijing launched pilot programs to facilitate capital project transactions and explore pilot programs for the domestic and foreign currency capital pools of multinational companies to deploy and use domestic and foreign currency funds in the same capital pool so as to facilitate global capital arrangements for multinational companies. It piloted in the integrated domestic and foreign currency bank account system in order to provide high-quality, safe and efficient bank account services for market entities by integrating Renminbi bank settlement accounts with foreign exchange accounts and supporting enterprises to show their domestic and foreign currency funds through one bank account and fill one form in one visit to the bank. It supports the establishment of domestic and overseas parallel funds, takes the lead in implementing a macro-prudential management model for foreign debt nationwide, and abolishes examination and approval for foreign debts of enterprises on a case-by-case basis. In the future, it is going to gradually realize full convertibility for foreign debts of non-financial enterprises in the Zhongguancun Science Park.

In terms of qualifications, the access restrictions for eligible professionals with overseas professional qualifications in the fields of finance, architectural design, planning, etc. are further relaxed; and international qualifications in finance and other services sectors are subject to recognition. In terms of innovation and entrepreneurship, Beijing supports foreign scientists to take the lead in undertaking government-supported science and technology projects; and allow foreigners to start and have shares in domestic-funded companies with their permanent residence ID cards. In terms of livelihood security, Beijing provides convenience for overseas high-end talents to enter and exit China and provide more convenience for foreign exchange purchases and remittances related to livelihoods such as allowances, and tuition fees.

In terms of licensing, Beijing tries to promote the notification and commitment system of administrative services. In terms of land use, it innovates industrial chain land supply allowing upstream and downstream enterprises in the industrial chain to obtain land use permits at a lower cost on the premise of meeting more market entry conditions (This policy is only available in the Beijing Pilot Free Trade Zone and the Zhejiang Free Trade Zone Expansion Area). It also tries to apply a comprehensive land-use model, which means that a piece of land will be used for various purposes. In terms of supervision and services, it supports the trial implementation of negative list management for cross-border trade in services in Hainan and Beijing, tries the inclusive and prudential supervision over new economic patterns and strengthens oversight over new technologies and new products during and after operations.

In terms of supporting venture capital, Beijing introduces pilot policies on preferential corporate income tax for corporate venture capital, and eligible enterprises will be exempted from corporate income tax based on the shareholding ratio of individual shareholders at the end of the year. In terms of taxation of high-tech enterprises, eligible and recognised high-tech enterprises above the designated scale that engage in the production and R&D of integrated circuits, artificial intelligence, biomedicine, key materials and other fields in Beijing will be given income tax preferential treatment according to the provisions upon application. In terms of technology transfer, Beijing focuses on specific areas, carries out pilot projects of preferential technology transfer income tax policies, increases the exemption of technology transfer income from 5 million yuan to RMB 20 million yuan, and appropriately relaxes restrictions for technology transfer that enjoy tax incentives. In terms of tax incentives for foreign talents, foreign talents are eligible for preferential individual income tax treatment in certain regions. In terms of high-quality cultural consumption, it actively studies and adjusts the current import tax policy to encourage the return of overseas cultural relics.

Since the opening of the Beijing Pilot Free Trade Zone International Business Service Area, Chaoyang District has seized the opportunity and acted quickly to promote the construction of the "Two Zones" under the support of the Beijing Municipal Party Committee and the People's Government of Beijing Municipality. Thanks to the support from higher-level authorities and our common efforts, the construction of the "Two Zones" achieved satisfactory progress. Since the establishment of the Beijing Pilot Free Trade Zone, Chaoyang so far had 14,790 new domestic-funded enterprises, accounting for 16.67% of the total in Beijing, up 22.39% year-on-year; 563 new foreign-funded enterprises, an increase of 55%; USD 4.626 billion foreign capital in contractual amount, an increase of 55.4%; and realized FDI of USD 1.34 billion, an increase of 46.9%. We keep up the momentum for growth.

Since the construction of the "Two Zones", Chaoyang has successfully built Beijing's first free trade zone international talent one-stop service centre, launched Beijing's first financial service platform, and introduced 19 pioneering and pilot policies and projects, including China's first alternative investment insurance asset management company—China Life Investment Insurance, Beijing's first foreign-owned S-funds—Kohler Capital, and China's first batch of pilot projects of integration of domestic and foreign currencies in cross-border capital pools.

Focusing on the strategic positioning of the capital city as a national political centre, a national cultural centre, a centre for international communications and an international centre of innovative technology (collectively referred to as the "Four Centres"), Chaoyang adheres to the keynote of advancing supply-side and demand-side structural reforms, boosts the "dual circulation" development pattern of Beijing in which domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement, and constantly strengthens the functional positioning of Chaoyang as an "international first-class business centre". With key functional areas and key advantageous industries as the core, Chaoyang has gradually formed a system of institutional innovation and factor supply that is consistent with the international advanced rules. To facilitate the high-quality construction of the "Two Zones", Chaoyang will mainly focus on the following three aspects:

Chaoyang is going to highlight and strengthen the international, leading and spearhead characteristics in the construction of the "Two Zones" with a global vision, accelerate the exploration and implementation of open-up policies and systems with strong international market competitiveness, and enhance the ability to attract international high-end factor resources. The district is going to concentrate on three types of increment. First, we will attract new foreign investors, focus on new fields and industries open to foreign investment, and increase the introduction of global top enterprises and international organisations that have not yet entered China. Second, we will expand new foreign-related businesses and sectors. In combination with the relaxation of business access restrictions in the fields of finance and commerce, we will deeply tap the resource potentials of regional multinational headquarters, representative offices and branches, and guide them to develop, upgrade or set up new departments. Third, we will explore new models and new paths. Based on the construction of a new ”dual circulation“ development pattern and relying on the big domestic market, Chaoyang will accelerate the development of cross-border e-commerce and other digital trade in overseas markets, and achieve a breakthrough in the scale of cross-border trade businesses.

On the one hand, we will give full play to Chaoyang cadres' proactivity in seizing opportunities, daring to explore and undertake hard work and fully mobilize the initiatives of market players. Having thoroughly studied the policy application scenarios of reform pilots, Chaoyang will adopt the "project + policy" combination in financial, science and technology, business and other industries first to open up the industrial path of policy implementation. We will accumulate experience and scale it up, thus driving breakthroughs in other industries and comprehensively improving the brand effect of "Chaoyang services". On the other hand, we should establish a systematic promotion mechanism to achieve sustainable development. We will focus on both the implementation of short-term key projects and the development of long-term systems and mechanisms. In addition, Chaoyang will fully implement the "sandbox management" in key industrial fields for continuous innovation and leading in mechanisms, and yield more internationally competitive institutional innovation achievements.

Aiming at the goal of creating a world-class business environment, Chaoyang explores the way ahead in the fields of legal norms, government services and intellectual property protection to enhance the international comprehensive supporting services. On the one hand, Chaoyang will facilitate investment, trade, and the cross-border flow of capitals, talents, data and other elements, deepen the construction of the International Arbitration Centre, and holistically create a fair market environment in which domestic and foreign enterprises are treated equally and compete fairly. On the other hand, Chaoyang will establish a whole-process service system for international talents, accelerate the construction of international talent communities such as international schools, hospitals and talent apartments, and constantly optimize the "overseas-like" living and service environment for international talents.

In addition, Chaoyang will also innovate the "investment promotion + service" system to attract international high-end resources. We will strengthen international investment promotion, actively prepare for the establishment of a global investment promotion system and carry out targeted global market-oriented investment promotion entrusted to the Executive Centre and other agencies. We will fully open the Beijing CBD Centre for Investment Promotion Services, set up professional investment promotion service companies, and establish the Shanghai office of Beijing CBD's global contact point. We will also improve the Measures of Chaoyang District on the Identification and Incentive for Investment Promotion Intermediary Service Agencies, and promote investment with business and market-oriented investment promotion.

To play a better part in the current new development pattern and take local advantages, Chaoyang will focus on building a pilot free trade zone highlighting scientific and technological innovation, open service industry and digital economy, and give full play to the advantages of the "Three Zones" of the Integrated National Demonstration Zone for Opening up the Services Sector, Beijing Pilot Free Trade Zone and the pilot digital trade zone. We will maintain a global vision, abide by international rules, and actively build a model platform for the capital's high-level opening up by focusing on preliminary trials of pilot policies, guiding with systematic innovation and model demonstration, and relying on international high-end element integration and opening up. Chaoyang will promote the construction of the "Two Zones" from the following five aspects:

First, set an example for institutional opening-up areas. By closely focusing on goal of developing the "Beijing model" for opening-up in the capital, we will actively study and try out liberalization of investment and trade to a higher, deeper and wider extent, and take the lead in making breakthroughs in key industries.

Second, play a better role in global resource gathering areas. Based on the channel advantages linked to the whole world, Chaoyang will further strengthen the global resource allocation, enhance our status in global supply chains and value chains, and increase our attractiveness as an ideal location for multinational headquarters.

Third, become a frontier open area of international finance. Under the context of the internationalisation of Renminbi and the opening-up of the capital account, a multi-point supporting and fully functional institutional environment for the development of the financial industry will be formed. Chaoyang will set an example for the capital to accelerate the opening-up of the financial industry at a higher level.

Fourth, build a demonstration area for new scenarios of digital trade. Chaoyang will build a high-level open system of digital trade in line with international standards, realize the transformation and development of more start-up projects and leading or unicorn enterprises, and enhance the strategic planning for digital trade innovation and development.

Fifth, establish a pilot zone for innovation in modes of service trade. By giving full play to Chaoyang's advantages as a two-way channel for foreign trade and consumption, we will develop effective overall plans for expanding domestic demand and opening up external markets and take the lead in building a joint hub of international and domestic markets.

Chaoyang will build an interactive hub for international capitals through enhancing the attractiveness for foreign financial institutions, promoting the capital retention and transformation of multinational companies, and building a service certer for the "going out" of Renminbi; build a functional hub for international businesses through establishing an offshore cross-field audit, accounting and legal service centre, a certification and training centre for internationally accepted qualifications, and an entrepot hub for service trade. We will promote the return and expansion of overseas consumption through the development of cross-border consumption, international health care and international education.

Based on the policy list, Chaoyang will make clear hierarchical competent departments and key links of trial policies implementation to ensure coordination at different levels and optimize the systems and processes. Based on the space list, we will accurately feedback the sites selected for emerging projects, bring the space layout to be supplied under quantitative control, and constantly strengthen refined and full-cycle management of resources. Based on the list of businesses, Chaoyang will strengthen the target management of visits, negotiations and introductions, clearly sort out the links of industrial introduction, foreseeably draw forward-looking investment promotion maps for industrial chains, systematically plan the completion of industrial and ecological chains, and gradually improve the “clear account” to attract businesses and industrial chains.

Aiming at the goal of creating a world-class business environment, Chaoyang explores the way ahead in the fields of legal norms, government services and intellectual property protection to enhance the international comprehensive supporting services. On the one hand, Chaoyang will facilitate investment, trade, and the cross-border flow of capitals, talents, data and other elements, deepen the construction of the International Arbitration Centre, and holistically create a fair market environment in which domestic and foreign enterprises are treated equally and compete fairly. On the other hand, Chaoyang will establish a whole-process service system for international talents, accelerate the construction of international talent communities such as international schools, hospitals and talent apartments, and constantly optimize the "overseas-like" living and service environment for international talents.

By setting up an international business district in Beijing CBD, Chaoyang will continuously accelerate the convergence of global top resources and promote global resource allocation to a new height through the adoption of key policies, improvement in a soft and hard environment, and enhancement in operation efficiency. We will build an international cooperation service area at Jinzhan and accelerate the setting up of a new space for international exchanges, which will be guided by the plan of the area and through policy preferences such as functionally targeted implantation and composite utilization of space. In addition, we will build an area for international technology and innovation cooperation at Chaoyang Science Park to accelerate the convergence of international technology elements and the introduction of international R&D businesses by focusing on international technology trade, bonded research and development, innovation and transformation and collaborative promotion.