Inland free trade area starts construction in SW China

CHONGQING, June 2 (Xinhua) -- Southwest China's Chongqing Municipality began construction of its free trade area, the first of its kind in the deep inland of the country, on Tuesday, in an effort to boost economic development in the area.

The first phase of the Cuntan Bonded Area covers 2.67 sq km and will cost 3 billion yuan (439 million U.S. dollars). It will be completed and put into operation at the end of this year.

The 8.37-sq km Cuntan Bonded Area centers both the Cuntan Harbor and the Jiangbei International Airport. The whole bonded area, to be built in three phases, will be completed in 2015 with a total investment of about 10 billion yuan.

Chongqing Vice Mayor Huang Qifan said the bonded area will greatly push the development of Chongqing's exports-oriented economy and accelerate the opening up of central and western inland cities.

Enterprises in a bonded area enjoy such preferential policies as tax rebates for exports and free tax for trading within the area. China has established ten free trade zones in eastern coastal areas.