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But the Tianjin East Free Port will enjoy more preferential policies on financing and tax than the Yangshan Free Port. And although both free ports cover the same business including international trans-shipment, distribution, purchase, transit trade and export processing the Tianjin free port will be more open.

This has sparked a rush of interest from international investors, who have been in talks with the Tianjin East Port Construction Development Co Ltd, responsible for planning and developing the Tianjin East Port.

"There is huge potential, and the business environment here is maturing," said Yu Liming, director of business development at China Merchants Holdings (Hong Kong) Co Ltd. The company has made an initial investment of 1 billion yuan to support logistics and processing in the first phase of the Tianjin East Port, and "it will add more investment".

HSBC is also considering joining the port, but no figure has yet been set, said Russell W Shields, an executive from the bank.

The free port is expected to expand in the future and the Chinese government is also likely to approve more free ports around the nation on the basis of how well the Tianjin East Free Port operates.

(China Daily 02/09/2007 page13) 

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