Beijing gives 5-year report card for 'two zone' development

China's capital city Beijing has made strong progress in opening up and institutional reform over the past five years through its "two zones" initiative, city officials announced Monday.

The "two zones" initiative, which refers to Beijing's initiative for building the pilot free trade zone and the national comprehensive demonstration zone aimed at further opening up the service sector, has positioned the capital city as a national hub for testing reforms. Since its launch, the city has implemented over 70 pioneering national policies, promoted more than 80 innovative practices nationwide, and expanded 120 reforms across the capital.

Beijing introduced a range of first-of-their-kind policies, including tax incentives for technology transfers and streamlined certification for high-tech enterprises. The city also piloted China's first equity transfers of venture capital investment and private equity investment, while encouraging the development of foreign R&D centers.

The city has increasingly liberalized the service sector through new initiatives such as the country's first international professional qualification recognition list, and a platform supporting Belt and Road cooperation. A landmark negative list for outbound data flows and a comprehensive policy package to ease cross-border data transfers have also made Beijing a national leader in data governance.

The city attracted US$66.18 billion in actual foreign investment over the past five years, accounting for 8.4% of the national total. More than 90% of that investment went into the service sector. Its free trade zone's share of Beijing's total foreign investment has grown from under 10% at its launch to over 20% today, said Lu Huiling, a spokesperson for the municipal commerce bureau.

Finance has been a key pillar of the "two zones" initiative, making up nearly 40% of all pilot measures. Highlights include the establishment of the Beijing Financial Court, the launch of the Beijing Stock Exchange, and continued growth of international financial institutions operating in the city.

Pan Li, deputy director of the Beijing Municipal Bureau of Local Financial Regulation and Supervision, said Beijing leads the country in the number of licensed financial institutions, industry professionals, total financial assets, and insurance density and penetration. In 2024, the city's financial sector generated 815.4 billion yuan ($113.4 billion) in added value, up 7.6% year on year, marking its best performance in five years.

According to the State Administration of Foreign Exchange's Beijing office, the city's cross-border financial activity has grown steadily, with the volume of international revenue and expenditure reaching $2.4 trillion in 2024 - up 67.4% from 2020 and accounting for 16.9% of the national total. Cross-border renminbi transactions made up 65% of Beijing's total cross-border payments in 2024, compared to 49.7 % in 2020.

Beijing Customs has also seen strong growth in trade activity. With the capital's dual airport hubs, the agency has streamlined air cargo operations and expanded market access for agricultural and food products. From 2020 to 2024, the city's foreign trade surged from 2.32 trillion to 3.61 trillion yuan. In 2024, inbound and outbound cargo volumes were up 35.1% year on year, and cross-border passenger traffic nearly doubled from the previous year.