In an exclusive interview, we explored the significant developments at the Daxing Comprehensive Free Trade Zone in Beijing, particularly within the International Biomedicine Park, where advanced automated equipment is being utilized in the production of dental implants by Kars Medical Devices.
Thanks to the logistical advantages and supportive policies of the free trade zone, Kars Medical Devices, which relies heavily on internationally sourced raw materials and production equipment, has successfully reduced production costs by approximately 30% while effectively expanding its output capacity.
The Daxing Comprehensive Free Trade Zone is known as one of the most open and feature-rich customs supervision zones in China. To date, Beijing boasts four such zones, with the Daxing and Tianzhu zones focused on enhancing logistics support for key industries, while the Zhongguancun zone prioritizes cutting-edge R&D innovation.
During a recent “High-Quality Development Research Tour,” I had the opportunity to visit both the Daxing and Zhongguancun Free Trade Zones to uncover how these areas leverage their open policies to foster the growth of specialized industries.
Kars Medical Devices officially established its presence in the International Biomedicine Park this year. According to General Manager Hanqi Su, the decision to relocate their production processes to the Daxing zone was made in just an hour after discovering the benefits of the free trade zone. “This was one of our best decisions,” he stated confidently.
Xia Zhicheng, Deputy Manager of the Industrial Planning Center at Xin Hang City Company, highlighted the strategic advantages of Daxing’s location near the international airport, as well as the favorable tax policies for businesses operating within the zone. He explained that companies can engage in diverse operations including manufacturing and cross-border e-commerce, significantly lowering time and capital costs compared to facilities located outside the zone.
Since commencing production in September, Kars Medical Devices has set an ambitious goal of reaching an annual output of one million domestic implants. Su expressed enthusiasm about the future, noting that they have developed a high-quality implant system with independent intellectual property rights. The company’s plans include advancing new product research and enhancing brand promotion to increase their market share in domestic implants.
Unlike the Daxing zone, Zhongguancun Free Trade Zone, which officially began operations this year, is the first comprehensive free trade zone in China centered around research and innovation. The initial companies to set up there are primarily focused on integrated circuits, new materials, and future energy technology.
In August, a truck carrying experimental nets for Yangu Technology successfully cleared customs, marking the first shipment to enter the Zhongguancun Free Trade Zone. Reflecting on this experience, Yangu’s Director, Lu Weijun, emphasized the rapid customs clearance, contrasting it with the half-day wait typically experienced elsewhere. In Zhongguancun, trucks could pass through without delays, greatly enhancing efficiency for businesses.
Wu Xinghong, Deputy Director of the Zhongguancun Management Committee, stated that their goal is to establish the zone as a model for technology innovation in China. The zone has removed physical barriers for customs examination, relying on smart technology to implement a non-disruptive regulatory model focused on embedded network supervision.
The quick customs clearance process, along with tax exemptions and rebates, enhances the appeal of the Zhongguancun Free Trade Zone. Song Keqing, Chairman of Beijing Vanzhi Medical Technology, pointed out that many high-tech companies require precise environmental cleanliness for their imported components. In Zhongguancun, businesses benefit from specialized services, such as ultra-clean inspection platforms, allowing them to focus on R&D and better compete in international markets.
Looking ahead, Wu stated the ambition is to transform Zhongguancun Free Trade Zone into a world-class platform for open innovation and a driving force for industrial development. Plans are in place to further improve clearance efficiency, lower operational costs for research companies, and assist businesses in expanding both domestically and internationally.
