Editing by Kate Yuan

An Asia-Pacific distribution center for electronic components will be established in Shenzhen’s Qianhai & Shekou Area in southern China’s Guangdong Province. This is part of the provincial government’s efforts to further promote reform and innovation in the Guangdong Pilot Free Trade Zones.

A Guangdong Provincial government document released on February 15 announced the move and related measures. The electronic components distribution is critical to the ICT material supply chain in the Guangdong-Hong Kong-Macao Greater Bay Area, according to the document. 

Designated as one of the Guangdong Pilot Free Trade Zones – specifically called “Qianhai Comprehensive Bonded Zone” in western Shenzhen has a concentration of over 80 IC companies, such as Sinotrans, Western Digital, and HiSilicon. It is intended to attract market players into the area.

The Qianhai & Shekou Area will also become a shipping transit center and an outbound air service center for imported goods, promoting innovation of import trade, according to the document.

According to data from the General Administration of Customs, the total import and export value of Qianhai Comprehensive Bonded Zone reached RMB158.107 billion($24.97 billion) in 2021, ranking ninth among the same comprehensive bonded zones nationwide.