Theory And Practice On Transition Of China's Bonded Zone Towards Free Trade Zone

China's bonded zone is established in light of the successful experience of international free trade zone. It aims to expand the opening, join the international market and improve trade environment. It played an important role in promoting foreign trade, developing international market, using international resources and radiating regional economy in the past 20 years. Entering the 21st century, as China began to honor the commitments of WTO, the market is gradually opening up and international competition is becoming fiercely, China's bonded zone is facing increasingly serious challenges.Adjusting and upgrading existing policy and function, accelerating transition to international free trade zone becomes the inevitable trend of its future development. Attracting multinational companies to set up regional distribution center is an important content in the transition process. This paper focuses on the research of decision-making process of transferring distribution center from abroad to China's bonded zone. It fully considers the influence factors of location, integrates use of quantitative and qualitative analysis method. First, this paper analyzes the influence factors and classifies quantitative and qualitative factors into two categories. The quantitative factors include cost factor and lead time factor. Second, it makes quantitative calculation of operating cost and lead time for the two solutions and obtains the relative importance values of quantitative factors. Third, combined with the relative importance values, this paper makes a comprehensive qualitative analysis with AHP and gets comprehensive importance values of the two solutions. Finally, according to the comprehensive value of importance, we can determine the final decision of location. The whole decision-making process fully combines characteristics of quantitative and qualitative analysis method and gives a comprehensive and rational decision-making process of location. It provides a transfer decision-making program to meet the demand of such enterprises. As the actual use of the process, it takes a case shifting the Asia-Pacific distribution center from Singapore to Waigaoqiao. At the end of the paper, combined with case analysis, it puts forward suggestions to the successful transition of China's bonded zone towards free trade zone.This paper is mainly divided into four parts. The first part is the literature review, focusing on the study of transition of China's bonded zone. The second part is the transfer decision-making scheme of distribution centers. The third part is the case analysis. The fourth part is the specific function and policy recommendations of transition.