Transformation Of The Bonded Area And The Government's Management And Service Function

China’s Free Trade Zone is the special economic area, which is established based on the general experience of International Free Trade Zone and local conditions. China’s Free Trade Zone has played an important role in promoting economic development, expanding foreign trade, and connecting domestic market and foreign market. However, China’s Free Trade Zone exists inherent disadvantages and problems. And challenges caused by integration into economic globalization and changes of domestic as well as foreign conditions since WTO constrain its further development. The effective approach to solve these problems is to achieve the process of transition to the successful development frame of existing Free Trade Zone.This paper compared local Free Trade Zone with International Free Trade Zone, and analyzed existing development problems in China’s Free Trade Zone. Also, this paper analyzed the transition of the modes of economic development goals and management systems. The paper comes to the conclusion that Tianjin Port Free Trade Zone possesses advantages for the transition to International Free Trade Zone through comprehensive analysis of the necessity and feasibility. The positioning function is to nurture the development of international logistics, international trade, port processing, and modern services industry in a comprehensive structure. Management system should be set as three levels of government-led regulatory agencies, in order to carry smoothly out management after transition and to promote the operation of the Free Trade Zone.The paper analyzed the positioning of the Government in Free Trade Zone transition process, and put forward the corresponding policy suggestions for Government to play management and service functions in Free Trade Zone transition process. The paper illuminate that the government should provide the external condition for transition, promote the Free Trade Zone legislation and the setting of the management system, and finally solve the problem of confused as well as complex management process for Free Trade Zone. The central government should build up the unified management agency for Free Trade Zone all over the country, in order to fulfill the function of macro-management. At the same time, local government could construct the Free Trade Zone Administrative Committee to lead, mobilize, coordinate and integrate resources of all parties. Then, in order to promote the transition and development of the Free Trade Zone, local government should implement effective and efficient management and service activities.