Study On The Transformation Of Qingdao Bonded Port Into Free Trade Zone

Affected by the financial crisis and the European debt crisis, China’s economy is facing structural adjustment and transformation of development pattern. China need to looking for a new way to facilitate economic growth. The establishment of Shanghai Free Trade (Test) Zone may be one solution. This zone are actively exploring ways of reform, including financial liberalization, internationalization of the RMB settlement, while enjoying various preferential policies to promote economic development in the free trade zone. To adapt to the current situation and make use of its own advantages, Qingdao Bonded port is ready to transform into a free trade zone. After the transformation, the bonded, storage, processing, and logistics function of Qingdao Bonded port would be brought into full play. In particular, the relaxation of financial regulation will greatly increase the demand of foreign markets, thus lead to trade expansion in the entire port area. This will help Qingdao Bonded Port develop "headquarters economy" and "base economic", as well as attract large foreign multinational companies to operate in the port area, thus increase the quality and quantity of regional economy. But there are many deficiencies existing in the transition process. This paper is to find out the problem existing in the transition process of Qingdao Bonded Port and put forward some relevant measures and suggestions, thus promote the successful transformation of Qingdao Bonded Port.This paper is divided into six parts. The first part is introduction. First, we introduces the background and significance of this research. Second, we explain the concept of bonded port and free trade zone and other similar concepts, especially differentiate the concept of Bonded Port and free trade zone. Third, we introduce the methodology as well as the innovation and deficiency of this research. The second part is literature review, which includes classifying and elaborating literature related to bonded port. The third part analyzes the necessity of Qingdao Bonded Port transforming into free trade zone. Part Four is the development process of free trade zone, which is divided into three stages. Part Five puts forwards the problems existing in the transformation of Qingdao Bonded Port into free trade zone. Part Six presents some solutions to the problems given in Part Five, and elaborates some strategies regarding the transformation of Qingdao Bonded Port.