Page 126 - AmCham South China 2026 Special Report on the State of Business in South China

enterprise, the power generation enterprise or a Special economic zones
joint venture between both parties.
? In terms of transaction and pricing, the
plan stipulates that grid-connected green power
direct connection projects should participate
in electricity market transaction as a whole
and settle based on exchange power with the
public grid. Project loads cannot be purchased
by power grid enterprises. If the power source
and load have different investors, they will
participate in the electricity market transaction
through aggregation.
Several Measures to Support the Healthy
Development of the Low-altitude Economy
in Yunnan Province 85
In August 2025, Yunnan government issued
a new policy to support the development of low-
altitude economy and industrial agglomeration in
the next few years, highlights include:
? Encouraging the transformation and
integration of scientific and technological
achievements. For third parties introducing
technology, a reward of 2¡ë of the annual sales
revenue will be given, with a maximum reward of
RMB10 million, for a continuous period of 3 years,
except for related party transactions.
? Supporting Kunming National High Tech
Industrial Development Zone, Qujing Economic
and Technological Development Zone, Yunnan
Mile Industrial Park and other key parks that
carry low altitude manufacturing industry. Each
park will be allocated a maximum of RMB50
million per year to support the development of
aircraft manufacturing and supporting industries
such as materials, batteries, motors, internal
combustion engines, mission payloads and flight
control systems.
? Supporting the upstream and downstream
linkage of industrial chains between parks, promote
the agglomeration and innovative development of
low altitude industries.
85 Government of Yunnan, https://www.yn.gov.
cn/zwgk/zfgb/2025/2025d17q/szfbgtwj/202508/
t20250814_316526.html
126
China (Yunnan) Pilot Free Trade Zone
The China (Yunnan) Pilot Free Trade Zone
(YNFTZ) was officially launched in August 2019.
It consists of three areas: 76 km in Kunming,
2
including 0.58 km of the Kunming comprehensive
2
bonded zone, 14.12 km in Honghe and 29.74 km
2
2
in Dehong . The YNFTZ serves as a major corridor
86
connecting Belt and Road markets with the Yangtze
River Economic Belt and key hubs linking South
Asia and Southeast Asia, aiming to further open up
the border regions and enhance China¡¯s influence
these areas.
In March 2023, the government issued the Plan
for Deepening the Reform and Opening up of
the China (Yunnan) Pilot Free Trade Zone ,
87
which defines reform and development goals
and lists 16 major tasks, including establishing
a pilot zone for implementing the RCEP by the
end of 2025. The plan also emphasizes building a
market-oriented, rule-of-law and internationalized
business environment. These efforts will accelerate
the aggregation of outward-oriented industries,
promote the rapid growth of new business models
and further improve institutional systems aligned
with international economic and trade rules. 2025
marks the sixth anniversary of the establishment
of the YNFTZ. Over the past years, accumulated
imports and exports reached RMB365.66 billion,
with an average annual growth rate of 11%.
Division of functions:
? Kunming Area strengthens its joint
development with the airport economic zone,
focusing on the development of high-end
manufacturing, aviation logistics, the digital
and headquarters economies and becoming an
interconnected hub, information logistics center
and cultural education center for South Asia and
Southeast Asia.
? Honghe Area strengthens its joint
development with the Honghe Comprehensive
86 Government of Yunnan, https://swt.yn.gov.cn/cat-
egories/395
87 Government of Yunnan, https://www.yn.gov.cn/
zwgk/zfxxgkpt/fdzdgknr/zcwj/zfxxgkptzxwj/202303/
t20230322_256740.html
127