The State Council announced 24 reform experiences of free trade zones (FTZs) to be replicated and promoted nationwide and in specific regions on July 10, and one case of the Xi'an area of China (Shaanxi) Pilot FTZ was included.

The case of the Xi'an area of Shaanxi FTZ was the new bill financing model for high-tech enterprises. It is the only reform achievement in Shaanxi FTZ that will be promoted nationwide this year.

An aerial view of the Shaanxi FTZ. [Photo/WeChat account of Xi'an release]

With the new bill financing model, relevant high-tech enterprises can use the supply chain financial service platform for bill financing. The platform provides bill inquiry, bank-enterprise matching, and discounting services.

Financial institutions settled in the platform launch comprehensive credit services such as "loans + discounting" to minimize enterprise financing costs.

So far, the new bill financing model has covered and served over 2,000 technology-based small and medium-sized enterprises, over 1,000 invoicing enterprises, and more than 3,000 bill-holding enterprises.

It has provided credit of 940 million yuan ($131.6 million) to high-tech enterprises, bill financing of 7.8 billion yuan, and rediscounting of 6 billion yuan, effectively reducing the financing costs of enterprises.

Moving forwards, the Xi'an area of Shaanxi FTZ will continue to promote institutional innovation in areas such as high-quality industrial development, trade and investment facilitation, the transformation of government functions, and improvement of open channels and technological innovation, to form more reform achievements to be promoted nationwide.