Hangzhou, capital of East China's Zhejiang province got an approval from the State Council to upgrade its export processing zone to a comprehensive bonded area with various functions including processing, logistics and trade.

With a planned area of 2 square kilometers, the area will be located in Xiasha district in eastern Hangzhou.

According to current policies, the customs will implement closed-off management over the area. Companies here will be able to enjoy preferential policies in customs clearance and foreign exchange.

Hangzhou Export Processing Zone, predecessor of the bonded area, is among the first export processing zones established in the Chinese mainland. Before the upgrading, the zone had gathered 25 processing and trade companies, mainly from the fields of computer, auto parts and household appliances.

The new bonded area will help these companies and cross-border e-commerce companies develop better. More job opportunities and more foreign exchange earnings will be generated.

Most important of all, the area is expected to play an active role in boosting the opening-up of Hangzhou and its neighboring regions.