The Chinese government will set up a demonstration FTZ in Zhejiang to encourage increased trade with the 16-member Central and East European Countries group. That comes against the backdrop of the physical infrastructure, particularly in rail, from the belt-and-road initiative as well as Chinese government moves to cut import duties more broadly. Trade between China and the CEEC group climbed 19% in the 12 months to April 30 to reach $72 billion. China’s imports are currently focused on heavy industry including $2.5 billion of passenger cars (from Slovakia and Hungary) and $1.7 billion o...