is a crucial part of the renminbi's future.

In seven years, this place will become a world-class city -

an important stronghold where China meets the world.

Qianhai is a pilot zone.

It's an economic test area

where rules on tax, currency movement and investment

are relaxed.

It's another step on the path

to opening up China's economy and its currency.

China doesn't take leaps into the unknown.

The huge changes underway in the country's economy

are being carefully managed and are tested in the pilot zones

before they are adopted more widely.

They call it "crossing the river by feeling the stones".

In China, we do believe

that the stage approach is the right way

and it is the key to success.

When we say it's a pilot zone, it means that you test new things.

You learn and gain new experience, and then you can change plans

before the initiative is rolled out across the country.

For a company to be operating inside a pilot zone,

there could be opportunities

to sell different products, and have different businesses

or have your same business, but achieve higher efficiencies.

Sometimes, there are things you can do in the zone,

but not in the rest of the country.

Qianhai was set up in 2010.

Now the land reclamation has been completed,

we have attracted more than 1,800 companies.

25 businesses from the world's top 500 have registered here,

bringing a total registered capital of over 200 billion RMB.

EASTTOP is a logistics company

in the southern Chinese city of Shenzhen.

It plans to expand into nearby Qianhai to take advantage

of a more business-friendly environment in the pilot zone.

EASTTOP is a leading third-party logistics provider in China.

We provide importing and exporting for businesses and warehousing

and a domestic distribution.

On top of that, we provide

supply chain-based financing services.

What are your current business challenges?

One of the challenges is financing cost

because we have a large amount of cash flow,

from cross-border transactions.

Why has EASTTOP registered in Qianhai?

Some of the key reasons, I would think,

are easier access into international markets

and, also, preferred tax treatment,

such as lower corporate tax.

Building hasn't started yet, but Steven says

EASTTOP's Qianhai new headquarters will be ready in just a year's time.

We're already registered in Qianhai.

Now we're looking to acquire the land and start the construction.

What financial deregulations will help your business?

First of all, it will help us with lowering the costs of financing

and borrowing from the Hong Kong market.

Also, the access to global markets is easier to expand internationally.

What will the new Qianhai base mean to your staff?

Lower personal tax for certain talents

and also a better living environment

with an education system and legal system

much closer to that of Hong Kong.

EASTTOP is not alone in taking advantage

of the business opportunities in Qianhai.

Hundreds of businesses across many sectors

are registering for a place in the zone.

The businesses set up in Qianhai include finance, modern logistics,

information and technology services,

as well as cultural and creative industries.

Financial businesses make up 63% of the industry here.

How important is Qianhai to China's economic growth?

It represents the image, the standard

and the format of China's next stage of reform.

Also, it's a new pilot zone for China's economic system.

From this zone, we can explore, with other countries, new ways

to develop service industries.

By 2020, Qianhai will contribute 150 billion RMB to national GDP.

Qianhai will yet bring more growth to this part of southern China.

Hong Kong, Shenzhen and, in fact, all of the Pearl River Delta

will feel the effects of this new pilot zone.

Will Qianhai have an effect on the currency?

Yes, actually, in the past, quite a lot of RMB flowed out

from China to Hong Kong, to London and to Singapore.

Now the companies registered in Qianhai can borrow RMB from Hong Kong,

so the RMB from overseas can flow back to China

to support China's economy domestically.

And what will this mean for the internationalisation of RMB?

Qianhai is the pilot for the RMB internationalisation,

for the inflow from overseas to China,

so once the flow increases,

we can make more pilots and duplicate the cases.

Qianhai is going to be important for China in the coming years,

but it is just one of many steps on the path of change for this country.

If we talk about the reform process,

then we will see, in the immediate future,

that the interest rates will rise, financial markets will open up more

and we will perhaps see the bond market double in size.

So, the end game would be

by the time you've reached the opposite side of the river,

the financial markets will be entirely open

and the RMB will be fully convertible.

What's happening in Qianhai,

just across the water from here in Hong Kong,

could be a taste of the future.

If the pilot works, the reform could spread across the country,

taking the renminbi closer to full convertibility

with the rest of the world.