The city of Zhangjiagang in Jiangsu province has seen an increase in the volume of foreign trade since the end of 2015.

This positive development for the local economy is the result of favorable tariffs brought about by the Sino-South Korea FTA (Free Trade Agreement) and the Sino-Australia FTA. Since coming into effect last December the agreements have provided a boost to local enterprises, Zhangjiagang daily reported.

Sino-South Korea FTA, which covers 22 areas including finance and e-commerce, has meant tariffs have ended or been significantly lowered for over 90 percent of products imported and exported between the two countries.

While statistics evidence the widespread benefits sown by the Sino-South Korea FTA, it is the port city of Zhangjiagang that has taken a lead and particularly reaped the rewards of this trade agreement.

In total, $202 million has been added through imported goods from South Korea. In addition, the city's enterprises have saved 20.53 million yuan ($ 3.09 million) on account of the tariff changes.

Taizhou Lejin Electronic Cold Machine Company, holder of a FTA certificate of origin, is one such company greatly aided by the tariff changes. The company has saved over 2 million yuan on account of a 1 percent decrease in the tariff charges. It has also expanded its presence in the South Korean market.

Guo Li, an industrial insider in the field, remarked that despite the worldwide economic recession free trade agreements continue to play an important role in promoting foreign trade. He added that Chinese products have expanded greatly into overseas markets in recent times on account of their low price and high quality.

Unfortunately however, many enterprises remain unfamiliar with the rules of FTA. Accordingly, Yang Jinsong, section chief at Zhangjiagang customs, has called for more attention to be placed on developing policies and helping businesses understand the inner workings of customs.