Through field investigation, we find that China's FTZs are generally faced with realistic dilemmas, such as functional orientation deviation, high coordination cost of institutional innovation, difficulty in undertaking provincial economic management authority, lack of institutional innovation motivation and so on. We have the following suggestions. Firstly, China's FTZs should improve the assessment mechanism and focus on the core functions of institutional innovation. Secondly, China's FTZs should figure out the relationship between central and local authorities, as well as the management system of FTZs, so as to reduce the coordination cost of institutional innovation. Thirdly, China's FTZs should follow the practical needs and the pragmatic and effective principles, and scientifically design and delegate provincial management authority. Fourthly, China's FTZs build fault-tolerant mechanism and scientifically design the salary system, so as to stimulate the enthusiasm of institutional innovation.Since the establishment of the China (Shanghai) Pilot Free Trade Zone, China has started the construction of free trade zones in 11 provinces and cities. On the whole, China's free trade zones have made good achievements in institutional innovation based on the objective reality of our own development, which have provided valuable experience for China to connect with high-standard international economic and trade rules. However, through field research, it is found that there are still many obstacles restricting institutional innovation, and these realistic dilemmas hinder the healthy development of the free trade zones.
