China (Shanghai) Pilot Free Trade Zone
The China (Shanghai) Pilot Free Trade Zone was established at Waigaoqiao, Pudong, Shanghai, on September 29, 2013. This was a major move China took to promote reform and opening up in the new situation. It was designed to explore a new path and gain new experience for comprehensive deepening reform and opening China wider to the outside world and to promote development for all regions.
The overall objectives of the zone are, during the course of two to three years of piloting reforms, to expedite the functional transformation of government, expand the opening up of service sectors and promote the reform of the foreign investment administrative system, and develop the headquarter economy and new trade forms; explore RMB convertibility under capital account items and opening up of financial services; explore to improve Customs’ supervision efficiency; create a framework to support investment and innovation activities to cultivate an internationalized law-based business environment; and pilot a free trade zone, as measured by international standards, with convenient investment and trading procedure, full convertibility of currencies, effective and efficient goods supervision, and investor-friendly regulatory environment. As such, experience hence gained shall serve nationwide with new ideas and approaches for opening up the economy and deepening the reform further.
The major task of the zone is, by taking the lead to experiment step by step with risks under control and improving gradually, to develop a framework in line with international norms for investment and trade:
1) Accelerate the transformation of government functions;
2) Open up investment sectors;
3) Promote the transformation of trade development approach;
4) Deepen innovation and opening up of financial services; and
5) Improve regulatory supporting systems.
In addition, the zone also aims to establish an appropriate regulatory environment for supervision and tax.