Contact: LehmanBrown International Accountants (Shanghai & Beijing, China)
Subsequent to the plan to establish the Shanghai Free Trade Zone (the Shanghai FTZ) announced by the China State Council in July 2013, China officially launched the pilot FTZ on 29th September 2013, taking a solid step forward to boost reforms in the world's second-largest economy.
The FTZ covers an area of 28.78km2 and integrates four existing bonded zones in the district of Pudong, namely the Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone.
As stated by Chinese officials, the Shanghai FTZ is being used as a testing ground for a number of economic reforms, in particular, the reform on finance, the investment mechanism as well as the transformation of trading modes. The major breakthroughs of the Shanghai FTZ brought by the overall plan are as follows:
- Accelerate the transformation of government functions
- Open up new investment opportunities
- Enhance transformation of trading mode
- Open up the financial services sector through innovation
- Improve the current legal framework
