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China gives final nod to pilot FTZ in Shanghai
Online Edition
The State Council, China’s cabinet, has officially approved Shanghai to run a trial of free trade zone, the Ministry of Commerce said today.
The State Council has proposed to adjust some laws in the free trade zone in an effort to accelerate transition of government functions, explore management of foreign investment through drafting a negative list for foreign investors, and seek innovation in the opening-up model, the ministry said in a statement on its website.
The proposal is pending approval from the Standing Committee of the National People's Congress.
The pilot free trade zone will be organized in the Shanghai’s Pudong New Area, which has always been at the forefront of innovation and running trial programs in economic reforms.
Encompassing an area of 28 square kilometers, the pilot zone will cover Waigaoqiao Free Trade Zone, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone, where a set of preferential policies are already in place.
In a free trade zone, goods can be imported, manufactured and re-exported without the intervention of customs authorities, thus improves the convenience and efficiency of trade and facilitates the free flow of the commodities and capital.
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