China (Shanghai) Pilot Free Trade Zone

the China (Shanghai) Pilot Free Trade Zone is a regional free trade zone set up by the Chinese Government. It is located in Pudong, Shanghai, and covers an area of 120 square km. It was officially established on September 23, 2013, as one of China’s free trade zones. According to the Plan on Comprehensive and Further Reform and Opening up in China (Shanghai) Pilot Free Trade Zone published in March 2017, the following goals will be achieved by 2020: a system that adopts international norms for investment and trade and a free trade zone that adopts the highest international standards, with liberalized investment and trade, transparent rules, effective and fair regulation, and a favorable environment for business; a robust investment management system that allows equal market access to all market entities and encourages orderly competition; a trade regulatory and service system that facilitates trade upgrading and transformation, and provides easy and convenient customs clearance; an open financial system that is capable of financial innovation and effective risk control; and a government administrative system that respects the rules of the market economy with adequate capability to manage.

The establishment of the China (Shanghai) Pilot Free Trade Zone was a major reform move that the Communist Party of China (CPC) took on the basis of its assessment of trends and developments both at home and abroad in response to China’s new realities. It is an initiative that will play an important role in helping accelerate the transformation of government functions, facilitate innovation in management; promote trade and investment, and develop new ways and gain experience for further reform and opening up on all fronts.