Shanghai free trade port to focus on free flow of commodities, capital, talent

The preliminary plan for the Shanghai free trade port will focus on free flow of three key elements – commodities, capital and talent – while also aiming for breakthroughs in preferential taxation policies, the China Securities Journal reported on Tuesday.

The free trade port will implement strategies for “areas outside the customs and within the boundary” to develop offshore trade and offshore finance, and relevant central government departments will offer further guidance and improvement for the plan.

In the free flow of commodities, the free trade port aims to conduct sample checks on key goods by relevant authorities, the report said.

As for flow of capital, the plan aims for improvement in foreign exchange administration, adjustment of preferential taxation policies and enhancement of account systems in the free trade zones. The purpose is to achieve the free flow of new foreign exchange.

For the free flow of talent, the free trade port will issue Chinese green cards to foreign employees. Moreover, there will be preferential policies for nonlocal employees in terms of hukou (household registration) arrangements, the report said.

The free trade port is not merely aimed at developing trade but also at developing various industries, the report pointed out.

Retaining the enormous added value from the trade amount will also by key, so offshore trade and offshore finance will be the driving forces for the relevant policies.

“It is important to bear in mind that the finance work is supposed to serve the real economy,” Zhao Xijun, deputy dean of the School of Finance at Renmin University in Beijing, told the Global Times on Tuesday.