China's first free trade zone will be located in Shanghai
Release Time:2022-02-11
Author: --
Introduction: China's first free trade zone is set to be established in Shanghai. Yesterday, reporters learned from relevant departments that Shanghai has submitted an application to the national authorities for the establishment of a free trade zone within the Shanghai Waigaoqiao Free Trade Zone, with pilot work expected to commence as early as this year.
China's first free trade zone is set to be established in Shanghai. Yesterday, reporters learned from relevant departments that Shanghai has submitted an application to the national authorities for the establishment of a free trade zone within the Shanghai Waigaoqiao Free Trade Zone, with pilot work expected to commence as early as this year.
Free Trade Zone A free trade zone is a specific area designated within a country or region to reduce international trade costs and promote the development of foreign trade and international investment. Special regulatory policies such as customs bonded warehousing and tax exemptions are implemented within these zones. Compared with existing domestic bonded areas, free trade zones offer more convenient trade conditions in terms of foreign exchange management, cargo supervision, and business establishment, and are therefore considered an 'upgraded version' of bonded zones.
Reporters understand that once the Shanghai Waigaoqiao Free Trade Zone pilots the free trade zone initiative, it will integrate offshore and onshore trade, logistics functions and settlement functions, and domestic and foreign trade in a coordinated development, becoming the greatest combination of Shanghai's International Financial Center, International Shipping Center, and International Trade Center, opening a door for Shanghai to participate in broader international competition.
After piloting the free trade zone, the Shanghai Waigaoqiao Free Trade Zone will become a ‘pool of institutional innovation’ for Shanghai, and a series of explorations aimed at further invigorating market mechanisms may gradually unfold. For example, in terms of foreign exchange management, ‘limited offshore status’ may be granted to qualified enterprises within the zone. This is a policy starting point for developing offshore trade and high-end shipping finance businesses; otherwise, many of the enterprises’ high-end service functions will find it difficult to compete with foreign counterparts.
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