China to launch pilot FTZ

Added On September 26, 2013

Now the latest on the free trade zone pilot scheme in east China's economic hub of Shanghai.

Sources say the zone will be officially launched this weekend and preparation work is going smoothly.

As part of China's efforts to boost reform, the free trade zone was approved by the central government in early July.

The zone was created on the basis of existing free trade businesses in Shanghai, covering about 29 square kilometers.

In the zone, goods can be imported, processed and re-exported without the intervention of customs authorities.

China's legislature has given the green light to the State Council, or the Cabinet, to modify laws related to foreign enterprises in the zone.

Administrative approvals covering foreign-funded enterprises, Chinese-foreign equity joint ventures and contractual joint ventures in the zone will be suspended starting from October 1st.

Chinese Premier Li Keqiang said earlier this month that priority will be given to easier investment opportunities.

Some experts say setting up a free trade zone offers China an opportunity to introduce fierce competition from outside to further cut costs of trade, improve efficiency, and promote financial services.