Government mulls revised regulation for free trade zone

Government mulls revised regulation for free trade zone

The government is mulling a revision of the city's regulation of the China (Shanghai) Pilot Free Trade Zone.
Wu Zuqiang, a member of the finance and economy committee of Shanghai People's Congress, the city's legislative body, said on Thursday that the government will submit a draft of the revised regulation, and the standing committee will likely vote on it after two readings.
Wu said legislators have carried out studies on the issue over the past year and heard opinions from entrepreneurs, scholars and government institutions.
"We were advised that the revised regulation should reflect the central government's strategy to deepen the reform and opening-of the country, the results the free trade zone has achieved through innovation and reform and draw on the most competitive free trade zone regulation in the world," he said.
Over 120 members of the Pudong Association of Returned Overseas Scholars attended a consultation on revision of the regulation on Thursday at the congress and raised their hopes for future development of the free trade zone.
Huang Xiaoguang, China CEO at Australia and New Zealand Banking Group, said the free trade zone currently gives more convenience to goods trade rather than international capital flow.
"The free trade zone should facilitate overseas business merging for example, and this could be done by giving policy preference to companies with a good track record of credit," he said.
Lu Shoufu, founder of Shanghai AQ BioPhama Co, called for lower taxes on investment and reduced red tape on import-export inspection.
Shen Hui, founder of VM Motor, said in a race to attract investors, Shanghai is not in a leading position in China in terms of company tax rates and administrative service for investors, but it could make itself attractive in other ways.
"Lower personal taxes for workers in the free trade zone and more policy benefits for foreign passport holders would be great," he said.
Li Mingdong, a manager in charge of R&D at Phillips, said the government could consider allowing businesses in the free trade zone to employ people from overseas because multinational companies are faced with higher and higher labor costs in China.
Others suggested more punishments for repeated intellectual property right offenders and further convenience in application for permits.
The current regulation was passed on July 25, and since then the total area of the free trade zone has been expanded from 28.78 to 120.72 square kilometers.

History of Shanghai Free Trade ZoneFTZ-SHANGHAI

China (Shanghai) Pilot Free Trade Zone marks a major milestone in the nation's commitment to forge ahead with domestic reforms and wider opening to world markets, in line with global economic trends. The priorities of the zone are to explore new routes and systems for China's opening-up policies, to accelerate the transformation of how government functions, to promote economic restructuring and to prioritize development steps to ensure effective but stable growth.

The launch of China (Shanghai) Free Trade Zone will nurture China's new global competitiveness and establish a new platform to bolster global cooperation and lift the quality of China's economic development to a new plane.

  • November of 2009 : Shanghai Comprehensive Bonded Area was formed,started to unified manage Yang Shan Bonded Port Area which was started using since December of 2005,Wai Gao Qiao Bonded Area which was started suing since June of 1990 and Pu Dong Airport Comprehensive Bonded Area.
  • November of 2011 : Shanghai City submitted the application about set up Free Trade Zone in Shanghai Comprehensive Bonded Area to related department of the country.The 11th World Free Trade Park Conference was held in Pu Dong,Shanghai.It showed the development status of China special supervisal area,especially Shanghai Comprehensive Bonded Area.
  • January first of 2013 : Shanghai brought out "Explore to Establish Free Trade Park Accord with International Conventions" in the for the first time.
  • February 28th of 2013 : Shanghai issued ,aiming at mobilize the positivity of area development and strengthen the independency of area development through explore and execute a special system different than other areas.
  • March of 2013 : Premier of the State Council Li Keqiang investigated Wai Gao Qiao Bonded Area during his staying in Shanghai,and showed his encouragement of the Free Trade Zone construction of Shanghai in the basis os Comprehensive Bonded Area.
  • April 18th of 2013 : Office director of Shanghai Commerce Committee verified to the media that Shanghai was coordinating with the committee of the country to draft .
  • May 14th of 2013 : The project of Shanghai Free Trade Zone was brought to approval phase.
  • Late May of 2013 : Pu Dong Free Trade Zone Experimental Planning was discussed and approved by Shanghai Government,then submitted to the state government and entered to the countersigning phase.
  • July Third of 2013 : was approved at the Executive Meeting of the State Council.
  • Highway:Conveniently connected the "Yangtze River Delta" trans-provincial highway system through the highway system connection of this three areas and down town area by S2,G1501 and S20.
  • Waterway:The water "shuttle bus" container lightering system has been opened between Yang Shan Bonded Port Area and Wai Gao Qiao Port Area.The planned and under constructed inland water transportation system will connect the inland water transportation system of "Yangtze River Delta".
  • Railway:The Lu Chao Port Railway Container Center station has been constructed and put into service,and the annal transfer capacity can reach 1.8 million standardizing boxes. And it can extend to Wai Gao Qiao and Pu Dong airport.
  • Aviation:Pu Dong international airport is 20 kilometers from Wai Gao Qiao bonded area,30 kilometers from Yang Shan bonded port area,and seamless connected with Pu Dong Airport Comprehensive Bonded Area.
  • Metro:Metro line 6 connected to Wai Gao Qiao Bonded Area,line 2 directly goes to Pu Dong Airport Comprehensive Bonded Area,and line 16 go straight to Lin Gang new city (Planned to be constructed in 2013).

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