Business     

Shanghai's free trade zone gets approved

China Daily, July 4, 2013

• Han said the logistics industry in Shanghai is relatively disorganized, as it is not regulated under certain management rules and sector standards, which urgently need to be improved to meet demand from multinational companies.

  Huo Jianguo, head of the Chinese Academy of International Trade and Economic Cooperation, said the free trade zone trial is a breakthrough in further promoting China's opening-up policy.

  Zhou Shijian, a senior trade expert from Tsinghua University, said the zone will promote foreign direct investment in the Yangtze River Delta region.

  He said the zone is located in the right area, as Shanghai is the nation's financial, economic and technological hub, and also home to a large number of multinationals.

  Li Yiming, chairman of Shanghai Zhengzhang Import and Export Co, said, "We're looking forward to having more direct cooperation and more convenient trading procedures with overseas business partners to design and manufacture high-end products."

  The company has its design and sales departments in Shanghai and production lines in inland provinces.

  Li said the zone will definitely help small and medium-sized enterprises struggling in the trading industry.

  Trade experts said such a project is of particular significance to China's industrial restructuring, which calls for the modernization of supply chain management with the emphasis on logistics.

  Shen Guilong, a professor of economics at Shanghai Academy of Social Sciences, said the zone will be a breakthrough for Shanghai to achieve a new round of rapid economic development.

  Shen said the zone will attract more global companies, especially from the service sector, to launch their Asia-Pacific operational offices or China headquarters in the city.

  The zone is expected to initiate a series of measures to offer more complete, convenient and transparent foreign trade services, including customs clearance and supervision policies, said Shen.

  It will include the Waigaoqiao Free Trade Zone, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone.

  Billy Mak, Hong Kong Baptist University associate professor of finance and decision sciences, said the zone might challenge Hong Kong's status as an offshore yuan financial hub.

  "If the Shanghai free trade zone creates more business in yuan trade financing, this would definitively deal a blow to Hong Kong's offshore yuan business," Mak said.

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