SHANGHAI FREE-TRADE ZONE COMPANY (FTZ) The Shanghai free-trade zone is one of the first in mainland China.This free-trade zone including three bonded zones: Waigaoqiao port, Yangshan Deep-Water Port and Pudong International Airport, covering a total of 28 square kilometers
Customs formalities within the free-trade zone will be simple and convenient that the entry of goods will only require registration of the variety and value of the goods without any inspection and intervention, there will be no declaration process for goods coming in and out of the zone.
It was establishing a pilot zone in Shanghai to test some of the government's financial overhauls, including interest rate liberalization and full convertibility of China's currency, the renminbi.
The zone will take more than 10 years to construct. Upon completion, the free trade zone will provide world-class transport and communications facilities, as well as a tax-free environment for domestic and foreign enterprises who consider Shanghai to be a major hub of their supply chains across Asia.
The pilot program includes several steps. It will create tax-friendly facilities for trade and investment within the free trade zone, promote China's interest-rate liberalization and, eventually, Renminbi convertibility. It will also encourage financial product innovation and promote the development of offshore businesses. The program is set to play an important part in the negotiations for the Trans-Pacific Partnership Agreement (TPP) and become the first open window to help China join the TPP.
Statistics released by the Shanghai Municipal Office for Port Services showed that Shanghai's foreign trade cargo handling capacity accumulated to 306 million tons in 2012, an increase of 5.9 percent over the same period during the previous year, ranking first in the world in terms of cargo and container management capacities.
The creation of a Shanghai free trade zone is the Chinese government's latest major initiative in adapting to global economic development trends and furthering its opening up to the outside world. It is conducive to cultivating new advantages for China in the face of global competition. Moreover, it will help build a new platform for its cooperation with other countries and regions, develop new space for economic growth and build an "upgraded version" of the Chinese economy.
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