Shanghai trade zone.jpg (Photo : Reuters)
Chinese President Xi Jinping said that China will establish more free trade zones in other areas, following the successful founding of the Shanghai Free-Trade Zone in 2013.
In a Leading Group for Overall Reform meeting, Xi said that Shanghai's initiative can be copied to more places "as soon as possible," comparing it to "seeds cultivated from an experimental plot."
The Shanghai Free-Trade Zone was approved on Aug. 22, 2013, by the State Council. Officially opened on Sept. 29, the zone covers 29 square kilometers in Pudong district where businesses can trade freely with less oversight from the government. The current zone will be expanded gradually to cover the entire 1,210 square kilometers of Pudong.
The SFTZ started as a training ground for products banned in mainland China. For instance, video game consoles were allowed to be sold in the zone. Products that would require clearance from customs were exempted from such requirement as well.
As of June 2014, there are 12,000 businesses in the SFTZ, with over 600 registered as foreign-invested businesses.
A year after its inauguration, the SFTZ's trade value rose to 747.5 billion yuan ($122 billion). The said value was 6.5 percent higher than last year's, and accounted for 26.4 percent of Shanghai's total trade value.
Acknowledging the progress made by Shanghai, the trade practices will be implemented in other places to transform government functions, improve business environment and facilitate trade and investment.
