Following the successful establishment of the Shanghai Free Traze Zone in 2013, the Chinese government is planning to maximize the benefits from this trade opening up by expanding the area's FTZ four times.
The plan was indicated in a proposal submitted by the State Council to the legislature that also included suggestions for establishing free trade zones in Tianjin, Guangdong and Fujian.
The current Shanghai FTZ, with an estimated value of $120 billion in October, includes the Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and the Pudong Airport Comprehensive Free Trade Zone.
Commerce Minister Gao Hucheng said that the expanded Shanghai FTZ will encompass the Lujiazui financial zone, Zhangjiang high-tech zone and Jinqiao development zone.
Once opened, the new zone will cover an area of 120.27 square kilometers from the previous 28.78 square kilometers.
Gao said that the move will allow the government to "test foreign investment reform, service sector opening and government administration system reform in a broader scope."
Since opening in Sept. 29, the Shanghai FTZ has had over 12,000 companies settled in, with 13.7 of them foreign-funded. These companies, especially those in the service sector, are able to do business without geographic restraints.
Shanghai's FTZ expansion as well as the planned establishment of free trade zones in three provinces result from President Xi Jinping's positive evaluation of the endevor.
In late October, the Chinese president said that the results of Shanghai's initiative can be copied to more places, like "seeds cultivated from an experimental plot."