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National Test ---- System Design of China (Shanghai) Pilot Free Trade Zone (Revised Edition)
2016-10-8

Foreword

Establishing China (Shanghai) Pilot Free Trade Zone (SFTZ) is a major strategic decision made by the Central Government of China. SFTZ will become the base for pooling again the momentum for reform. Establishing SFTZ is to (a) proactively adapt to the new global landscape of economic governance, constructing the strategy carrier for opening up to the world and further investing in the Asia-Pacific Region; (b) implement new rules and standards of international trade and investment in advance, accumulate experience of bilateral, multilateral and regional cooperation in the new climate, and offer empirical samples and reference for negotiating with developed countries like the United States, thus providing solid support for China’s involvement in formulating new rules and regulations of international investment and trade; (c) establish a pilot-run project for the new landscape of nationwide opening-up, explore the international practice of regulation, law, administration, and operation and provide referable “regulation test pool” as well as replicable and applicable new models in deepening Reform and Opening-up; (d) proactively undertake the national strategy of opening-up, creating and accumulating evidence for higher level of opening-up and leading the entire nation to open up and upgrade.

China (Shanghai) Pilot Free Trade Zone (SFTZ) is responsible for experiments and demonstrations of system innovations in trade and business modes, investment liberalization, offshore finance, and governmental administration. SFTZ seeks to (a) implement the pre-establishment national treatment and negative list, deepen the reform of administrative supervision, set up a sound system of supervision and investment rights protection in the processing and after hand stage; (b) further liberalize the service sector, explore regulatory, supervisory, and lawful approaches to liberalize and facilitate trade and investment; (c) promote innovation in the financial system, establish the pilot-run platform for comprehensive and in-depth openness of China’s finance and economy, build an international pilot free trade zone featuring convenient investment and trade, efficient supervision and rule-based operation and explore a regulatory and supervisory model replicable and applicable to the whole country. The establishment of SFTZ calls for a series of prospective researches and innovative breakthroughs, in addition to continuous innovation in theory, system, and administration. These are the foundation and purpose of initiating this major research topic.

Based on China’s strategic demand in the era of globalization, this book takes into account the global structure of trade, investment and changes in standards, and studies the system of SFTZ. Moreover, based on the national strategy of building a free trade zone of international caliber, the book makes a comparison of SFTZ and established free trade zones, free-port cities, and proposes the international yardstick for SFTZ. Based on this, this book offers the overall framework and basic thoughts for the system of finance, investment management, trade supervision, taxation, offshore trade and finance, government system reform, as well as the “One Belt One Road” as well and “Yangtze River Delta Economic Areas” national strategies, plus the linkage mechanism of SFTZ and building Shanghai as an international center of economy, finance, trade, and shipping as well as a scientific and technological innovation center with global influential.

On September 29, 2013, SFTZ was officially established. On March 24th, 2015, the Political Bureau of the Central Committee of the CPC held a meeting in which it confirmed the great progress that the FTZ had made since it was set up almost one year ago. The Bureau also reviewed and approved the overall plan of establishing pilot free trade zones in Guangdong, Tianjin and Fujian, and the plan to further reform and open China (Shanghai) Pilot Free Trade Zone. Establishing more free trade zones around the country making the FTZ more inclusive are major strategies to comprehensively deepen reform, create more ways for opening-up and gain new experience when China’s economy is in the New Normal. Institution innovation will remain as the core of China (Shanghai) Pilot Free Trade Zone. To set up new system of open economy, explore new mode of regional cooperation and create an international, market-oriented and law-based business environment, we will pioneer in finding out potential forces for reform and handling difficulties related to reform, thus taking the lead in reform and innovation.