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Shanghai Free Trade Zone Case Study

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Shanghai Free Trade Zone Case Study
Shanghai Free Trade Zone(SFTZ) officially known as the China (Shanghai) Pilot Free-Trade Zone was officially launched on September 29,2013. With the backing of Chinese Premier Li Ke Qiang, Mainland China formed its first ever free trade zone. Personally, I feel that the establishment of the SFTZ is a stepping stone for China to boost their economy as well as creating more innovative and realistic systems to maintain its country’s competitiveness. SFTZ is a necessity for China to boost global cooperation.
The scope of the FTZ comprises of four specially supervised zones which is namely the Waigaoqiao Free Zone, Waigaoqiao Bonded Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Free Trade Zone covering an area of 28.78 square …show more content…
Based on the policies implemented as well as the exempted taxation, many industries including the shoes manufacturing industry, developed rapidly. It focuses on the institutional innovation and mission to resolve critical issues in process of opening and taking the first test.
Secondly, openness is a foundation condition for the Freeport and that it is the best choice for countries with narrow economic hinterland like Singapore due to its geographical location because it is located the heart of the Asia. The main feature of Singapore Freeport is its openness as well as its facilitation. In contrast, one of the SFTZ ‘s main mission is to focus on the reformation of china’s industrial sectors and markets and innovation worldwide to help China opens up to the global market and that it allow the local shoes manufacturing company to venture out of the domestic market more easily.
The main tasks of the SFTZ are investment liberalisation, trade facilitation, financial innovation and systematic …show more content…
The opening up policy spread slowly and then into wider regions. China then enter as the 143th country to sign the contract with the World Trade Organisation (WTO), it then affect almost all industries including manufacturing positively. China then set up Special Economic Zones (SEZs) around China to attract foreign investment and trade by implementing preferential economic policies. SEZs includes the Eastern coastal of China beginning from Guangdong province and the Fujian province. The purpose of the policies implemented by the government is to help the companies including shoes manufacturing industries to boost their business and earning more profits because they can enjoy tax privileges and treatment. The rich natural resources and vast land in China can then be fully utilised to set up more
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