Insights on China (Shanghai) Pilot Free Trade Zone
How the FTZ came to be
With its economic growth rate falling and its labor costs climbing, China was no longer able to rely on exports alone to support its economic growth. Considering its economy flagged by excess production capacity and high energy consumption, the country needed a way to deepen its financial reform and transform its economic structure.
The United States was actively promoting Trans-Pacific Partnership Agreement (TPP). In 2013, the United States and the European Union began negotiations on Transatlantic Trade and Investment Partnership (TTIP), the world’s largest bilateral trade deal ever negotiated.
Supporting numerous reforms in investment, trade, finance and administrative perspectives, the FTZ covers a geographical area of 28.78 square kilometers and comprises the following four customs supervisory zones: Waigaoqiao Bonded Zone, Waigaoqiao Bonded Logistics Park, Yangshan Bonded Port and Pudong Airport Comprehensive Bonded Zone.