The Value of Shanghai FTZ is inestimable

During the Summer Davos, Cao Yuanzheng was interviewed by 21 Century Business Herald on the topic of Shanghai Free Trade Zone (FTZ). Cao thought the value of Shanghai FTZ is inestimable that he said “people may not foresee it from now, but people could not image today’s Shenzhen in 1980s either.”

Cao emphasized that Shanghai FTZ was actually a China FTZ, which was China’s try to be in line with international practice that similar to China’s entrance to the WTO in 2001. According to Cao, on the meaning of reform, Shanghai FTZ is significant because the NPC has given exemptions to several laws, including Foreign Investment Law and Joint Enterprise Law, and more other laws may get exemption in the near future. He believed that that’s an important innovation of Shanghai FTZ, i.e. addressing issues more according to international practice.

Compare to planned FTZs in other places, Shanghai FTZ is featured of the more open-up on service sector especially financial service. Cao said, “Shanghai FTZ will bring in high--end service sector, and financial service industry that lead industrial structural reform in the country.”

On the issue of internationalize Chinese RMB, Cao thought the significance  of the Shanghai FTZ was whether it can find the way to solve related difficulties, promote RMB convertibility, and form the related financial market. “Only furthering open-up can promote reform, and stabilize China’s economy— even without a two-digit growth rate—at the next stage.”

(21 Century Business Herald | Reporter: Jiang Wei | 2013-9-11)