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China Daily Website

Shanghai FTZ: A big step in a new reform

Updated: 2013-09-29 16:45
( cctv.com.cn)

The world's attention is focusing on Shanghai today, as the city welcomes its official launch of China's first free trade zone. It's seen as a new round of reform in six major areas including finance, trade and investment.

Opening up to new possibilities...

China's first pilot free trade zone was officially launched in Shanghai on Sunday. It is based on four existing areas subjected to special customs supervision.

And it is seen as a big step forward to further open China to the world outside.

According to details released earlier, the goals should be achieved in the pilot zone in the next two or three years, including the most anticipated reform on the service sector.

In terms of financial service, the zone will allow free yuan convertibility under the capital account, liberalization of interest rates and cross-border use of yuan, as long as the risk is controlled.

Being the home of more than 400 multinational companies at the end of 2012, Shanghai aims to draw in 35 more new regional headquarters this year. And the launching of the pilot zone is likely to attract more overseas investment.

China's modernization will not be accomplished without reform, nor will it be achieved without opening-up. The pilot zone underscores the strong determination to deepen the reform from the new leadership. It won't be an easy task, but it will surely press ahead step by step.

The Shanghai free trade zone is just the beginning of a new round of reform in China. The zone is built to help China accumulate experience and confidence. And experience learned inside will the shared nationwide. The success of the pilot zone will be crucial to invigorate the Chinese economy and unleash its growth potential.

Shanghai FTZ: A big step in a new reform

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