SHANGHAI, Dec. 7 (Xinhua)--According to media reports, Shanghai has submitted a plan for building a free trade port to relevant ministries and commissions.
Building a free trade port aims not only to enhance the trade liberalization, but also to develop industries, investment and finance, said Yin Chen, Secretary-General of China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ) Comprehensive Research Institute.
Free trade port, which is different from FTZ, mainly focuses on port trade, said Li Guanghui, Deputy Director of Chinese Academy of International Trade and Economic Cooperation, MOFCOM. “For Shanghai, trade is just one aspect. A whole set of corresponding management policies and measures in the aspects of supervision liberalization and facilitation, as well as finance, foreign exchange, investment and entry & exit administration will be gradually developed.”
Shanghai has advantages in building a free trade port. Zhao Xiaolei, Director of the FTZ Research Institute of Shanghai University of Finance and Economics, believed that Shanghai had made great achievements in the change of government functions, trade & investment facilitation and financial opening & innovation over the past four years’ construction of the FTZ, providing good policy conditions and business environment for the free trade port building. Besides, the leading roles of Shanghai port and Pudong International Airport in import & export container volume and total cargo volume, and high-quality port conditions and infrastructure of Yangshan port can support the building of a free trade port with the highest openness.
By learning from the development of world-famous free trade ports like Singapore, higher freedom degree of trade, investment and finance will be the “three main lines” to boost financial advancement. Throughout the world, free trade ports are mostly located at ports and airports as international hubs. Higher freedom degree of trade is bound to bring more investment opportunities for logistics and ports. Along with the free flow of local and foreign capital, financial industry will set to grow further, according to Li Guanghui.
An overall supervision strategy will be applied to Shanghai free trade port, with offshore trade and offshore finance as the development directions. Specific measures include: in terms of the free flow of goods, the commodities imported and exported by all the enterprises filed or registered within the free trade port will be exempted from inspection and check of customs department and inspection and quarantine department in the free trade port, except commodities of key types and key commodities that will be subject to spot checks.
As for the free flow of capital, measures of improving foreign exchange management, adjusting tax policy, improving account system in FTZ, accelerating RMB offshore business development will be adopted. Shanghai free trade port will increase the free flow of foreign exchange and reduce income tax rate of registered enterprises.
As for the free flow of talents, an objective of issuing China’s green cards is set for foreign talents employed by the port-based enterprises, while their Chinese counterparts who are not locals of Shanghai will possibly enjoy further preferential treatment for moving their household registration to Shanghai.
(Daily Business News, edited by Tong Wei)