It is reported by ChinaDaily that the Shanghai pilot free trade zone (FTZ) started operating Sunday, launching a test bed for the Chinese leadership’s drive of deepening market-oriented reforms and boosting economic vitality.

“[FTZ] follows the tendency of global economic developments and reflects a more active strategy of opening-up,” Commerce Minister Gao Hucheng said at the ceremony of the zone’s launch.

Building the FTZ is considered as the boldest reform in decades in China.  As a result of the global economic crisis since 2008, China’s foreign trade has fallen sharply, which automatically leads to a great negative impact on its domestic economy. In the case that international economy is still unstable, China has to take an action to create a good environment for developing its economy. However, Shanghai FTZ, as the pioneer on the mainland, liberalizes regulations governing finance, investment and trade.

“Priority will be given to easier investment access and greater openness in trade in services. We have also adopted measures to facilitate foreign trade and promote a steady growth in import and export,” said premier Li Keqiang, the top proponent of FTZ.

Therefore, FTZ in Shanghai plays an important rule in stabilizing economic development and being a test bed for pushing forward reforms and opening the economy wider.

http://www.chinadaily.com.cn/business/2013-09/29/content_17002390.htm

http://www.reuters.com/article/2013/09/29/us-china-ftz-idUSBRE98S02K20130929