Few days ago, The China (Shanghai) Pilot Free Trade Zone has been formally established. Chinese government regards the establishment of the zone as a significant chance to start the next phrase of economic and political reform in China. “They outline goals to upgrade financial services, promote trade and improve governance as well as measures to encourage foreign investment in 18 sectors in the country’s tightly regulated service industry.”China’s State Council said.(From reference)

This time, Chinese government offers more and higher level preferential policies in order to attract foreign investments. It is the biggest and most influential attempt made by government since the establishment of Chinese first special economic zone Shenzhen(which is my hometown). For example, according to the official announcement, the prohibition of selling video game consoles in China will be cancelled in the zone. In is a good signal which indicates that Chinese companies will soon develop more sorts of business and join in more competitive international markets.

In my opinion, the decision shows that Chinese government is trying to change its positioning strategy.Economically, it wants to make more use of Chinese other resources besides cheap labors. Politically, Chinese government is going to make institutions more efficient.

Reference:

http://news.yahoo.com/chinas-1st-pilot-free-trade-zone-opens-071413493–finance.html

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