China Tax Alert - Issue 20, September 2013
In the context of the overall drive towards global economic integration, the recent fall in market demand from overseas trade partners and the resultant increase in trade protectionism have posed a severe challenge to China’s economic development. Furthermore, growth in domestic demand has been slow due to the reform bottleneck. As a result, a plan to establish China (Shanghai) Pilot Free Trade Zone and expand the scope of China’s opening-up has been added to the national agenda in order to alleviate the difficulties faced by relevant industries and to infuse new energy into the economy by curbing the power of bureaucrats.
The establishment of the China (Shanghai) Pilot Free Trade Zone will initiate the launch of a restructured Chinese economy, prepare the ground for a new round of nationwide reforms, and reconstruct global rules for trade and investment, all of which will herald the arrival of a new epoch in China. We suggest that companies pay close attention to the publication of relevant policies and take full advantage of the enhanced economic structure, regardless of whether they have established a presence within the free trade zone.