• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 10/3/2013

China - Official launch of Shanghai “pilot” free trade zone 

October 3:  A “pilot” free trade zone in Shanghai was officially launched in late September 2013.

China’s State Council released a plan for the China (Shanghai) pilot free trade zone, and provided a blueprint for the zone’s key underlying principles—i.e., improve investment facilitations in order to meet international standards; deregulate currency exchange controls; and improve efficiency and flexibility in terms of government regulatory controls and legal environment specification within the next two to three years after these reforms.

The Shanghai pilot free trade zone was previously added to China’s national agenda earlier this year. Read TaxNewsFlash-Asia Pacific: China - Plans for “pilot” free trade zone in Shanghai

The September 2013 release implements the pilot free trade zone.

KPMG observation

The establishment of the Shanghai pilot free trade zone is viewed a significant milestone for China’s economy transformation, and may be expected as the first of many new reforms to come in the near future.

Read a September 2013 report [PDF 372 KB] prepared by the KPMG member firm in China: China (Shanghai) Pilot Free Trade Zone is officially launched

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