• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/6/2013

China - Plans for “pilot” free trade zone in Shanghai 

September 6: A plan to establish in China a “pilot” free trade zone in Shanghai and to expand the scope of China’s economic “opening-up” has been added to the national agenda.

The plan for the “pilot” free trade zone in Shanghai can be considered 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—all which have posed challenges to China’s economic development.

The establishment of the Shanghai “pilot”free trade zone could, as some believe, initiate the launch of a restructured Chinese economy, prepare the ground for a new round of nationwide reforms, and affect global rules for trade and investment.

KPMG observation

Companies will want to pay close attention to the publication of relevant policies and consider steps to take full advantage of the enhanced economic structure, regardless of whether they have established a presence within the free trade zone.

Read a September 2013 report [PDF 234 KB] prepared by the KPMG member firm in China: State Council approves the establishment of China (Shanghai) Pilot Free Trade Zone

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