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Clifford Chance

Clifford Chance

Briefings

Shanghai's Pilot Free Trade Zone Receives Green Light from China's Highest Authority

6 September 2013

China's State Council has given the green light in July this year to establish a free trade zone in Shanghai (Shanghai FTZ) to help reverse recent slowdown in economic development. In late August, the Standing Committee of the National People's Congress has further authorised the State Council to suspend application of certain foreign investment laws in the Shanghai FTZ.  It is envisaged that the Shanghai FTZ will attain international standard in three years, offering a unique and attractive investment environment to investors.  Compared to the rest of China, the Shanghai FTZ may feature more streamlined investment and trading procedures, efficient government supervision, standardised legal regime, and potentially a more liberalised financial system.  It is also aimed as a testing ground for future investment and financial reform nationwide.  This client briefing will list the key initiatives that reportedly will be implemented in the Shanghai FTZ, and discuss their potential impact on, and new opportunities available to foreign investors seeking to establish or expand their business in China.

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