Four years after the development of the Shanghai Free Trade Zone, the construction program of Shanghai Free Trade Port is being brewed in full swing.
According to the China Securities Journal, the preliminary plan for Shanghai’s free trade area is expected to make breakthroughs in the free flow of the three major elements of goods, funds and personnel. It is expected to achieve breakthroughs in foreign exchange administration, tax incentives, the acquisition of China’s green card by foreigners and the settlement of foreign workers. In addition, Freeport will strive to achieve the overall regulatory strategy of “domestic clearance” in order to develop offshore trade and offshore finance. Programs are currently seeking guidance from various departments to improve.
In the free flow of goods, strive for first-line unconditional access, registration for the record, the region free exemption, import and export of goods in the free port does not require Customs and other departments to review, the relevant departments only sampling of key goods.
The free flow of funds, the main contents include improving foreign exchange management, adjusting tax incentives, improve the free trade area account system, speed up the development of RMB offshore business. With concrete details, Freeport will strive for the free flow of “incremental” foreign exchange. In addition, Freeport will strive to substantially reduce the income tax rate of registered enterprises in the port.
For the free flow of talents, foreign talents employed by enterprises in Hong Kong will target the issuance of green cards in China, and there may be further preferential measures for setting up of foreign talents working in Hong Kong enterprises in Shanghai.
As for the overall design of the program, the concept of “customs clearance inside and outside the territory” has become the top priority. Correspondingly, “letting go of the first line, safe and efficient control of the second line, and freedom in the area” are the two major areas. “Let it go” is to change from the conventional regulation to the simplified supervision. The “second-tier efficient control” is based on the platform function of “single window”, and the relevant regulatory authorities including customs, inspection and quarantine, foreign exchange and payment related to trade regulation are connected to the “single window” operating platform to achieve an intensive and one-stop Efficient management.
Bai Ming, deputy director of the Institute of International Trade and Economic Cooperation under the Ministry of Commerce of the International Institute of Market Research, believes that the difference between a free port and a free trade area is mainly reflected in allowing offshore trade and further opening up the high-end service industry based on offshore trade. Offshore finance and other related business.
Chen Bo, a professor at Huazhong University of Science and Technology and executive director of the Free Trade Zone Research Center, believes that China has become one of the largest potential markets in the world. If offshore trade is allowed, a large amount of international goods and even entire East Asian international commodities will be put into Shanghai. According to international experience, with the development of offshore trade, there will be opportunities in areas such as transportation and storage of bulk raw materials, distribution centers and offshore finance.