Since the Third Plenary Session in 2013, comprehensively deepening reform and opening-up has been a top priority of the government. Observing China’s deepening reform and opening-up has become an ideal way for the world to understand China. It is also a channel for China to understand society.

Shanghai miracle

Since this year, Shanghai, the largest economic center in China, has proved to be the best place to evaluate China’s deepening national reform. The most representative area must be the Shanghai Free Trade Zone (Shanghai FTZ).

The Shanghai FTZ was founded on September 29, 2013. By the end of March 2014, 7,700 enterprises have registered in the area, measuring 28.78 square kilometers. The amount equals the total registrations over 20 years in the Shanghai Comprehensive Trade Zone, which is the predecessor of the Shanghai FTZ. By the end of this May, newly-registered enterprises reached 9,589, increasing at a rate of 40 each day.

Favorable regulations

On September 30, 2013, the day after the foundation of the Shanghai FTZ, the government released the first “negative list” in the PRC’s history. This list categorized administrative measures and restrictions. Only enterprises not categorized on this list can apply for registration in the Shanghai FTZ.

By the end of March 2014, newly-registered foreign-invested enterprises reached 661, 93 percent of which were not on the list and applied through record filing.

In addition, the Shanghai FTZ carried out reforms including customs clearance facilitation, pilot supervision of the “single window” in international trade, issuing of the FTZ Rules of Arbitration (since May 1, 2014), and establishment of the core process of financial reform-free trade account system.

National radiation

The administration is clear that rules, regulations and reform measures in the Shanghai FTZ must abide by orders of the central government, and the experience should be reproducible and transferable.

At present, the Shanghai FTZ has made positive progress in forming a more transparent and more open investment management system, improving trade facilitation, deepening financial reform, and promoting government management reform. Apart from that, the Shanghai FTZ has reached more than 30 reproducible and transferable reform measures.