SHANGHAI’S lawmakers passed a set of rules on the management of the city’s pilot free trade zone into law last week, aiming to legalize reforms that are being tested in the zone and provide a legal basis for future innovation.

The Shanghai People’s Congress, the city’s legislative body, unanimously voted to pass the new law that covers regulations on supervision, investment, trade, financial services and taxation in the China (Shanghai) Pilot Free Trade Zone.

The law, which includes nine chapters and 57 articles, will come into force on August 1.

“The enactment of the law ensures that reforms and innovation in the zone can be carried out under a legal framework. It’s a significant step toward building a law-oriented market environment in the zone,” said Dai Haibo, executive vice director of the zone’s management committee.

Reforms include the registration system for setting up a business in the zone, the negative list for foreign investment, measures to facilitate customs clearance procedures and rules to boost financial liberalization in the zone are legalized in the law.