November 02, 2017

Shanghai FTZ maps out its 13th five-year development plan

The framework of Shanghai Free Trade Zone with the highest degree of openness in terms of investment, trade facilitation as well as liquidity and functional integration of financial factors will take shape by 2020, according to its newly released 13th five-year development plan.

It will also become a bridgehead in promoting trade innovation, emerging industries and bilateral investment.

The plan also calls on the FTZ to implement international management mechanism of free trade port and investment, meet the foreign companies’ needs, and promote policies and management that are replicable in other parts of the country.

Taking advantage of the preferential policies, Yangshan Port bonded area will focus on developing bulk commodities trade, fresh products cold chain logistics, international shipping service, and selling bonded goods.

Meanwhile, Pudong Airport bonded area, as an important Asia-Pacific aviation hub, will develop international passenger transport and international logistics; extend the service to high-end business and trade; and build itself into a base for airline headquarters and international aviation supporting industries.

During the 13th five-year period, FTZ will also support emerging industries and develop headquarters economy and platform economy.

So far, 62 international companies have set up headquarters in FTZ. Headquarter economy accounts for 40 percent of the zone’s total.

Six bulk commodities spot trading markets have been set up in FTZ, as well as a variety of cross-border electronic business platforms and 320 national bases for international cultural trade.

According to the plan, FTZ will make a breakthrough in introducing an international ship registration system by offering a series of preferential policies.

In addition, the zone will attract regional headquarters of international logistics companies and set up an exemplary park for cross-border electronic commerce, featuring bonded cross-border online shopping and direct mail to China services.

The industrial structure in the zone will keep upgrading. Commodities sales will keep at an annual increase of 9 percent. Revenue of emerging service industries will have an annual increase of 20 percent, and the output value of hi-tech industries will account for 60 percent of the zone’s total industrial output value.