An overview of Shanghai Free Trade Zone: what it means to foreign investors

By Roy Chan and Kit Kwok 

Since the China (Shanghai) Free Trade Pilot Zone (Shanghai FTZ) was approved by the State Council on 22 August 2013, investors have awaited detailed policies and regulations to be issued.

In early September 2013, the Standing Committee of the National People’s Congress issued a decision authorising a filing-based system to replace the approval-based system for foreign investments registered in the Shanghai FTZ so long as they do not fall within the ‘negative list’ (NPC decision).

With the formal launch of the Shanghai FTZ on 29 September 2013, various government bodies have released a series of rules and regulations from the end of September 2013 to early October beginning to form the legal framework of the Shanghai FTZ…

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