China to open sheltered services sector

27 September 2013

The new China (Shanghai) Pilot Free Trade Zone is set to open for business this weekend.

A new free trade zone in Shanghai is being created by the Chinese government in a bid to open up the Asian nation's largely sheltered services sector to greater foreign competition.

The new China (Shanghai) Pilot Free Trade Zone will open on Sunday (September 29th) and spells a change in direction of Chinese policy, as more outside investors and businesses are being encouraged to enter the marketplace.

It is not the first time free a trade zone has been set up in the capital, but it is a major development in terms of bringing together service providers that could dramatically change the way China does business.

Covering ten sq km in the east of the city, the China (Shanghai) Pilot Free Trade Zone represents more than just the opportunity for tax breaks for imports and exports, chief China economist at JPMorgan Haibin Zhu told BBC News.

The move is more about an increasing level of openness and reform within Chinese business culture.

By Tony Aynsley

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