The Shanghai Free Trade Zone, launched a month ago, destined to attract international investment, started to show progress regarding to permitting machinery imports to enter the zone duty-free.
“The new tax regulations say companies registered in the zone won’t need to pay customs duty on production equipment, and that leasing companies in the zone will only need to pay a 5 percent tax on purchasing aircraft weighing more than 25 tons, while those outside have to pay at least 7 percent.”
The plan still includes loosening the regulation of interest rates and full convertibility of nation’s currency, the renminbi (RMB), even though the rest of Mainland China remains subject to currency controls.
“Foreign companies will also be allowed to provide some internet services, though the official Xinhua news agency reported before the launch that internet restrictions would not be lifted, following a report by a Hong Kong newspaper that banned websites such as Facebook would be unblocked inside the zone.” (The Guardian)
The SHANGHAI PILOT FTZ in many respects is trying to compete with Hong Kong and Singapore, the pioneers and leaders of free-trade zones in Asia. Even though the introduction of such zone is certainly exciting, critical implementation details are yet to be issued under the General Plans of SHANGHAI PILOT FTZ.
Thecctv.com: Regulations of Shanghai Pilot Free Trade Zone bring optimism
Lexology.com: China opens experimental Free-Trade Zone in Shanghai
Theguardian.com: China opens Shanghai free-trade zone
Read more on The New York Times (Experimental Free-Trade Zone Opens in Shanghai)