Last August the PRC State Council voted to integrate the areas of Shanghai Waigaoqiao Free Trade Zone, Shanghai Waigaoqiao Bonded Logistics Zone, Yangshan Free Trade Zone, Shanghai Pudong Airport Integrated Free Trade Zone into a new experimental Free Trade Zone caled Shanghai Free Trade Zone. The purpose of such new experimental zone is to provide companies and investor with an area having more favorable legal framework and policies for investments and trade.

In fact, one of the first innovation was to  to temporarily adjust the relevant administrative examination and approval requirements of the PRC Law on Foreign-Invested Enterprises, the PRC Law on Sino-Foreign Equity Joint Ventures and the PRC Law on Sino-Foreign Cooperative Joint Ventures for foreign investments not subject to special entry administrative measures in Shanghai Free Trade Zone. Such adjustment  shall be effective within three years, starting from October 1st, 2013, and where the adjustment of any requirement is proved feasible, the relevant laws will be amended.

Only the actual implementation of such measures will show whether companies and investors will actually benefit from the creation of this new Free Trade Zone: we will of course keep monitoring the situation to report to you any autcome.

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