On Sunday, China opened its new free trade zone in Shanghai. This was hailed as the boldest reform in decades, said a Reuters report. The opening of the new free trade zone unveiled fresh details of plans to liberalize the finance regulations, investment and trade in Shanghai. The Shanghai Free Trade Zone (FTZ) had been approved by the State Council of the country last July. The Shanghai FTZ covers around 29 sq. km. on the eastern outskirts of the commercial territory.
Xinhua, a state run news agency quoted China's Commerce Minister Gao Hucheng saying that establishing FTZ was a crucial decision made in the new era of the country's opening-up to other countries worldwide. At the launch of the ceremony, Gao said, "It follows the tendency of global economic developments and reflects a more active strategy of opening-up.
The State Council of China said last Friday that it would open up its sheltered services industry to foreign competition in the free trade zone. It would also use the FTZ as a testing zone for bold financial changes. This would include a convertible currency and liberalizing interest rates.
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