Regulations to Make Shanghai’s FTZ to be More Effective
Research has started on the regulations for the China’s first pilot free trade zone that is expected to become a more effective free trade zone in its first quarter of 2014. As of the moment the free trade zone is under a legal framework of a general administrative regulation in which the Shanghai Municipal People’s Congress has released the five documents in which the regulations are based.
Called the Administrative Measures for the Shanghai Free Trade Zone the recent regulation clarifies that the system and regulations is aimed to regulate the zone’s operations. The documents include the registration rules of an establishment for both foreign and foreign funded firms and their projects. Management rules for investment and the so called negative list for foreign investors. This free trade law will be unveiled by the Shanghai Municipal People’s Congress on the first quarter of 2014.
The goal is to make sure that the upgrade of the legal framework from administrative measures into regional level measures. The legislation process also includes the content of the incoming free trade zone regulations which is expected to be the basis of the general administrative regulations. The process will also consider any problems that might emerge after the start of the free trade zone.
The State Council has the authority to modify the laws that is related to foreign enterprises at the free trade zone. The State Council is also authorized to suspend any administrative approvals on foreign funded enterprises.