With Shanghai Waigaoqiao Free Trade Zone as core, supplemented by the airport and Yangshan Bonded Harbor City, it becomes China 's new economic plots - Shanghai Free Trade Area, it implements government functions, financial systems, trade services, foreign investment, tax policies and many other reform measures, and it vigorously promotes the transit, offshore business development.
Firstly, the Shanghai FTA policy support :-
Under the Ministry of Culture, Four(4) conditions:- The Cultural Unit 2013 on 29 September issued a circular, it clearly dock the China ( Shanghai ) Free Trade Zone a number of working conditions:
- 1) The trial area allows the establishment of foreign-operated performance agencies , provides venues and services for operating units in Shanghai.
- 2) To allow the establishment of foreign operations in trial area for entertainment.
- 3) To allow foreign companies that engaged in gaming entertainment setting up equipment for production and sales in the trial area, through cultural authorities to examine the content of the game or the entertainment equipment that available for the domestic market.
- 4) This notice served to adjust the administrative examination and approval matters for investment in trial area, the establishment of corporate in Hong Kong SAR, Macau SAR and Taiwan investors and Chinese citizens living abroad.
China Banking Regulatory Commission ("CBRC"), Eight (8) supportive measures:- The CBRC released on 29 September 2013, the "About China (Shanghai) Free Trade Trial Area Banking Supervision Issues Related to Notice", in which, it clearly set out 8 support measures.
- 1) To support the development of Chinese banks to go into the area .
- 2) To support for the establishment of non-banking financial companies in that region.
- 3) To support the operations of foreign banks in the area.
- 4) To support for private capital flow into the banking district.
- 5) To encourage the cross-border investment and financing services.
- 6) To support the region to carry out offshore business.
- 7) To simplifying the access mode.
- 8) To improve the regulatory service system.
Five (5) supportive measures by CBRC:- The CBRC announced on 29 September 2013, its support for the promotion of China (Shanghai) Free Trade Trial Area, a number of policy measures. It includes.
- Firstly: In line with Shanghai Futures Exchange to build Shanghai International Energy Trading Center Co., Ltd., at the trade zone area, with specific commitment to promote international crude oil futures platform and its preparatory work.
- Secondly: In support with the free trade areas that meet certain conditions in accordance with provisions of the units and individuals inside and outside the two-way investment in the securities and futures markets.
- Thirdly: For business corporations in the region, they can, according to the provisions of its foreign parents, to issue RMB bonds in the domestic market. According to the market demand and explore in the region, to carry out international transactions of financial assets.
- Forth: To support the specialized securities and futures business institutions to set up subsidiaries in that district.
- Fifth: To support the local securities and futures business institutions orientated to domestic clients commodities and OTC financial derivatives.
CBRC, Eight(8) support measures:- In order to give support to the insurance function and with tthe support from China (Shanghai) pilot area of free trade, China Insurance Regulatory Commission that approved the Shanghai Insurance Regulatory Commission a certain proposed relevant matters. it includes:-
- 1. To support the establishment of foreign professional health insurance agency in free trade zone.
- 2. To support the insurance companies to establish branches in the free trade area, to carry out RMB cross-border reinsurance business that support research and exploration Shanghai catastrophe insurance mechanism.
- 3. To support the FTA overseas investment insurance agencies to carry out the pilot actively study. The FTA pilot overseas investment insurance agencies to expand the scope and scale.
- 4. To support the world's leading professional services organizations such as insurance intermediaries and reinsurance business in social organization and individuals in a free trade area in accordance with law related business.
- 5. To support Shanghai to carry out the shipping insurance, the shipping insurance operators and nurturing shipping insurance brokers to develop Shanghai shipping insurance association.
- 6. To support the innovative insurance products, insurance companies, expanding liability insurance services.
- 7. To improve the insurance market system to support Shanghai promoting shipping insurance pricing center, reinsurance and insurance funds centre with central features such as insurance or institution-building.
- 8. To support the establishment of a free trade area of financial reform and innovation, and the construction of Shanghai international financial center linkage mechanism.
Secondly, The Shanghai FTA administrative measures:-
Shanghai which expands the free trade zone services sector with liberalization measures covering six fields, it includes banking, telecom value-added services, performing brokers, educational institutions and other industries previously closed to outside of the region. It will be registered in the enterprise with open trade, foreign investment, private enterprises and is expected to usher in new business opportunities.
Specific financial services liberalization measures includes: Allowing qualified foreign financial institutions to establish foreign banks which in line with the conditions of private capital and foreign financial institutions to set up joint venture banks, the establishment of a limited pilot license banks, allowing those qualified Chinese banks in the trail area offering offshore business.
Detailed financial services:- 1. Banking services (national industry classification : J Financial Industry - 6620 Money and Banking Services) liberalization measures ( a ) to allow qualified foreign financial institutions to establish foreign banks, which in line with the conditions of private capital and foreign financial institutions jointly set up joint venture banks . When the conditions are met in a timely manner, the establishment of a limited pilot trial area license banks. ( b ) The improvement of relevant management practices, strengthen the effective supervision of the premise, allowing qualified in the trial area banks offering offshore business. 2. Professional health insurance (national industry classification:- J Financial Industry - 6812 health and accident insurance) liberalization measures that pilot with the establishment of foreign professional health insurance agency. 3. Finance lease (national industry classification: J Financial Industry - 6631 Financial Leasing Services) liberalization measures ( a ) financial leasing companies established in the trial area stand-alone, single-ship subsidiary with no minimum registered capital requirements. ( b ) to allow leasing companies concurrently with the main business-related commercial factoring business.
In the field of shipping services: Relaxation those restrictions on joint ventures, sino-foreign cooperative international shipping companies, foreign equity, by the State Council Department which is in charge of the development of relevant transport management pilot scheme ; allow Chinese companies owned or to be controlled by a non-owned five-star flag ship, pilot import and export of container in the country between the coastal ports and coastal Shanghai incidentally business; allow the establishment of a wholly foreign-owned international ship management companies.
Shipping service areas: 4. Ocean cargo transportation (national industry classification : G Transportation, storage and postal industry - 5521 Ocean freight) liberalization measures ( a ) to relax the joint ventures, sino-foreign cooperative international shipping companies with foreign ownership restrictions by the State Council Department which is in charge of the development of relevant transport management pilot scheme. ( b ) to allow Chinese companies owned or to be controlled by a non-owned five-star flag ships. 5 International Ship Management ( national industry classification : G Transportation, storage and postal services - 5539 Other water transportation service ) measures to permit the establishment of foreign-owned that is an international shipping management companies .
Business service: The protection of network and information security under the premise allowing foreign operators to form part of a specific value-added telecommunications services, such as administrative regulations involving breakthroughs required and approved by the State Council; it allow foreign companies that engage in gaming entertainment equipment production and sales, through cultural authorities to examine the content of the game entertainment equipment available for the domestic market.
Business services: 6. Value-added telecommunications (national industry classification : I information transmission , software and information technology services - 6319 Other telecommunications services, Internet Information Services 6420, 6540, data processing and storage services, call centers 6592 ) 7. Game machines, game machines sales and services (national industry classification : F wholesale and retail - 5179 wholesale of other machinery and electronic goods) liberalization measures to allow foreign companies that engage in gaming entertainment equipment production and sales, through cultural authorities examine the content of the game playground equipment available for the domestic market.
Professional services: Legal services, credit investigation, travel agencies, job intermediary services, investment management services, engineering design and construction services will further expand opening . FTA will explore foreign law firms; it allows the establishment of foreign-invested company for credit investigation, allowing registered joint venture travel agencies and joint talent agency, to allow foreign investment the establishment of joint-stock companies, in the trial area contracted with the Shanghai foreign-owned construction enterprises, or sino-foreign for joint construction projects, or to form construction projects in the proportion of foreign investment restrictions .
Professional services : 8. Lawyer Service ( national industry classification : L Leasing and Business Services - 7221 lawyers and legal services ) liberalization measures to explore closely with foreign law firms in China ( Hong Kong, Macau and Taiwan regions ) law firm business cooperation modalities and mechanisms . 9 credit investigation ( national industry classification : L Leasing and Business Services - 7295 Credit Services ) liberalization measures to permit the establishment of foreign investment and opening up credit research company . 10 travel agencies ( national industry classification : L Leasing and Business Services - 7271 travel agency services ) liberalization measures in the trial area allows the registered qualified joint venture travel agencies outside the region, in addition to the Taiwan outbound tourism business. 11 personnel intermediary services ( national industry classification : L Leasing and Business Services - 7262 professional intermediary services ) liberalization measures ( a ) to allow the establishment of sino-foreign talent agency or foreign joint ventures that could have no more than 70 % of the shares ; allow Macau service suppliers to set up wholly talent agency . ( 2 ) foreign talent agency with minimum registered capital requirements to be reduced by the $ 300,000 to $ 125,000 . 12 Investment Management ( national industry classification : L Leasing and Business Services - 7211 corporate headquarters management ) liberalization measures to permit the establishment of an open joint-stock foreign investment companies . 13 Engineering Design ( Industrial Classification : M scientific research and technology services company - 7482 Engineering Survey and Design ) liberalization measures on the tial area to provide services for the Shanghai foreign engineering design ( not including engineering survey ) enterprises, cancel the first application qualification for investors whose engineering design performance requirements . 14 Construction services ( national industry classification : E Construction - 47 Housing construction , 48 civil engineering construction, 49 construction and installation industry , 50 architectural decoration and other construction ) liberalization measures on the trial area, the wholly foreign-owned construction enterprises, Shanghai sino-foreign joint contract construction projects , from construction projects in proportion to foreign investment restrictions.
Cultural services : the foreign free trade zone will cancel the performance agencies share ratio restrictions, allows the establishment of wholly foreign-owned performing arts agencies for the provision of services in Shanghai ; allows to set up wholly foreign-owned entertainment which provides services in the trial area.
Cultural services: 15. Performance broker ( national industry classification : R Culture, Sports and Entertainment - 8941 cultural entertainment broker ) liberalization measures to cancel foreign performance agencies equity ratio limits , allow the establishment of wholly foreign-owned performing arts agencies in Shanghai to provide services. 16 Entertainment ( national industry classification : R Culture , Sports and Entertainment - 8911 dance hall entertainment ) liberalization measures to allow the establishment of wholly foreign-owned entertainment enterprise which provides services in trial area.
The Field of social services : FTA will allow foreign cooperative education organized training institutions , allowing foreign cooperative organized vocational training institutions operating , allowing the establishment of wholly foreign-owned medical institutions.
Field of social services : 17. Education and training, vocational skills training ( national industry classification : P Education - 8291 Vocational Training ) liberalization measures ( a ) to allow the training organized by sino-foreign cooperative education institution . ( 2 ) to allow foreign cooperative operating organizing vocational training institutions . 18 Medical services ( national industry classification : Q Health and Social Work - 8311 General Hospital , 8315 hospital, outpatient department [ of 8330 ] ) liberalization measures to permit the establishment of an open foreign-owned medical institutions. [ 21 ] Note : The above only applies to registered liberalization measures in China ( Shanghai ) free trade area in the experimental stage.