A window into the future

In 2013, the China (Shanghai) Pilot Free Trade Zone (SH FTZ) has been one of the hottest topics. The cheers reached their peak when the General Plan for the China (Shanghai) Free Trade Zone (中国（上海）自由贸易试验区总体方案) was announced by the State Council on September 27 2013, followed immediately by an official launch of the SH FTZ two days later. This pilot project is widely seen as a clear signal that the Chinese government intends to further its open up to the outside world, as well as attempt to reform and test the more laissez-faire market approach. The pilot project is reported to have received strong support from China's new premier Li Keqiang, after the Chinese leadership re-shuffle in early 2013. The fact that it is implemented in Shanghai – China's most vibrant city, known for its cosmopolitan and adventurous attitude – creates hope, in particular after looking at the achievements of the pilot scheme more than 20 years ago to develop the Pudong New District of Shanghai. All these create a very positive and promising picture for the outside world.

However, what is the relevance of this pilot project to foreign companies? This is a very valid question for which a precise answer is probably not yet available, but only anticipated. This, indeed, is the case when we have a closer look at this pilot project and the related regulatory framework rolled out so far.