In the news: Companies pour into FTZ, NDRC in hiring spree and approvals ease

December 13, 2013 | BY

clpstaff &clp articles

In just two months 1,400 companies have registered in the Shanghai FTZ. China's top antitrust regulator is to hire 170 employees next year and the State Council has eased administrative approvals

Shanghai FTZ attracts 1400 companies

The FT reported that more than 1400 companies have registered in the China (Shanghai) Free Trade Zone in the two months since its launch. Ai Boajun, head of the FTZ's administrative committee, dismissed any comments of a disappointing start for the Zone. His remarks came despite only two foreign banks establishing branches in the Zone on its opening day. That number has since risen to 12. Ai added that a further 6,000 companies are in the process of applying. Reforms in the Zone mean foreign companies can obtain business licences in four days, as opposed to an average of 29 outside the Zone.

Source: FT

Any rhetoric from an official in the Zone has to be positive as the government wants it to succeed. It is good news that more companies are interested in the Zone. They are realising that it will be a good move as openness and ease of doing business are positives. However, some companies might have felt pressure to register in the Zone in order to gain favour with the government. The first companies to apply may have had this in mind.

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