The pilot free trade zone (FTZ) in Shanghai is expected to expand further, and a well-functioning, open and fair FTZ should be clear about the different responsibilities of the market and the government, said
The Beijing News in an editorial.
The pilot Shanghai FTZ was established in 2013, but it only covered an area of 28.78 square kilometers. In 2014, The Standing Committee of the National People's Congress authorized the State Council to expand the free trade pilot area to 120.72 square kilometers. On November 6 Wu Qing, vice mayor of Shanghai, said Shanghai’s FTZ will be expanded one more time.
The expansion of Shanghai’s FTZ means China’s opening-up will enter a new phase, The Beijing News said.
Shanghai’s FTZ has embraced trade liberalization and set an example in foreign investment management systems, trade regulation systems and financial innovation, and this experience can be replicated in other parts of the country.
Yet, the newspaper warned, well-functioning FTZs should have clear boundaries between the government and the market. The government establishes and improves a transparent management system and provides necessary public services, which can fully stimulate the enthusiasm of entrepreneurs.