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40 Int'l Tax J. 31 (2014)
Shanghai Pilot Free Trade Zone: Shaping of China's Future Foreign Investment Environment

handle is hein.journals/intaxjo40 and id is 188 raw text is: GLADIE LUI is an Associate Professor in the Department of Accountancy at Lingnan University in Hong Kong. Shanghai Pilot Free Trade Zone: Shaping of China's Future Foreign Investment Environment By Gladie Lui Introduction The official launch of China's pilot Free Trade Zone (FTZ) in Shanghai on September 29, 2013, marked a significant milestone for the country's economic reforms and its strategy of opening up its domestic markets for foreign investors. The FTZ is expected to liberalize trade and the provision of services and help to develop opportunitics available to offshore corpanics. The main purposes of the FTZ are to: a improve the efficiency and effectiveness of government functions; a open up the economy to new investment opportunities; a accelerate the development of trading; m widen the opening up of 18 service industries, and 0 align the existing legal framework with respective to foreign investments.' Widely perceived as a testing ground for the shaping of foreign investment landscape, the FTZ covers an area of 28 square kilometers in Shanghai and com- prises four zones specially administered by customs authorities: the Waigaoqiao Free Trade Zone, Waigaoqiao Bonded Logistic Park, Yangshan Free Trade Port Area and Pudong Airport Free Trade Zone. Tax Incentives The FTZ offers several tax incentives to promote investment and trading. The policies and measures implemented in the FTZ will be further developed over the coming years and are expected to be replicated in other parts of China. Examples are as follows. 0 China's Ministry of Finance and the State Administration of Taxation jointly issued the Circular on Corporate Income Tax Policies ConcerningAsset Restructur- ingActivities Using Non-monetary Assets for Investment Purposes by Enterprises in the FTZ (Cai Guan Shui [2013] No.91). It specifies the following: J 2014 G. LUI 31 JULY-AUGUST 2014