FTZ policies might be replicated in deals

The policies and measures operational in the China (Shanghai) Pilot Free Trade Zone (FTZ) could be replicated and further popularized in the country's efforts to forge free trade agreements (FTAs) with other countries and regions, a spokesman for the Ministry of Commerce (MOC) said Wednesday.

A series of systemic regulatory innovations in the Shanghai FTZ that include the negative list policy and simplified approval and registration procedures are a reflection of China's strengthened confidence in furthering the opening-up of its economy, which could be replicated in the country's free trade negotiations with other parts of the world, MOC spokesman Yao Jian told a news conference in Beijing.

China is in the process of establishing 18 free trade agreements involving 31 countries and regions, according to Yao, who revealed 12 FTAs have been signed so far.

An all-round implementation of free trade pacts is expected to further unlock growth potential of the country's trade with relevant countries and regions, he noted.

The spokesman's remarks came after a central bank official's statement on Tuesday, which was seen as an injection of confidence into the establishment of the Shanghai FTZ.

The pilot in Shanghai that is set to efficiently serve the real economy will come up with replicable financial measures in around one year, Xinhua News Agency reported late Tuesday, citing Zhang Xin, deputy head of the People's Bank of China's Shanghai Head Office.

The official statements helped spur a rally seen in stocks related to the Shanghai FTZ, with most relevant stocks jumping by the 10 percent daily limit on Wednesday.

Experts also expressed optimism for the country's FTA prospects following the inauguration of the Shanghai FTZ.

"The considerable governmental support for the Shanghai FTZ sends out an active signal for other countries and regions hoping to forge free trade deals with China, which may help expedite the negotiation process of FTAs," Huo

Jianguo, director of the Chinese Academy of International Trade and Economic Cooperation under MOC, told the Global Times on Wednesday.

The reproducibility of the Shanghai FTZ makes it possible for other parts of the country to start similar trials as well, He Weiwen, co-director of the China-US-EU Study Center under the China Association of International Trade, told the Global Times Wednesday.

But it is unnecessary to follow suit in reproducing the Shanghai FTZ all over the country, noted Huo, who advised different places should follow different ways of establishing free trade zones or special economic zones.

Currently, many provinces and cities have filed applications to establish FTZs, said Sun

Yuanjiang, deputy director of the Department of International Trade and Economic Affairs of the MOC.

The ministry only serves as a supportive government body that can offer advice on FTZ applications, while the State Council is in charge of the overall deployment, Sun said.