WASHINGTON — China has opened a new free trade zone in the city of Shanghai to test a new breed of economic reform, something that has bred optimism among investors.
Reuters reported that the Shanghai Free Trade Zone (or Shanghai FTZ) covers an area of about 29 square kilometers and was established by the country’s cabinet this past July.
The plan is to supposedly offer economic reform to relax regulations on finance, investment and trade. It seems to be a move toward reform and a testing ground for opening up parts of the country’s economy. Foreign and domestic banks and companies eagerly awaited this announcement and are planning to move into the zone to take advantage of this experiment.