China Expands Shanghai FTZ to Attract More Hi-Tech Firms

China’s State Council has agreed to expand the Shanghai Free Trade Zone, or FTZ, by transforming the Lingang New Area into a special economic functional zone with international market influence and competitiveness by 2025. According to the plan, the new area, which will be developed on the southeastern tip of Shanghai to the south of the Dazhi River and Pudong International Airport, will promote more activity in trade, investment, finance, talent development, and information exchange.

Expansion of the Shanghai FTZ was first proposed in November 2018 by Chinese President Xi Jinping who said at the time that he considered it an “important strategic measure” to help promote the country’s reform and opening-up policies. To achieve the goal, Shanghai is setting up a special development fund to inject at least Rmb100 billion, or $14.2 billion, to construct the zone over the next five years.