Preview

Shanghai Free Trade Zone Case Study

Good Essays
Open Document
Open Document
1810 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Shanghai Free Trade Zone Case Study
Shanghai Free Trade Zone(SFTZ) officially known as the China (Shanghai) Pilot Free-Trade Zone was officially launched on September 29,2013. With the backing of Chinese Premier Li Ke Qiang, Mainland China formed its first ever free trade zone. Personally, I feel that the establishment of the SFTZ is a stepping stone for China to boost their economy as well as creating more innovative and realistic systems to maintain its country’s competitiveness. SFTZ is a necessity for China to boost global cooperation.
The scope of the FTZ comprises of four specially supervised zones which is namely the Waigaoqiao Free Zone, Waigaoqiao Bonded Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Free Trade Zone covering an area of 28.78 square …show more content…
Based on the policies implemented as well as the exempted taxation, many industries including the shoes manufacturing industry, developed rapidly. It focuses on the institutional innovation and mission to resolve critical issues in process of opening and taking the first test.
Secondly, openness is a foundation condition for the Freeport and that it is the best choice for countries with narrow economic hinterland like Singapore due to its geographical location because it is located the heart of the Asia. The main feature of Singapore Freeport is its openness as well as its facilitation. In contrast, one of the SFTZ ‘s main mission is to focus on the reformation of china’s industrial sectors and markets and innovation worldwide to help China opens up to the global market and that it allow the local shoes manufacturing company to venture out of the domestic market more easily.
The main tasks of the SFTZ are investment liberalisation, trade facilitation, financial innovation and systematic …show more content…
The opening up policy spread slowly and then into wider regions. China then enter as the 143th country to sign the contract with the World Trade Organisation (WTO), it then affect almost all industries including manufacturing positively. China then set up Special Economic Zones (SEZs) around China to attract foreign investment and trade by implementing preferential economic policies. SEZs includes the Eastern coastal of China beginning from Guangdong province and the Fujian province. The purpose of the policies implemented by the government is to help the companies including shoes manufacturing industries to boost their business and earning more profits because they can enjoy tax privileges and treatment. The rich natural resources and vast land in China can then be fully utilised to set up more
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Reform of Deng Xiao Ping
    • 292 Words
    • 2 Pages

    Reform of Deng Xiao Ping

    -He opened Special Economic Zones to allow foreign businesses to build in China, also strengthening foreign ties and the economy.…

    • 292 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Effects of globalisation case study- china
    • 1151 Words
    • 4 Pages

    Effects of globalisation case study- china

    In 1980 Special Economic Zones were established in the southern coastal provinces of China as a result of its 'Open Door' policy, adopted towards foreign trade and investment. These zones attracted foreign investment through incentives offered such as low tax rates, exemption from import duties, cheap labour and power, and less stringent regulations. This resulted in an increase in trade from 10% of Gross National Product (GNP) in 1978 to 36% of GNP by 1996. In 1992 tariff rates were reduced from 32% to 19%, supporting China's drive for foreign investment.…

    • 1151 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Discuss the effectiveness of government strategies used to promote economic growth and development for an economy other than Australia.
    • 877 Words
    • 4 Pages

    Discuss the effectiveness of government strategies used to promote economic growth and development for an economy other than Australia.

    In 1980, China adopted an ‘open door policy’ toward foreign trade and investment. This strategy was extremely beneficial for the Chinese economy as it started by setting up the Special Economic Zones in southern coastal provinces, to attract foreign trade and investment; it offered low…

    • 877 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Federal Reserve System and Exchange Rate
    • 280 Words
    • 2 Pages

    Federal Reserve System and Exchange Rate

    A free trade zone (FTZ) is a specific class of special economic zone. They are a geographic area where goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities.…

    • 280 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Explain The Cultural Motives Of American Imperialism
    • 847 Words
    • 4 Pages

    Explain The Cultural Motives Of American Imperialism

    The policy enable trading with all of china’s markets as well as respecting Chinese territorial integrity through the hands of the then secretary of…

    • 847 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Geography Exam Study Notes: The Australian Continent
    • 2406 Words
    • 10 Pages

    Geography Exam Study Notes: The Australian Continent

    An exclusive economic zone (EEZ) is a sea zone prescribed by the United Nations Convention on the Law of the Sea over which a state has special rights over the exploration and use of marine resources, including energy production from water and wind.[1] It stretches from the seaward edge of the state's territorial sea…

    • 2406 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Relationship Between Canada And China
    • 989 Words
    • 4 Pages

    Relationship Between Canada And China

    This is trade between developing countries. More than 20% of the world’s trade is now between developing countries. China are also one of most active participants in the WTO in trying to achieve their…

    • 989 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Us and China Trade
    • 18446 Words
    • 74 Pages

    Us and China Trade

    U.S.-China economic ties have expanded substantially over the past three decades. Total U.S.China trade rose from $5 billion in 1980 to $409 billion in 2008. Although commercial ties were sharply affected by the global economic crisis in 2009 (total U.S. trade with China dropped by 10.5% to $366 billion), China remained the second-largest U.S. trading partner, its third-largest export market, and its biggest source of imports. With a large population and a rapidly expanding economy, China is a huge market for U.S. exporters and investors. However, bilateral economic relations have become strained over a number of issues, including large U.S. annual trade deficits with China (the deficit was $266 billion in 2008, but fell to $227 billion in 2009), China’s mixed record on implementing its World Trade Organization (WTO) commitments, its resistance to international calls to reform its pegged (and undervalued) currency system, its relatively poor record on enforcing intellectual property rights (IPR), and its extensive use of industrial policies and discriminatory government procurement policies (such as proposed “indigenous innovation” certification regulations) to promote domestic Chinese firms over foreign companies. Some observers contend that the business climate in China has worsened over the past few years. Further complicating the U.S.-China bilateral relationship is the growing level of economic integration and mutual commercial dependency between to two economies. U.S. economic ties with China benefit many U.S. groups, such as consumers (through low-cost imports from China) and certain business interests (such as firms who use China as a center for their supply chain operations to assemble…

    • 18446 Words
    • 74 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Chimerica
    • 570 Words
    • 3 Pages

    Chimerica

    SEZs are designated areas in countries that possess special economic regulations that are different from other areas in the same country. These regulations tend to contain measures that are conducive to foreign direct investment. Conducting business in a SEZ usually means that a company will receive tax incentives and the opportunity to pay lower tariffs.…

    • 570 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    Country Analysis --China
    • 2825 Words
    • 12 Pages

    Country Analysis --China

    The project discusses China’s geopolitical, economic, cultural environment and financial system. Chinese communist party owned the power monopoly since 1949 and controlled centrally not only in politics, but also in finance, media and economy. In late 1970s, China shifted from a command economy to a more market-oriented economy and then enjoyed accelerating economic growth. China attracted huge foreign investment and many MNCs outsourced China for cheaper costs for the last two decades. But the poor quality control and rising labor wage causes the manufacturers raise concerns over entering, staying, or leaving the country. The paper will analyze the various concerns for the entry of manufacturers in China and whether Nike Inc. should stay or leave China for its footwear manufacturing outsourcing. .…

    • 2825 Words
    • 12 Pages
    Best Essays
    Read More
  • Good Essays

    Deng Xiaoping
    • 924 Words
    • 4 Pages

    Deng Xiaoping

    In 1984, China’s food supply hit 400 million tonnes of grain, making the nation self-sufficient in food. The ‘open door policy’ opened China to the world, reversing the communist principle of an isolated economy by actively courting foreign capitalist investment. Regions such as Hainan and Shenzhen were declared Special Economic Zones, and private businesses attracted to invest using baits of low rent, low taxes and cheap labour. This not only contributed greatly to China’s rapid economic growth, but also led to better international relations with the other superpowers, as China’s economic, and therefore, political, clout grew with its prosperity. As a result of the reforms, China was soon being considered to have the potential to become the world’s largest economy in the near…

    • 924 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Sez in China
    • 9638 Words
    • 39 Pages

    Sez in China

    The category SEZ covers, including free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, urban enterprise zones and others.…

    • 9638 Words
    • 39 Pages
    Powerful Essays
    Read More
  • Good Essays

    China's Trade Disputes
    • 1042 Words
    • 3 Pages

    China's Trade Disputes

    Before China joined the GATT (General Agreement on Tariffs and Trade) in 1986, it was a planned economy. What that does mean? It means that the government was in charge of the production, investment and prices. In other words, the government was in charge of running the economy. By that time, China almost had no international commerce but only with socialist countries such as the former USSR and Yugoslavia. It was not until 1992, that China began to lower its tariffs. As a result of that, China began to grow steadily and in 2001 China joined the WTO (World Trade Organization). According to Professor David W. Conkling and Danielle Cadieux (China’s Trade Disputes, Richard Ivey School of Business, The University of Western Ontario, 2009) China had a 42.9% tariff rate in 1992; 16.6% in 2001 and since then it has been around 9.8%. These figures show how China the decreased its tariff rates since 1992 to the present. According to the WTO (World Trade Organization), the average Chinese tariff rate in 2011 was 9.6%.1 China joining the WTO2 had its own repercussions; on one hand, it was a new market with a rapidly growing population, which was attractive for many international investors. On the other hand, China’s export increased extremely fast, this rapid growth affected many industries in advanced economies. What is the reason behind this outcome? There were several issues regarding China’s commerce policies that caused a stream of trade disputes between China and other economies3.…

    • 1042 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Special Economic Zones as Growth Engines
    • 6050 Words
    • 25 Pages

    Special Economic Zones as Growth Engines

    Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.…

    • 6050 Words
    • 25 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    China Salary
    • 3969 Words
    • 16 Pages

    China Salary

    J.M. Gemini’s Guide to China market (the four main centres of Shanghai, Beijing, Shenzhen and…

    • 3969 Words
    • 16 Pages
    Powerful Essays
    Read More

Related Topics