China formally approved the establishment of a free trade zone in Shanghai in September 2013 and further announced the approval of twelve more free trade zones in various cities in China in January 2014.
Shanghai is the forerunner of all the free trade zones and is a world focus on this new phase of modernization of China. The principal purpose of establishing the free trade zone of Shanghai is to open up the economy to facilitate China’s modernization. The secondary purpose is to build a city with a state of arts infrastructure hardware-wise and software-wise similar to major cities of developed countries, such as Tokyo, New York or London, to replace Hong Kong. There shall be ample of business opportunities in Shanghai in the coming years. Implementation of all the innovative plans in building the free trade zone requires a lot of talented people. Hence there shall be a lot of job openings for international professionals.
The new vision on Shanghai is that: one day in the near future, the Chinese currency RMB shall be fully convertible; the Shanghai stock exchange shall become an international stock exchange; a sophisticated broadband data super highway shall cover the whole city to facilitate fast communication and cloud computing in business activities and for inter-branch work collaboration of international companies; offshore banking shall be offered; a modern commercial litigation and arbitration mechanism shall be set up (laws that complies with modern business practice shall be enacted); the City of Shanghai shall grow as part of the urbanization strategy of China to increase internal consumption to sustain economic growth.
(Note: stock that may benefit from this development is China Telecom: CHA:NYSE)
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