Negative list: delineating the boundary between the government and the market
"Negative list" is a typical institutional innovation in Shanghai's FTZ, which embodies the principle of "either forbidding or admitting" in the field of investment, i.e., in addition to the list of regulations, all other things can be done. It embodies the principle of "no prohibition, no entry" in the field of investment, that is, in addition to the provisions of the list can not be done, all other things can be done, and no longer need prior government approval.
"Negative list" is in fact to delineate the boundaries between the government and the market, and to make clear what the government needs to manage, rather than to reach out without restriction. The adoption of this new model of economic management in the pilot zone is essentially consistent with the new government's emphasis on decentralization and functional transformation, and can better play the fundamental role of the market in allocating resources.
Wang Xinkui, president of the Shanghai WTO Affairs Consulting Center, said, "The direction in the future is to be broadly in and strictly controlled, with the powers that should be devolved put in place and the things that should be managed resolutely managed well."
Inside and outside the customs: reduce costs and improve market competitiveness
Shanghai Pilot Free Trade Zone was established on the basis of the bonded area, but compared with the bonded area's "inside and outside the customs" model, the pilot zone will really move towards "inside and outside the customs".
Ding Wei, director of the Legal Affairs Committee of the Standing Committee of the Shanghai Municipal People's Congress, said there are more than 110 special customs supervisory zones in China, including bonded zones. Goods into the bonded area, you need to register in advance, and is "temporary taxation", rather than exemption. Pilot free trade zones will be in accordance with the "first line of complete liberalization, the second line of efficient control" requirements, reform of the existing goods "first declaration, after entering the zone" customs supervision mode, allowing enterprises to "first into the zone, and then declared! The customs supervision model of "declare first, enter later" has been reformed, allowing enterprises to "enter the zone first, then declare". All the goods in line with international practice are unimpeded, there is no tariff barriers and non-tariff barriers.
Feng Zhengzhou, president of the Shanghai Chamber of Commerce for Import and Export, said there are more than 87,000 foreign trade enterprises in Shanghai alone. The implementation of the "internal customs clearance" model in the pilot zone will eradicate the old problems faced by foreign trade enterprises, such as difficulties in customs clearance and foreign exchange settlement, reduce operating costs and improve market competitiveness.
Opening up the service sector: creating an equal-access market environment
Unlike the WTO, which focuses mainly on trade in goods, "expanding the opening up of the service sector and promoting trade in services" is an important task of the Pilot Free Trade Zone. The program proposes to select financial services, shipping services, trade services, professional services, cultural services and social services to expand the opening up, and create a market environment conducive to equal access for all types of investors.
Financial innovation: take the lead in the trial of interest rate marketization
Since this year, China's financial reforms have been accelerated, from the introduction of the financial "ten", the abolition of the lower limit on lending rates to the latest expansion of the pilot securitization of credit assets. In the reform of the "last kilometer" road, the pilot free trade zone will play an important role: in the pilot area, the realization of financial institutions to implement market-based pricing of asset prices; to promote the financial services industry to meet the conditions of private capital and foreign financial institutions to open up comprehensively, allowing the financial market in the pilot area to establish an international trading platform; gradually Allow foreign enterprises to participate in commodity futures trading, etc.
"Since the reform and opening up, China has realized market-oriented pricing for general commodities and services, but the prices of core factors such as capital are still subject to control. The pilot zone's early and pilot implementation in this regard is of great significance." Long Guoqiang, an expert at the Development Research Center of the State Council, said.
Capital account convertibility: boosting yuan internationalization
Convertibility of the yuan's capital account is one of the most high-profile financial reforms in the Pilot Free Trade Zone.
The Pilot Zone will explore international-oriented foreign exchange management reform pilots, establish a foreign exchange management system compatible with the Pilot Free Trade Zone, and fully realize trade and investment facilitation. Enterprises will be encouraged to make full use of the two resources and two markets at home and abroad to liberalize cross-border financing.
Liang Xinjun, chief executive of Fosun Group, has high expectations for the reform. Promoting financial liberalization is bound to encounter some unforeseen risks. He pointed out that the pilot zone's trial of renminbi capital-account convertibility will partially connect the domestic financial market with the international financial market.
Policy highlights
Financial services sector. Eligible foreign financial institutions are allowed to set up foreign banks, and eligible private capital and foreign financial institutions*** to set up Sino-foreign joint venture banks.
Shipping services. Ease the restrictions on the ratio of foreign shares in Sino-foreign equity joint ventures and Sino-foreign cooperative international ship transport enterprises, and the competent department of transportation under the State Council shall formulate the relevant administrative pilot measures.
Commercial services. Foreign-funded enterprises are allowed to engage in the production and sale of game and amusement equipment, and game and amusement equipment that have passed the content examination by the competent cultural department may be sold for the domestic market.
Professional services. Wholly foreign-owned construction enterprises in the test area are not subject to the restriction on the ratio of Chinese and foreign investment in construction projects when they undertake joint Chinese-foreign construction projects in Shanghai.
Cultural services. The restrictions on the share ratio of foreign-funded performance brokers will be lifted, and wholly foreign-funded performance brokers will be allowed to be set up to provide services for the city of Shanghai. The establishment of wholly foreign-owned entertainment venues is allowed to provide services in the pilot zone.
Social services. The establishment of wholly foreign-owned medical institutions is allowed. The establishment of Chinese-foreign cooperative educational and training institutions is permitted. Chinese-foreign cooperative vocational skills training institutions are allowed to be organized.
Four major missions
Analysts pointed out that through the establishment of the Pilot Free Trade Zone (PFTZ), it can promote reform through opening up, establish a "push" mechanism to integrate into the new rules of the new global pattern, and realize the transformation and upgrading of China's open economy. Overall, China (Shanghai) Pilot Free Trade Zone will undertake four major missions:
1, take the initiative to comply with the new trend of globalization and new pattern of economic governance. A new pattern of globalized economic governance is taking shape, and the construction of the Pilot Free Trade Zone of China (Shanghai) is to proactively respond to this new trend and pattern, open up more proactively, and create a strategic carrier for China to face the world in the new era and y cultivate the Asia-Pacific region.
2, take the initiative to dock the new rules and requirements of international trade and investment.
3, take the initiative to shape China's opening up to promote reform and development of new dividends and new advantages. According to the report, in order to adapt to the new situation of development at home and abroad, opening up for reform is imperative.
4, take the initiative to assume the new mission of the country's openness first new strategy.
Expert views
Shanghai FTZ is expected to become the second season of China's market economic reform
He Clang, former deputy director of the National People's Congress Finance and Economics Committee, said when talking about China's development, China's economy has entered the second season of improving quality and efficiency. This "season", rather than the second period, the season is seasonal changes, with the past can not be the same, the summer is over, we can no longer wear spring clothes, into the second quarter, it is necessary to ensure that how to improve the quality of how to increase the efficiency of the support, which requires reform. This support is a variety of economies, major economies, a variety of economies to have equal market competition environment. more than 30 years ago the Shenzhen Special Administrative Region opened the first quarter of China's market economy, was opened by the Shenzhen Special Administrative Region, the Shanghai Free Trade Zone is expected to really become the second quarter of China's market economic reform.
Will open a new phase of China's financial reform
HSBC Asia-Pacific Chief Executive Wang Dongsheng said the Shanghai FTZ will open a new phase of China's financial reform, bringing more flexibility and new options to the development of the world's most dynamic economy. China's maturing economy requires more sophisticated financial services to realize its full growth potential, and the establishment of the Shanghai FTZ reflects this major trend.
Become a testing ground for exchange rate marketization