Circular of the State Council on Printing and Distributing the Overall Plan for China (Shanghai) Pilot Free Trade Zone

Circular of the State Council on Printing and Distributing the Overall Plan for China (Shanghai) Pilot Free Trade Zone

Guo Fa [2013] No.38

September 18, 2013

The people's governments of all provinces, autonomous regions, and municipalities direct under the Central Government, all ministries and commissions of the State Council and all institutions directly under the State Council,

The State Council has approved the Overall Plan for China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the "Plan"), which is now hereby issued.
　
Article 1 Setting up China (Shanghai) Pilot Free Trade Zone is a major decision made by the Party Central Committee and the State Council, and a major initiative for thoroughly implementing the spirit of the 18th National Congress of the Communist Party of China and promoting the reform and opening under the new circumstances, which is of great significance in accelerating the transformation of government functions, active exploration of innovation in management modes, promotion of trade and investment facilitation and exploration of new methods and accumulation of new experience for overall intensified reform and expansion of opening.
　
Article 2 Shanghai Municipal People's Government shall well organize the implementation of the Plan. It is required to explore and set up pre-establishment national treatment and negative list management mode, intensify the reform of administrative approval system, accelerate the transformation of government functions, and comprehensively improve the level of intermediate and post regulation; to expand the opening in service industry and promote the opening and innovation in financial sectors; to set up a pilot free trade zone with international level of investment and trade facilitation, efficient and convenient regulation and standardized legal environment so as to make the zone a "test field" to promote reform and improve level of open economy, form replicable and extendable experience, play its role to model, drive and serve the whole country and promote co-development of all regions. Relevant departments are required to provide great supports and offer proper coordination, cooperation, guidance and assessment.
　
Article 3 According to the Decision of the Standing Committee of the National People's Congress on Authorizing the State Council to Temporarily Adjust the Administrative Examination and Approval of Relevant Laws in China (Shanghai) Pilot Free Trade Zone, some provisions of relevant administrative rules and regulations and the documents of the State Council have been temporarily and correspondingly adjusted. Details are otherwise issued by the State Council.

For any material issue occurs during the implementation of the Plan, Shanghai Municipal People's Government shall seek instructions and report to the State Council on a timely basis.

Overall Plan for China (Shanghai) Pilot Free Trade Zone

Setting up China (Shanghai) Pilot Free Trade Zone (the "Pilot Zone") is a major decision made by the Party Central Committee and the State Council and a major initiative for thoroughly implementing the spirit of the 18^th National Congress of the Communist Party of China, and promoting the reform and opening under the new circumstances. The Plan is formulated for the purpose of promoting the Pilot Zone comprehensively and effectively.
　
Article 1 General requirements
The Pilot Zone is a national strategy, which is intended to accelerate the transformation of government functions, actively explore innovations in management modes, promote trade and investment facilitation and explore new methods and accumulate new experience for the overall and intensified reform and expansion of opening in the new times.
1. Guiding ideology
We should hold high the great banner of socialism with Chinese characteristics under the guidance of Deng Xiaoping Theory, the important thought of "Three Represents" and scientific development view. We should firmly center on national strategies, further emancipate our minds, persist in pilot tasks, promote the reform and development with opening up and set up overseas investment and trade rules and systems that comply with international and legalized requirements in the first place, so as to make the Pilot Zone an important carrier for China to further integrate into economic globalization. We should create an updated version of Chinese economy and make contributions to the realization of Chinese Dream of the great revival of Chinese nation.
2. Overall objectives After two to three years of reform and tests, the Pilot Zone shall accelerate the transformation of government functions, actively promote the expanded opening of service industry and reform of foreign investment management system, vigorously develop headquarters economy and new trade formats, accelerate exploring convertibility of capital accounts and full opening of financial service industry, explore to establish classified supervision mode by state of goods and strive to form a policy supporting system to promote investment and innovation. The Pilot Zone shall focus on cultivating a internationalized and legalized business environment, strive to become a pilot free trade zone with international level of investment and trade facilitation, freedom of currency exchange, efficient and convenient regulation and standardized legalized environment, to explore new ideology and methods for the expansion of opening and intensification of reform in China for the purpose of better serving the whole country.
3. Scope of implementation
The scope of the Pilot Zone covers four special customs regulatory zones including Shanghai Waigaoqiao Bonded Zone, Shanghai Waigaoqiao Bonded Logistic Park, Yangshan Bonded Port and Shanghai Pudong Airport Free Trade Zone. The scope of implementation and pilot policies will be gradually expanded according to the progress of pilot tasks and the needs of industry development and radiation to form a linkage mechanism with international economy, finance, trade and shipping center in Shanghai.
　
Article 2 Major tasks and measures
Closely centering on the strategic requirements to face the world and serve the country and the strategic tasks to construct "four centers" of Shanghai, the Pilot Zone shall combine the expansion of opening with reform of systems, and the cultivation of functions with policy innovation in a method with pilot tasks, controllable risks, step-by-step promotion and gradual improvement to form a fundamental system framework aligning with general rules of international investment and trade.
1. Accelerate transformation of government functions (1) Intensify the reform of administrative management system. The Pilot Zone shall accelerate transformation of government functions, carry out reforms and innovations of the administration method of new government, according to requirements of internationalization and legalization, actively explore to build an administrative system that matches with international high-standard investment and trade rules and systems and promote the conversion of government administration from focus on prior approval to focus on intermediate and post regulation. The Pilot Zone shall establish an all-in-one, comprehensive approval and efficiently-operated service mode and improve information network platform to realize a coordinated management mechanism among different departments; build a comprehensive assessment mechanism for industry information tracking, regulation and collection and enhance full tracking, management and supervision over the operational activities outside the Pilot Zone by enterprises that are located in the Pilot Zone. The Pilot Zone shall built a collective and uniform market regulation and comprehensive law enforcement system to realize efficient regulation in quality and technical supervision, food and drug administration, intellectual property rights, industry and commerce and taxation, and actively encourage social forces to participate in the market supervision.
　　......