Posted on 10/10/2013 2:31:24 AM PDT by TexGrill
A new free trade zone opened in Shanghai on Tuesday offering even more perks and less red tape than existing special economic zones in China. Foreign investors can set up wholly-owned financial institutions, hospitals and theme parks, and drastic measures will be taken to open the financial, shipping, communication, service and education industries in the zone.
China intends to turn the Shanghai FTZ into a global hub of finance, service and industry.
Starting with the Shenzhen Special Economic Zone in 1979, which was designated to develop Yellow Sea coastal regions, China has taken bold steps to open its markets and attracted massive foreign investment and laid the framework to become the world's second largest economy. The Pudong region of Shanghai alone is home to more than 20,000 foreign companies, including 308 of the world's top 500.
Recently China has been concerned about slowing economic growth and potential defaults of smaller banks more or less free from government supervision and regulations. Since his inauguration, President Xi Jinping has been aggressively pursuing economic restructuring and bold regulatory reforms to strengthen China's economic fundamentals.
His government views the Shanghai FTZ as a new growth engine. By boldly shedding restrictions on foreign investment in the financial and service sectors, China seeks to transform its economic structure into that of an advanced country.
Korea needs to learn from China's ability to transform itself when faced with new obstacles. Thirsty years ago, it was China that looked to Korea as a model for its reforms and market opening. No longer.
(Excerpt) Read more at english.chosun.com ...
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