Skip to comments.Shanghai trade zone misses on all points (China)
Posted on 10/16/2013 9:21:10 PM PDT by TexGrill
Economists are questioning the benefits of China's new free trade zone in Shanghai, despite rave reviews from the official press.
On September 27, the government outlined plans for the pilot free trade zone (FTZ), covering nearly 29 square kilometers (11 square miles) in the Shanghai area. Over the next three days, the official Xinhua news agency's English-language website posted no fewer than 14 stories, marking the opening of the FTZ on September 29.
Hailed as "the brainchild of Premier Li Keqiang" by state-run China Daily, the FTZ would serve as a laboratory for liberalizing the national economy, experimenting with eased trade, investment and monetary rules. Xinhua cited "global observers" as calling the
FTZ "the country's most significant reform push since the creation of the Shenzhen Special Economic Zone more than three decades ago".
Foreign commentary was more cautious and qualified.
"Whether the Shanghai zone will lead the way to broader changes depends on how much the government relaxes its controls," a New York Times editorial said, noting the government's outline included "few details".
On the surface, the government has pledged to allow free trade in currencies, fewer restrictions on investors and operations for foreign-owned banks.
(Excerpt) Read more at atimes.com ...
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