Numerous policies released in H1 boost growth in Shanghai FTZ

During the first half of 2021, a series of favorable policies were released by China's and Shanghai's government as part of their efforts to upgrade the industrial structure, as well as bolster economic development in China (Shanghai) Pilot Free Trade Zone.

In June, the Standing Committee of the Shanghai Municipal People's Congress was authorized by the National People's Congress to create laws specific to Pudong New Area in the Shanghai FTZ, in order to promote high-level reform and opening-up of the district.

According to one of the city's goals for the 14th Five-Year Plan (2021-25) period, Shanghai aims to turn itself into an international hub for trade, investment, consumption, exhibitions, as well as supply chain management. It also strives to further explore the potential of industries like international logistics, biomedicine, high-end manufacturing, and modern services.

The Waigaoqiao Bonded Area, which is located within the FTZ, now boasts eight trading platforms that handle hundreds of millions yuan worth of goods and services, generating 2 trillion yuan ($308.63 billion) in annual sales of goods. Its foreign trade volume makes up a large portion of Shanghai's total. A number of multinational companies are headquartered in the area.

Waigaoqiao also takes a leading role in developing bonded repair services and offshore trade, which has received further policy boosts recently. At a State Council executive meeting on June 22, Premier Li Keqiang stressed that the nation will intensify its support for bonded repair services and offshore trade in China's comprehensive bonded zones and pilot free trade zones.

A complete set of policies for the biomedicine industry have also been put on Shanghai's agenda. According to an official document released in May, the city will enhance its support for research and development in sectors including drugs and high-end medical equipment. It plans to offer more financial aid, streamlined clearance procedures, and professional talents to companies involved in the industry, with the goal of generating 180 billion yuan in annual  industrial output.

Cross-border e-commerce retail businesses and environmental protection are also among the fields that the Shanghai FTZ will focus on.