Shanghai recently introduced the first batch of innovation zones connected with the China (Shanghai) Pilot Free Trade Zone to extend the application of beneficiary policies beyond Shanghai FTZ's current boundaries, deepen reforms in key sectors, and boost high-level reform and opening-up efforts.
The first batch of innovation zones has received approval for establishment in six districts — Huangpu, Xuhui, Hongkou, Yangpu, Baoshan, and Minhang — and six comprehensive bonded zones outside the Shanghai FTZ. Each zone will have tailored development plans.
For example, the Minhang Innovation Zone, covering 46 square kilometers and encompassing the Hongqiao International Central Business District (Minhang Section) and the Grand Zero Bay Science and Technology Innovation Zone, will focus on new international trade and high-end intelligent manufacturing. It aims to enhance the CBD's bonded logistics center, expand public bonded warehouse functions, support shared scientific equipment, and promote cross-regional industrial cooperation in high-end equipment.
Key highlights of the first batch of innovation zones include:
1. Expanding Pilot Experience: Building on national and Shanghai FTZ reform experiences, the zones will replicate innovations in trade facilitation, cross-border fund settlement, and services for international talent. The first batch has proposed 45 measures for replication.
2. Broadening Cooperation: Encouraging integration with key industries and platforms in the Shanghai FTZ and Lin-gang Special Area, the zones will deepen cooperation in new business models, cross-border data flow, and commercialization of technology. They have proposed 24 measures for coordinated efforts.
3. Cultivating Development Momentum: Following the FTZ's reform philosophy, the zones will explore autonomous reforms in technological innovation, import trade, digital economy, green initiatives, technology finance, and legal services. They have proposed 44 pioneering measures.
