Analysis Of Foreign Investment Management In China(Shanghai) Pilot Free Trade Zone

With the restructuring of the global economic patterns, China has commenced a series of financial and economic reforms to adapt to the new circumstances. In 2013, China has established its first free trade zone- China(Shanghai) Pilot Free Trade Zone, Which is one the pilot zones with great potentials and expectations. This paper is based on the comprehensive cross examination of Special Regulating Measures for Foreign Investment Access, namely the Negative List and the General Plan, and the practice of Chinese national economic areas. This paper tries to explore the potentials of this platform by a thorough legal analysis of its specific mechanisms.Compared to the already widely existed bonded zones, China’s free trade zone is quite different in its general definitions, characters and etc. After the analysis of Shanghai Pilot Free Trade Zone’s history and process of establishment, it is realized that the reason why Shanghai Pilot Free Trade Zone is the need to upgrade bonded zones, the motivation to modify domestic economic and administrative systems as well as the pressure from the international community.For the purpose of regulating foreign investment, Shanghai government promulgated the Negative List on the date of the establishment of Shanghai Pilot Free Trade Zone. The Negative List has changed the traditional model of Positive List, and set out the prohibited and limited areas for foreign investment. For all the areas beyond the List, foreign investments enjoy pre-establishment national treatment. This paper analyzes the specific legal issues arising from the practice of Negative List and its actual influences.According to the General Plan of China(Shanghai) Pilot Free Trade Zone, the key mission of Shanghai Pilot Free Trade Zone is to explore China’s new route and pattern to open up economy to promote the reform of government function and administrative system, to change the way economy increases and optimize the economic structure. The open policy will promote development, reform, and innovation, and accumulate popularizing and replicating experience to serve the whole country. The ultimate step of Shanghai Pilot Free Trade Zone is the reform of governmental supervision and regulatory system.