The Research Of China Free-trade Zone Legislative Model

China(Shanghai) pilot free-trade zone was launched on August 16 th, 2013. This milestone establishment was approved by State Council of People’s Republic of China. China state council announced “Framework plan for China(Shanghai) pilot free trade-zone.” According the third part of this announcement which revealed “The decision of the Standing Committee of the National People’s congress on authorizing the State Council to Temporarily adjust the administrative examination and Approval of Relevant Laws in China(Shanghai) pilot free trade zone”, relevant laws and administrative tasks will be temporarily adjusted. In a nutshell, the state council realized that the current laws and regulations cannot work with the pilot free-trade zone. The debate now is which legislative model to be adapted for this brand new free-trade zone. Should the central government in Beijing take the lead and regulate from a National perspective? Or should Shanghai government be authorized to be the regulator and ensure the free-trade zone complied well with the city of Shanghai?There is also voice for a special Free-Trade Zone law directly established for this new area. There is pros and cons in each of the three above method. Due to the special nature of the Free-Trade Zone, it will be unrealistic for central government in Beijing to form a regulation and expect it to work well for the Free-Trade Zone located one thousand miles away. The central government does not have experience to deal with foreign investment and practice every aspects of the business. They are more likely to be an obstacle for the development of China Free-Trade Zone.However, that does not mean the local government should have the full authorization to form the legislature department.I think it is virtually impossible for Shanghai local government to be the sole legislator for Free-Trade Zone. At this stage of the development, Shanghai Municipal Government aims to expedite the functional transformation of the government,explore administrative innovation, stimulate trading and investment facilitation. Thiswill help us to accumulate more experience by deepen the phase of reform and open up more opportunity completely. As far as the legislation, it is possible to borrow from economic special zone. However, it will be criticized because the insufficient authorization. Bottom line is, we have to consider this issue from a national perspective. The legislative model is vital for the regulatory systems and full protection for Free-Trade Zone. It will also setup the statue for our nation’s legitimate future development. This is a requirement to make sure this significant measure be successful. I will explore all the options and examples to find the most suitable legislative model for Free-Trade Zone. This is the ultimate purpose for this research paper.