Research On China(shanghai) Pilot Free Trade Zone Establishment And Its Subsequent Progress

After 30 years of rapid growth, China’s economy enters into a new normal. Corresponding adjustments must be made to adapt to new normal economy, such as, China’s foreign trade system, structure, pattern, situation etc. In order to absorb the successful experience of world’s Free Trade Zones establishment and deepen the system reform of China’s foreign trade and explore new ways and new mode of China’s foreign trade, to test the new policy, therefore, central government decided and the state council approved that China set up the China(Shanghai) Pilot Free Trade Zone in September 2013. In December 2014, the state council approved to set up three new Free Trade Zones. To research on China(Shanghai) Pilot Free Trade establishment and its subsequent progress, this article not only has important theoretical significance, but also has important practical significance.This article first analyzes basic situation of the world’s major Free Trade Zones, including Hong Kong, China, Rotterdam, the Netherlands, and Singapore etc. This article analyzes the historical background, development process and its characteristics. Depending on the function of Free Trade Zones, they can be divided into five types, free port, export processing, trade union, bonded warehousing, synthesis. The stones of those hills may be used to polish gems. This part of the article is focused on the condition of Free Trade Zone to set up and its successful operation experience.The establishment of China(Shanghai) Pilot Free Trade Zone is a new thing, and its significance is self-evident.This paper mainly studies the China(Shanghai) Pilot Free Trade Zone’s investment management system, trade regulation, financial innovation system, and supervision system. At the same time, this article studies the system of economic background and various kinds of factors. Studies have shown that in pilot area management system has three features: the universality of the world, the international advance, innovation in China.Follow-up studies of this article have two meanings: one is that three of the country’s new pilot free trade area, China(Guangdong) Pilot Free Trade Zone, China(Tianjin) Free Trade Zone, China(Fujian) Pilot Free Trade Zone. This article argues that the three new pilot free trade zones act as the following-up of China(Shanghai) Free Trade Zone, which the author calls the first echelon; The other is that this paper analyzes city of planning a FTZ. This article thinks that in addition to the three new pilot free trade zones, our country may also expand the pilot range, and will approve the pilot free trade zones, which the author calls the second echelon.But who will enter the second echelon, is not only the focus of national attention, but also the goal of the provincial competition.The first echelon has two tasks. One is to expand on the surface, and the second is for the perfection, deepening and complement of China(Shanghai) pilot free trade zone. This article analyses the characteristics of the first echelon and the target point. In addition to test different policy priorities, this paper argues that targets of three new pilot free trade zones are also different. Target of China(Guangdong) Pilot Free Trade zone is how to join in for Hong Kong and Macao trade. In addition to bear the Beijing-Tianjin-Hebei collaborative development strategy, China(Tianjin) Pilot Free Trade zone of the target is development of shipping and the related finance lease business.While China(Fujian) pilot free trade zone is aimed at how to connect to the trade of Taiwan.Now there are seven provinces(municipalities directly under the central government) in the second echelon. They are Liaoning, Hebei, Shandong, Zhejiang, Hubei, Chongqing, Guangxi. Due to Dalian(Located in Liaoning Province), Caofeidian(Located in Hebei Province), Qingdao(Located in Shandong Province), Zhoushan(Located in Zhejiang Province), Wuhan(Located in Hubei Province), Chongqing, Beibu gulf(Located in Guangxi Province) have set up a pilot zone conditions and advantages, these provinces(municipalities directly under the central government) are actively preparing for the next round of declaration. Although the second echelon includes seven provinces, the author believes that it is impossible for all of them to be classified as pilot zones. Among seven candidates, maybe three or four candidates can be successful finally. Which candidate will be classified as pilot zone depends on consideration and discussion of central government and local government, as well as the game between them. Conclusion is reached through analyzing the game between central government and local government involved in this topic from the perspective of game theory. This paper argues that the next round of pilot free trade zone is most likely to be in Qingdao, Liangjiang new area(Located in Chongqing), and the Beibu gulf(Located in Guangxi).The last part of the article is about policy suggestions and points with two levels.To the approved pilot free trade zones, the author’s advice is to correctly understand the strategic positioning of pilot free trade zone, perfect the strategic planning; To perfect management system, strengthening the construction of legal system; To refine the list of negative mode; Grasp the relationship between the reform and the risk. To the experimental areas under application, the author’s advice is to promote the establishment of complete pilot free trade zone legal system; To push formulates preferential policies; To accelerate reform of the management system.