【明報專訊】The Event
It is hailed as another milestone (里程碑) in China's economic development since the Shenzhen Special Economic Zone (深圳經濟特區) was set up three decades ago. It has also come as a new chapter in the long history of Shanghai's rivalry (競爭) with our city.
The China (Shanghai) Pilot Free Trade Zone (中國(上海)自由貿易試驗區), comprised of existing free trade port areas and Shanghai Pudong International Airport (浦東機場) and covering an area of 28.78 square kilometres, was launched on 29 September 2013.
It is seen as another major step China has taken in its pursuit of economic liberation (自由化). There the liberation of the capital account (資本帳) means that foreign companies registered in the zone may carry out transactions in yuan (人民幣). Another important feature of the FTZ is a free-floating exchange rate (自由浮動匯率). Though the yuan is gradually gaining its status as a global currency, its exchange rate is still tightly controlled by the central government. Analysts say the FTZ could mean an important step in the yuan's internationalisation (國際化).
In the FTZ some companies, including those that provide financial services or telecommunication services, are under fewer restrictions. Goods may freely enter and leave the area without interference from customs. It was said that there would be no Internet restrictions within the FTZ, but the central government subsequently denied that it had such a plan.
Unsurprisingly the Shanghai FTZ project has given some Hong Kong people the jitters (神經緊張). They are worried that Shanghai's new move may mean the loss of their competitive advantages. For example, though Hong Kong has been an offshore renminbi centre (人民幣離岸中心) handling interbank transfer of yuan deposits, it is believed that the Shanghai FTZ will also be given this task. Analysts even describe the Shanghai FTZ as "a Hong Kong in mainland China".
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