Shanghai FTZ To Support Chinese 'Belt And Road' Firms
by Lorys Charalambous, Lowtax.net, Cyprus
29 May, 2017
The Shanghai Pilot Free Trade Zone has announced it will set up a service center to help Chinese companies trade with countries participating in China's "Belt and Road" initiative.
Announced in 2013, the Belt and Road initiative is intended to support China's efforts to increase its involvement in global trade flows. It is intended to better connect 60 countries with China, either by land or sea. By 2050, the aim is that the Belt and Road region will account for 80 percent of global GDP growth, and advance three billion more people into the "middle class."
The service center will have eight functions, including rating the quality and credit of companies from countries and regions participating in the initiative. It will also provide information on ports in these countries and regions, and on their customs procedures and technical regulations.
"About 40 percent of Chinese companies have suffered technical barriers to trade when going global. Most of them are unfamiliar with the technical requirements of foreign markets," said Wang Lizhou, an official with China's customs agency, the General Administration of Quality Supervision, Inspection, and Quarantine.
The service center will help Chinese companies learn more about markets along the Belt and Road and set up a new cooperative model of connectivity, said Shanghai's free trade zone administration.
The Shanghai Pilot Free Trade Zone was created in 2013 and offers companies a number of tax preferences. It comprises a bonded area, high-tech park, financial area, and an export processing zone.
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