On November 5, 2018, President Xi Jinping delivered a keynote speech at the opening ceremony of the first China International Import Expo, announcing the establishment of a new area of China (Shanghai) pilot free trade zone.

On July 30, 2019, the 60th executive meeting of Shanghai municipal government deliberated and adopted the "Measures for the Administration of Lin Gang New Area of China (Shanghai) Pilot Free Trade Zone" (hereinafter referred to as the Measures), which clarified the management system and mechanism of Lin Gang New Area in the form of government regulations and provided legal guarantee for the smooth operation of the new zone. The Measures went into effect on August 20.

There are 11 chapters and 49 articles in the measures, including general provisions, management system, investment and business facilitation, free trade, financial openness, international transportation facilitation, personnel services, rapid information connectivity, fiscal and tax support, risk prevention and supplementary provisions.

The main contents of the measures are as follows:

 A. Provide investment and business faciliation with fair competition

1. Open up more key areas. It will relax restrictions on registered capital and investment methods in telecommunications, insurance, securities and other fields to promote industrial agglomeration.

2. Trial implementation of commercial subject registration and confirmation system. The registration materials submitted by the applicant shall be subject to formal examination, and the registration shall be confirmed immediately and the business license shall be issued after verification.

3. Improve dispute resolution methods.It will support well-known overseas arbitration and dispute resolution institutions to set up offices in the new area to conduct civil and commercial dispute arbitration.

B. Promote trade liberalization with high standards

1. Yangshan Special Comprehensive Bonded Zone shall be established in accordance with the law. On the basis of fully implementing the comprehensive bonded zone policy, it will improve trade regulation, licensing and procedural requirements, and implement higher-level trade liberalization and facilitation policies and systems.

2. Develope new types of trade. It will improve the systematic system supporting the new type of international trade and international market investment and financing services, and develop new types of trade such as medical services and art auction.

3. Promote trade in services. It will accelerate the development of trade in capital - and technology-intensive services such as cultural services, technological products, information and communications, and medical and health care.

C. Implement a cross-border financial management system that facilitates the receipt and payment of funds.

1. Open financial sector further. It will implement measures to open the financial sector to the outside world, and support qualified overseas investors in setting up various types of financial institutions in accordance with the law.

2. Provide cross-border financial services.It will support financial institutions in providing all kinds of cross-border financial services, and simplify cross-border RMB business procedures.

3. Facilitate the use of overseas funds. It will allow the funds raised overseas to be used independently for investment in the new area and overseas operations.

4. Open up capital accounts. It will explore free capital inflow, outflow and convertibility within the new zone, and gradually liberalize the convertibility of capital accounts.

 D. Open up international transport

1. Optimize international shipping services. It will innovate the ship registration system, gradually lift restrictions on legal inspection of ships, build an international shipping replenishment service system, and promote the development of shipping index derivatives.

2. Improve the efficiency of multimodal transport. Yangshan Deep-water Port, Pudong International Airport and Luchao Port Railway Container Center Station are used as carriers to share information on sea, air and railway transportation.

3. Develop international aviation business. It will support the development of air transit and consolidation services and implement a more convenient customs supervision system.

E. Provide free and convenient personnel services

1. Optimize household registration and residence permit processing. It will optimize the policy of direct residence for talents in new districts, and shorten the number of years for qualified talents from new districts to permanent residence.

2. Strengthen the introduction of skilled personnel. Focusing on the layout of key industries in Lingang new area, to formulate the catalogue of skilled talents introduction.

3. Relax qualification restrictions. Professional talents with overseas professional qualifications such as finance and construction are allowed to provide services in Lingang new zone, and overseas personnel are allowed to take relevant vocational qualification examinations in China.

4. Facilitate entry and exit. It will facilitate entry and exit, stay and residence of foreigners engaged in economic and trade activities and high-end talents in modern service industries.

5. Facilitate employment and entrepreneurship. Foreigners who meet the requirements shall be provided with convenience in handling residence permits and work permits for overseas talents.

F. Realize safe and orderly flow of data across borders.

1. Strengthen infrastructure development. It will build complete international communications facilities and secure and convenient dedicated Internet data channels.

2. Ensure the safe flow of data across borders. Focusing on key areas such as integrated circuits, artificial intelligence, biomedicine and headquarters economy, it will carry out security assessments on a trial basis and establish a data security management mechanism.

3. Enhance data protection. It will carry out trials of international cooperation rules and strengthen protection of patents, copyrights, trade secrets and other rights and data.

G. Provide internationally competitive fiscal and tax support

1. Explore tax support for international business. It will expand the scope of the VAT policy for service exports, and explore a tax policy for pilot free trade accounts.

2. Improve tax policies for industries and talents. It will give corporate income tax support to key industries that meet the requirements, and study and implement policies to support the individual income tax of overseas talents.

3. Provide financial support. Special development funds shall be set up for the development of Lingang new area and be used for the development of the new area as a whole.