Shanghai eyes free trade zone in Pudong

Shanghai expects to set up China's first free trade zone in Waigaoqiao in Pudong New Area as the city bids to become a global trade hub by 2020, a senior city official said yesterday.

Unlike a bonded area, a free trade zone offers businesses lower taxes, a more liberal currency exchange, and better efficiency due to less supervision.

Shanghai has formally applied to run the pilot scheme for a free trade zone within its Waigaoqiao bonded area, Pudong's governor Jiang Liang told Shanghai TV Station.

"Shanghai is trying to get the permit and the central government is also hoping Shanghai to take the lead," Jiang said. "We are looking for a breakthrough by grabbing this opportunity."

Shanghai will use the zone to better coordinate cross-border trade and domestic commerce, onshore and offshore business, as well as logistics and settlement, Jiang said.

Shanghai has tried to be innovative in unveiling several types of pilot schemes.