Business Cocokpedia

Shanghai Free-Trade Zone (SFTZ) is a massive trade zone located in the eastern part of China. Established in 2013, the SFTZ aims to promote international trade and investment, encourage innovation, and increase economic growth. The zone covers an area of 120.72 square kilometers, which includes the Waigaoqiao Free Trade Zone, Yangshan Free Trade Port Area, and the Pudong Airport Free Trade Zone.

The SFTZ has created an attractive business environment for both local and international investors. It has simplified customs procedures, reduced trade barriers, and lowered the cost of doing business. In addition, the SFTZ offers tax incentives and other financial benefits to encourage investment and innovation. As a result, the SFTZ has become a hub for international trade and investment, attracting many Fortune 500 companies and leading multinational corporations.

Advantages of Investing in the SFTZ

Simplified Customs Procedures

The SFTZ offers simplified customs procedures, which means that companies can import and export goods more efficiently. For instance, companies can complete customs procedures in one location instead of going to different agencies. This saves time and reduces costs.

Reduced Trade Barriers

The SFTZ has reduced trade barriers, such as tariffs and quotas, to promote international trade. This means that companies can import and export goods more easily and at a lower cost.

Tax Incentives

The SFTZ offers tax incentives to companies that invest in the zone. For example, companies can enjoy a lower corporate income tax rate of 15% instead of the standard rate of 25%. In addition, companies can enjoy a tax exemption on profits earned from overseas sales.

Open and Innovative Environment

The SFTZ offers an open and innovative environment that encourages entrepreneurship and innovation. The zone has established a number of innovation centers and technology parks to support the development of high-tech industries.

Industries in the SFTZ

The SFTZ is home to a wide range of industries, including:

Financial Services

The SFTZ is home to many financial institutions, such as banks, insurance companies, and securities firms. The zone aims to become a leading global financial center and has introduced many policies to support the development of the financial sector.

Logistics

The SFTZ is an important logistics hub, as it is located near major ports and airports. The zone aims to become a global logistics center and has introduced many policies to support the development of the logistics industry.

High-tech Industries

The SFTZ is home to many high-tech industries, such as biotechnology, information technology, and new energy. The zone aims to become a leading global innovation center and has established many innovation centers and technology parks to support the development of high-tech industries.

The Shanghai Free-Trade Zone (SFTZ) is a massive trade zone that aims to promote international trade and investment, encourage innovation, and increase economic growth. The zone offers many advantages to companies that invest in the zone, such as simplified customs procedures, reduced trade barriers, tax incentives, and an open and innovative environment. The SFTZ is home to many industries, such as financial services, logistics, and high-tech industries. With its attractive business environment and supportive policies, the SFTZ has become a hub for international trade and investment, attracting many leading multinational corporations.

In addition, the SFTZ has also implemented a number of policies to attract and support small and medium-sized enterprises (SMEs) in various industries, including e-commerce, manufacturing, and research and development. The zone offers SMEs simplified business registration procedures, access to financing, and support for innovation and intellectual property protection.

The SFTZ has also established partnerships with other free trade zones around the world to enhance international cooperation and promote global trade. The zone has signed free trade agreements with many countries and regions, including Australia, South Korea, and ASEAN member states. These agreements have helped to reduce trade barriers and promote economic cooperation between the SFTZ and its partners.

As one of the most important free trade zones in China, the SFTZ has contributed significantly to China's economic growth and global trade. In 2020, the total trade volume of the SFTZ reached 3.64 trillion yuan (approximately USD 561 billion), accounting for about 25% of Shanghai's total trade volume. The zone has attracted over 60,000 companies from over 160 countries and regions, including many Fortune 500 companies and leading multinational corporations.

In conclusion, the Shanghai Free-Trade Zone (SFTZ) is a vital trade zone that offers many advantages and opportunities to local and international companies. With its supportive policies, attractive business environment, and partnerships with other free trade zones, the SFTZ has become a hub for global trade and investment, promoting economic growth and development both in China and around the world.