Categories: Investing in China

Shanghai Free Trade Zone Not So Free After All

Shanghai Free Trade Zone Not So Free After All (Reuters)

The China Pilot Free Trade zone in Shanghai officially opened its doors yesterday.  And it’s already proving to be the most ironically named financial region in the world. As the Shanghai government just published a list of sectors restricted from receiving any foreign investment. While these same officials have set up bold plans for reforming the country’s currency, interest rates, trade and policies in the zone, they haven’t released any information about how the changes will be implemented.  What they have released is their “negative list,” which closely resembles the restrictions on foreign investment in the rest of the nation. Officials have said that these restrictions will be reduced over time, when the “risks are better understood.”  For investors, what’s understood right now is that the Free Trade Zone’s anything but Free.

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