Shanghai Pilot Free Trade Zone: Main Obstacles and Real-Life Application

This work is devoted to the study of China’s Special Economic Zones operational features. In more detail, the process of Shanghai pilot Free Trade Zone project implementation is considered. The purpose of the work is to identify the factors that both contribute to and impede the development of the Shanghai pilot FTZ. This paper consists of 5 parts. The first part provides the definition, main features and classification of Special Economic Zones. The second part contains descriptions of the experience of Asian countries in building Special Economic Zones using the examples of Japan and Thailand. The third part presents the main reforms of open China's policy in the economic sector, which contributed to the creation of special economic zones. The fourth part presents an analysis of the main achievements of the Shanghai pilot free trade zone and the preferential regimes operating in its territory as well as. describes the results of a survey of foreign entrepreneurs in Shanghai in order to identify the positive and negative aspects of the functioning of this zone. The transition from a positive to a negative list, liberalization of the financial sector and the introduction of a single window regime have positively affected the development of the zone, as evidenced by the positive dynamics of economic growth since 2013 while survey results demonstrated that Shanghai FTZ remains less attractive for foreign entrepreneurs located in Shanghai.