(Photo : Shanghai China)

The establishment of "Shenzhen Special Economic Zone" in 1979 indicated the beginning of the Chinese economic reform. After 30 years, the Chinese economic reform has stepped into a new important period.

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Recently, China's first free trade zone was approved by the State Council for Shanghai. This is a free trade zone carrying many responsibilities and hopes of Chinese economy.

In July, the State Council announced its principle approval of the General Plan for the Shanghai Free Trade Zone. This is a signal for Chinese government to deepen the reform.

Earlier in March 2013, during Premier Li Keqiang's inspection tour to the Waigaoqiao Bonded Zone in Shanghai, Premier Li said he suggested Shanghai to actively explore possibilities of setting up a pilot free trade zone on the basis of the comprehensive bonded zone to promote the perfection of the open economy. As for this, Wang Xinhui, who is the Shanghai WTO Affairs Consultation Center president, said: "This is a national strategy. Facing the major changes of the global economy, we need to expand our reform."

According to an announcement released by the State Council, the zone will be built on a trial basis. And it will consist of four separate bonded zones under the special administration of customs, including the Waigaoqiao Free Trade Zone and the Pudong International Airport Comprehensive Free Trade Zone.

Bai Ming, a senior researcher of a Ministry of Commerce research institute, said the authorization of Shanghai free trade zone marks China's reform has reached a new level. "China has the world's second-largest economy. The experimental zone is another great move toward allowing the global financial markets to determine to value of the RMB. After establishing the free trade zone, Chinese government can carry out new dividend policy and nurture new economic growth points." Bai Ming said.