Also, the FTZ is undergoing ambitious financial reform on the premise that the latent risks are under control, in the hope of becoming a global center for capital and supply chains, as well as a base for China's overseas mergers and the backflow and transit of the Chinese currency. Steps have been taken to accelerate the internationalization of the renminbi, cross-border financing, and institutional reform in foreign exchange management, injecting fresh momentum into Shanghai's pursuit of a central role in the global financial network.

An increasing number of companies in emerging industries, such as digital finance, mobile video, smart devices, and e-commerce, are also setting up operations in the Shanghai FTZ. And there is an ongoing concentration of companies engaged in high-end manufacturing, the import and export trade, logistics, and financial services, has also empowered the FTZ to provide a host of business opportunities, products, information, capital and talent.

In fact, given the rapid integration between Internet companies and some emerging financial institutions, the FTZ is making efforts to facilitate Internet financing serving the real economy. It has issued favorable policies for the Internet industry, in order to encourage companies to provide better financial products and services. Leading e-commerce companies such as the Alibaba Group have also been invited to expand their business into the financial industry.

To acclimatize to the development of transnational e-commerce, the Shanghai FTZ has not only upgraded its fundamental system covering customs supervision, quarantine and cross-border payments, it has also launched pilot projects such as the settlement center for international trades. Hopefully, the success of the Shanghai FTZ will help the FTZ network take the lead in regional development based on the market and relevant laws.

The author is an associate researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing.

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