The sitting of the new area of the free trade zone has get a lot of concern and finally landed in Lingang since the general secretary Xi Jinping announce to establish a new area of Shanghai pilot FTZ at the opening ceremony of the first China International Import fair in 2018. Subsequently, the Lingang New Area of China (Shanghai) pilot FTZ was officially unveiled on August 20, 2019. So, what is new of Lingang New Area? What are the advantages of Lingang New Area for the future development of foreign-invested enterprises? Now, let us unravel the mystery of Lingang which is the 'fertile soil' for innovation, entrepreneurship near the coast of the east China sea.

1.       What is new in Lingang New Area? Compared with other free trade zones, what are the differences?

The full name of Lin’gang New Area is China (Shanghai) FTZ Lin’gang New Area. It is planned to set up new area in the south of Dazhi River, the east of Jinhui port and the south of Xiaoyangshan island and Pudong International Airport, covering an area of 873 square kilometres. Nanhui new city, port equipment industrial zone, Xiaoyangshan Island, south side of Pudong Airport and other areas with an area of 119.5 square kilometres were launched first. With the approval of the CPC Central Committee and the State Council, China (Shanghai) pilot Free Trade Zone Lin’gang New Area was officially established on August 20, 2020.
Lin’gang new area is in the southeast of Shanghai, bordered by Pudong International Airport in the north and Yangshan international hub port in the south. It is an important node of Shanghai coastal passage. The transportation advantages of sea and air transportation, railway, highway, inland river, and rail transit are very convenient. Compared with the free trade zone, the new area near Hong Kong has an area of nearly 120 square kilometres, with a large starting area. According to the plan, the new area shall be managed by reference to the special economic zone. All reform and opening-up measures in the region, involving the adjustment of existing laws or administrative regulations, shall be implemented in accordance with the legal procedures and with the unified authorization of the National People's Congress or the State Council.

2.       What is the investment orientation and future development trend of Lingang New Area？

The new zone focuses on the "seven industries", namely, integrated circuit, artificial intelligence, biomedicine, aerospace, new energy and intelligent networked vehicle, intelligent manufacturing, high-end equipment, and other key industries, and strives to build a world-class frontier industry cluster.

The key industries focused in the new zone represent some key industries for China's economic transformation, development and upgrading in the future. According to the general plan of port new area of China (Shanghai) Pilot Free Trade Zone issued by the State Council, the development goal of port new area is to establish a relatively mature system of investment and trade liberalization and facilitation by 2025, build a group of functional platforms with higher openness, gather a group of world-class enterprises, significantly enhance regional creativity and competitiveness, and enhance economic strength and economic amount jumped sharply. "By 2035, a special economic functional area with strong international market influence and competitiveness will be built, more mature and finalized system achievements will be formed, and the core function of global high-end resource element allocation will be built, which will become an important carrier for China's deep integration into economic globalization." So, the specific figure is that the economic scale will reach 1 trillion in 2035! And how to achieve the 1 trillion-yuan GDP target soon? It mainly depends on the following two fields:

1) Advanced manufacturing: including production and research in key areas such as integrated circuit, artificial intelligence, biomedicine, civil aviation, etc.
2) Financial market: research and carry out the functional pilot of integration of domestic and foreign currencies of free trade accounts and explore the free inflow and outflow of capital and free exchange in the new area.

3.       What are the advantages of the development of foreign-invested enterprises in the new area?

1) Lingang New Area will implement the foreign investment security review system, strengthen the opening up in key areas such as telecommunications, insurance, securities, scientific research and technical services, education, medical and health care, relax existing restrictions on registered capital and investment methods to promote fair competition among various market entities.
2) The reform of "separation of license and certificates" will be carried out in Lingang New Area.
3) The state, Shanghai Municipality and the Management Committee of the free trade zone will support the construction of the trial organization of international commercial disputes in Lingang New Area. The business and judicial environment for foreign investment and operation has been further optimized.
4) More free and convenient personnel management will be implemented in the new area. It will relax the restrictions on the employment of high-end talents in the modern service industry, and gradually introduce more open and convenient policies and measures in terms of the entry and exit of personnel and permanent residence of foreign talents.