​Shanghai FTZ gains growth momentum as GOP benefits multinationals

The China (Shanghai) Pilot Free Trade Zone in East China's Shanghai has achieved impressive economic growth partly due to the Global Operation Program, which was launched in December 2020 to help multinationals in the free trade zone expand their businesses.

Since the inception of the GOP, the Shanghai FTZ Bonded Area has generated 1,190 billion yuan ($183.66 billion) in operating revenue, up 32.0 percent year-on-year. Its imports and exports have reached 545.8 billion yuan, an 18.0-percent increase from the previous year and accounting for 29.0 percent of Shanghai's total.

During the period, eight multinationals established their regional headquarters in the area, bringing the total number to 126, which is equivalent to 33.0 percent of Pudong New Area's total and 15.3 percent of Shanghai's total.

The GOP has resulted in new growth of multinational companies by offering them convenient government service to help address business issues, said Annie Gao, managing director of Wieland Metals Shanghai, a multinational manufacturer of semi-finished products in copper and copper alloys.

Wieland is among the first 41 companies that joined the GOP. As the sales center of the group, Wieland Metals Shanghai sells products mainly to South Korea, Japan, Germany, and the United States. However, the company had been unable to conduct offshore trading until a GOP special team helped it obtain air waybills.

During the first half of 2021, the company's sales have increased nearly 30 percent year-on-year, said Gao. She added that Wieland plans to expand investment in the bonded area for its improving business environment.

In order to develop a higher-level headquarters economy, Pudong New Area has launched a number of action plans like the GOP to attract more market entities, talents, and capital. According to Li Xiaohong, director of the economic development department of the Shanghai FTZ Bonded Area Administration, another group of 53 companies is expected to join the GOP soon.

In addition, Pudong has created a whitelist to facilitate cross-border payment, which consisted of 374 companies in total as of the end of June. Pudong is currently working to establish an information sharing system between government, enterprises, and third-party institutions to further promote the development of offshore trading, according to the area's officials.