Over the weekend, China’s State Council approved a number of policies which included the Shanghai Free Trade Zone (FTZ).
The total area is about 29 square kilometres, but that is not the point. This is truly a bold move by the Chinese and sets them up to take their place as a dominant financial power in the decades and centuries ahead.
Too much hyperbole? I don’t think so because associated with the FTZ were other reforms and the Shanghai FTZ is going to be a test lab and incubator for convertible Yuan and more freely floating interest rates.
State-run Xinhua news agency quoted Commerce Minister Gao Hucheng as saying that the creating FTZ was a crucial decision made in the new era of China’s reform and opening-up.
“It follows the tendency of global economic developments and reflects a more active strategy of opening-up,” Gao said at the launch ceremony.
Australian business, your opportunity awaits – go get it.
Follow Greg McKenna on Twitter.