Three keys to unlock Lingang New Area's potential

Legislators and political advisors suggested more flexible policies on trade, freer finance system and better social facilities to accelerate the construction of the Lingang New Area, the new expansion to the China (Shanghai) Pilot Free Trade Zone, during Shanghai's ongoing annual legislative and political consultative sessions.

According to the central government's plan, the Lingang New Area, established in August, will prioritize the expanding of cross-border financial services to support the internationalization of renminbi, and the development of a new model for international trade focusing on digital trade and cross-border e-commerce.

Yang Demei, a member of China Democratic League and deputy governor of Minhang, suggested the new area adopts a more relaxed supervision system to ensure free flow of goods within the area for transport and processing, which will help attract more multinational companies, especially those involved in the processing business for re-exporting.

Bao Shuowang, commissioner of the National Audit Office to Shanghai, pointed out the current system for foreign exchange settlement under capital account is still not convenient enough to serve those companies largely dealing with business overseas.

He suggested a freer capital account convertibility to be introduced in the new expansion of the free trade zone, which will enable more financial options such as individual foreign direct investment.