(Adopted at the 14th Session of the Standing Committee of the 14th Shanghai Municipal People's Congress of Shanghai on July 25, 2014)

Chapter I  General Provisions

Article 1 For the purposes of pushing forward and ensuring the construction of China (Shanghai) Pilot Free Trade Zone, giving full play to its role of “experimental plot” in advancing reforms and raising the level of open economy, these Regulations are formulated in accordance with the Decision of the Standing Committee of the National People’s Congress on Authorizing the State Council to Temporarily Adjust the Relevant Administrative Approval Items Prescribed in Laws in the China (Shanghai) Pilot Free Trade Zone, the Framework Plan for China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the “Framework Plan”) approved by the State Council, the Decision of the State Council on Adjusting Temporarily Administrative Approval Items or Special Administrative Measures for Access Prescribed by Related Administrative Regulations and the State Council’s Documents and other related laws and administrative regulations.

Article 2 These Regulations apply to the China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the “PFTZ”) established with approval of the State Council.

Article 3 To push forward the construction of the PFTZ, it is imperative to focus on the national strategic requirements and the building of Shanghai international financial center, international trade center, international shipping center and international economic center, follow the principles of taking the lead in making the first try, putting risks under control, advancing by stages and making gradual perfection, combine the expanded opening and the institutional reform, combine the cultivating function and policy innovation, accelerate the transformation of government functions, establish the basic institutional system and surveillance mode in line with the common international investment and trade rules, cultivate an internationalized, market-driven and law-based business environment, and build up a pilot free trade zone up to the international standards with convenient investment and trade, highly active and efficient supervision and standardized legal administration.

Article 4 To push forward the construction of the PFTZ in this Municipality, it is imperative to focus on key fields and links of institutional innovation, make full use of the existing legal regime and policy resources, reform the system and mechanism that hamper the institutional innovation, constantly motivate the initiative and enthusiasm in institutional innovation so as to build up a good atmosphere of independent reform and proactive attitude.

Article 5 The vitality of market subjects shall be motivated fully and in respect of matters not prohibited by laws, rules and regulations; citizens, legal persons and other organizations shall be encouraged to actively conduct activities of reform and innovation in the PFTZ.