Announcement of the Standing Committee of the Shanghai Municipal People's Congress
The "Regulations of the China (Shanghai) Pilot Free Trade Zone" was revised and adopted at the 24th session of the Standing Committee of the 16th Shanghai Municipal People's Congress on September 25, 2025. It is hereby promulgated and shall come into effect as of September 29, 2025.
The Standing Committee of the Shanghai Municipal People's Congress
September 25, 2025
Regulations of the China (Shanghai) Pilot Free Trade Zone
(Adopted at the 14th session of the Standing Committee of the 14th Shanghai Municipal People's Congress on July 25, 2014, and revised at the 24th session of the Standing Committee of the 16th Shanghai Municipal People's Congress on September 25, 2025)
Chapter I General Provisions
Article 1 These Regulations are formulated in accordance with relevant laws, administrative regulations and relevant plans approved by the state, and in combination with the actual situation of this municipality, in order to promote and guarantee the construction of the China (Shanghai) Pilot Free Trade Zone, thoroughly implement the strategy of upgrading the pilot free trade zone, fully align with high international standards for economic and trade rules, expand high-level institutional opening-up, and give full play to the exemplary and leading role of the pilot free trade zone.
Article 2 These Regulations shall apply to the China (Shanghai) Pilot Free Trade Zone and the Lingang New Area (hereinafter collectively referred to as the "Pilot Free Trade Zone") established with the approval of the state.
Article 3 In promoting the construction of the Pilot Free Trade Zone, it is necessary to adhere to the overall leadership of the Party, adhere to high-level opening-up as the guide and institutional innovation as the core, adhere to the coordinated development of development and security, steadily expand institutional opening-up in terms of rules, regulations, management, standards, etc., strengthen the overall planning and systematic integration of reforms, promote the innovative development of the entire industrial chain, and explore new paths and accumulate new experiences for comprehensively deepening reforms and expanding opening-up.
Article 4 The Pilot Free Trade Zone shall, in line with the requirements for Shanghai to build the "Five Centers" and accelerate the construction of a socialist modern international metropolis with global influence, comprehensively enhance the level of institutional opening-up, the effectiveness of systematic reforms, and the quality of the open economy, build a national demonstration area for institutional opening-up, and create a new highland for reform and opening-up in the new era with a higher level of openness, a better business environment, and a stronger radiation effect.
Article 5 The vitality of business entities shall be fully stimulated. For matters not prohibited by laws, regulations and rules, natural persons, legal persons and unincorporated organizations are encouraged to actively carry out reform and innovation activities in the Pilot Free Trade Zone.
This municipality shall create a social atmosphere in the Pilot Free Trade Zone that dares to be the first, encourages reform and innovation, and tolerates failures. If reform and innovation fails to achieve the expected goals, but the relevant units and individuals make decisions and implement them in accordance with the relevant regulations of the state and this municipality, and are diligent and responsible and do not seek personal gains, no negative evaluation shall be made, and relevant responsibilities shall be exempted in accordance with the law.
Article 6 The construction of the business environment in the Pilot Free Trade Zone shall benchmark the highest standards and levels, create a world-class business environment with convenient trade and investment, efficient administrative efficiency, standardized government services, and a sound legal system, take the sense of gain of business entities such as enterprises as the evaluation standard, take the transformation of government functions as the core, and focus on forming replicable and promotable institutional achievements, so as to create a stable, fair, transparent and predictable development environment for business entities such as enterprises to invest and start businesses.
Article 7 This municipality shall strengthen the docking and cooperation between the Pilot Free Trade Zone and other domestic pilot free trade zones, promote the integration of the construction of the Pilot Free Trade Zone into national strategies such as the high-quality development of the Yangtze River Delta regional integration and the high-quality development of the Yangtze River Economic Belt, serve the Belt and Road Initiative, and form a coordinated development pattern with complementary advantages, distinctive features, and joint construction and sharing.
Chapter II Management System
Article 8 The Municipal People's Government shall, under the leadership of the State Council and the guidance of relevant state departments, organize and implement the work of reform and opening-up in the Pilot Free Trade Zone, and formulate, in accordance with the law, regulations and policy measures related to the construction and management of the Pilot Free Trade Zone.
This municipality shall establish a leading group for promoting the work of the China (Shanghai) Pilot Free Trade Zone to organize, lead and coordinate the work of the Pilot Free Trade Zone in an overall manner, fully implement the national work arrangements, study and plan ideas and implementation paths for comprehensively deepening reform and opening-up, and promote the implementation of major matters in regional construction and development.
The office of the leading group for promoting the work of the China (Shanghai) Pilot Free Trade Zone is located in the Municipal Development and Reform Department, which undertakes the daily work of the leading group.
Article 9 The management institutions of the China (Shanghai) Pilot Free Trade Zone and the management institutions of the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone shall be responsible for the tasks of development and construction, reform and development, institutional innovation, etc. in their respective regions, and perform relevant management duties in accordance with the law.
The Municipal People's Government shall establish a system and mechanism for comprehensive approval and relatively centralized administrative punishment in the Pilot Free Trade Zone, and the management institutions of the China (Shanghai) Pilot Free Trade Zone and the management institutions of the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone shall exercise the relevant administrative examination and approval powers and administrative punishment powers of this municipality in a centralized manner. The specific matters shall be determined and announced by the Municipal People's Government.
Article 10 The Municipal Development and Reform, Commerce, Economic Informatization, Market Supervision, Science and Technology, Finance, Data, Cyberspace Administration, Talent, Local Finance, Judicial Administration, Human Resources and Social Security, Intellectual Property, Transportation, Public Security, Planning and Resources and other departments shall support the various works of the Pilot Free Trade Zone in accordance with their respective duties, give priority to implementing major reform measures, arranging major innovation platforms, and planning major investment projects in the Pilot Free Trade Zone, and undertake other administrative affairs of the Pilot Free Trade Zone.
The relevant district and town people's governments shall provide support in aspects such as planning, funds, land use, energy guarantee, and supporting public services, and jointly promote the Pilot Free Trade Zone to implement tasks such as development and construction, reform and development, and institutional innovation.
The institutions of the central financial regulatory departments in Shanghai, as well as the customs, maritime affairs, border inspection, and communications management departments, shall perform administrative management duties in the Pilot Free Trade Zone in accordance with the law.
Article 11 This municipality shall improve the coordinated and linked mechanism for institutional innovation in the Pilot Free Trade Zone, promote the construction of the linked areas, replicate and promote the results of reform pilot projects, promote the coordinated layout and open development of industries, and support the linked areas to carry out differentiated and characteristic institutional innovation pilot projects in accordance with the law in combination with the actual situation of regional development.
Article 12 This municipality shall improve the comprehensive and regular evaluation mechanism for the Pilot Free Trade Zone. The Municipal Development and Reform Department shall, jointly with relevant departments, conduct effectiveness evaluations on aspects such as institutional innovation and policy pilot projects on its own or entrust a third party to do so, and provide policy suggestions for the Pilot Free Trade Zone to expand opening-up and deepen reforms.
Chapter III Investment Opening and Trade Facilitation
Article 13 The Pilot Free Trade Zone shall implement the management system of pre-establishment national treatment plus a negative list for foreign investment. Foreign investors and foreign-invested enterprises investing in the Pilot Free Trade Zone shall comply with the relevant provisions of the "Special Administrative Measures for Foreign Investment Access in the Pilot Free Trade Zones (Negative List)". In areas outside the negative list, management shall be implemented in accordance with the principle of consistency between domestic and foreign investment, and no hidden barriers shall be set up.
In areas within the negative list, for special investment projects that conform to the actual development of the Pilot Free Trade Zone, the Pilot Free Trade Zone may, in accordance with state regulations, implement experimental policy measures for foreign investment and carry out pilot projects for higher-level opening-up.
Article 14 Legal persons and unincorporated organizations in the Pilot Free Trade Zone may carry out various forms of overseas investment cooperation, and the record-filing management shall be implemented for overseas investment projects that are not sensitive as stipulated by the state.
The Pilot Free Trade Zone shall improve the construction of the comprehensive service platform for "going global" in overseas investment, integrate departmental resources and social resources, and provide investors with convenient and efficient services such as overseas policy consultation, security tips, and risk assessment and early warning.
Article 15 The Pilot Free Trade Zone shall promote the transformation and upgrading of trade, promote the integration of domestic and foreign trade, and develop new forms of business in goods trade through the following ways:
(1) Strengthen the innovation of offshore trade business, optimize financial services such as payment and settlement and trade financing, and enhance the international competitiveness of offshore trade;
(2) Develop bonded maintenance, bonded testing, bonded research and development, bonded exhibition and other bonded businesses, and the goods after maintenance that meet the requirements can be converted into domestic sales;
(3) Develop cross-border e-commerce, and provide conveniences in aspects such as customs clearance, tax collection and management, payment and settlement, overseas warehouses, and import and export returns and exchanges;
(4) Legally carry out the display, auction, and trading business of cultural relics and artworks, and implement customs clearance facilitation measures for the import and export of cultural relics and artworks that meet the conditions;
(5) Support the development of financial leasing activities for specific subject matters such as medical devices in the form of sale and leaseback in accordance with the law;
(6) Support enterprises to establish global trade operation centers;
(7) Support the development of international trade businesses such as bulk commodity trading, intermediate product trading, green trade, futures bonded delivery, and cross-border hedging.
Article 16 The management between the customs special supervision areas of the Pilot Free Trade Zone and overseas is the "first line" management, and the management between the customs special supervision areas of the Pilot Free Trade Zone and the areas outside the customs special supervision areas within the territory is the "second line" management. In accordance with the principle of "liberalizing the first line, safely and efficiently managing the second line, and freely circulating within the area", a supervision mode that is adapted to the development needs of international trade and other businesses shall be established and improved.
This municipality supports the customs, maritime affairs, border inspection and other port inspection and quarantine agencies to carry out innovation in the supervision system for goods trade in the Pilot Free Trade Zone in accordance with the principle of convenient customs clearance, high efficiency and safety, optimize the customs clearance process and improve the customs clearance services; supports the port inspection and quarantine agencies, port operation units, etc. to improve the digitalization level of the customs clearance declaration, inspection and release, and follow-up supervision in the Pilot Free Trade Zone, and promote the improvement of the liberalization and facilitation level of goods trade.
The Municipal Port Department, under the guidance of relevant state departments, shall strengthen the coordination and service for customs clearance in the Pilot Free Trade Zone, promote the linkage and cooperation among port inspection and quarantine agencies, relevant departments of this municipality, and port operation units in all aspects of customs clearance, and timely coordinate and handle various problems affecting the daily operation of customs clearance.
The market supervision and other departments shall, in accordance with the authorization of the state in the Pilot Free Trade Zone, explore expanding the scope of applicants for exemption from compulsory product certification, optimize the application requirements, innovate supervision methods, and pilot the inspection work for imported products for special purposes. Products that pass the inspection can be used for production and use in specific areas.
Article 17 The Pilot Free Trade Zone supports the construction of the "single window" for international trade, realizing "one platform, one-time submission, result feedback, and data sharing"; and constructs a digital base for smart ports and a "one-stop" public service platform for trade digitalization.
The data, cyberspace administration and other departments support the application of technologies such as blockchain in the Pilot Free Trade Zone to empower the application of electronic transferable records such as electronic bills of lading, electronic warehouse receipts, and electronic bills, promote the orderly chaining of document data, supervision data, trade data, and logistics data, realize the digitalization of the entire process of cross-border trade, and reduce costs and increase efficiency for various business entities.
Article 18 The Pilot Free Trade Zone shall implement the management system of a negative list for cross-border trade in services in accordance with state regulations. In areas outside the negative list, management shall be implemented in accordance with the principle of equal treatment for domestic and foreign services and service providers.
The economic informatization, communications management, science and technology, health and wellness, cultural tourism, education, judicial administration and other departments support the Pilot Free Trade Zone to expand opening-up in fields such as value-added telecommunications, biotechnology, medical institutions, cultural education, and legal services by relaxing restrictions on foreign investment access, promoting the opening-up of technology applications, introducing high-quality international resources, and promoting international collaborative innovation in accordance with the state's deployment, and promote international cooperation.
Article 19 The financial, transportation, judicial administration and other departments support the Pilot Free Trade Zone to enhance the energy level of the shipping service industry, carry out business innovations in ship transportation, ship management, crew services, shipping transactions, etc., explore the application of shipping financial tools such as transferable cargo documents, enrich the supply of shipping insurance products, and improve the professional level of shipping arbitration such as maritime arbitration and aviation arbitration.
The Municipal Transportation and Port Departments support the Pilot Free Trade Zone to carry out international transshipment and distribution business. With the authorization of the state, eligible international container liner companies can use their wholly-owned or controlled non-flag-of-convenience international ships to carry out the coastal feeder service of foreign trade containers with Yangshan Port as the international transshipment port between Yangshan Port and domestic ports stipulated by the state.
This municipality supports the Pilot Free Trade Zone to carry out the pilot project of bonded bunkering for the replacement of green fuels for international ships, and promote the application and standardized management of new fuels such as liquefied natural gas, high and low sulfur blended fuel oil, biofuel oil, green methanol, green hydrogen, and green ammonia.
The transportation, commerce, market supervision and other departments support the Pilot Free Trade Zone to innovate the supply system for medicines and medical devices for international ships, and optimize the comprehensive port supply services.
Article 20 The Pilot Free Trade Zone shall implement the international ship registration system with "China Yangshan Port" as the port of registry, and implement an efficient ship registration process and facilitation services. For enterprises legally established in the Pilot Free Trade Zone to conduct international ship registration, there is no limit on the foreign shareholding ratio of the enterprises. The ship registration agency can issue electronic registration certificates, and the electronic registration certificates have the same effect as the paper registration certificates.
Chapter IV Financial Innovation and Opening-up
Article 21 The Pilot Free Trade Zone shall carry out financial innovation pilot projects in accordance with the law on the premise of ensuring financial security, improve the financial market system, product and service system, institutional system, and infrastructure system, strengthen the function of the financial opening-up hub portal, enhance the global resource allocation ability, better serve and lead the development of the real economy, and enhance the competitiveness and influence of Shanghai as an international financial center.
Article 22 This municipality supports the construction and operation of financial infrastructure such as financial asset registration and custody systems, clearing and settlement systems, trading facilities, and important payment systems in the Pilot Free Trade Zone.
The Municipal People's Government and its relevant departments support the central financial regulatory departments to establish financial infrastructure operation institutions in the Pilot Free Trade Zone, and jointly promote the realization of domestic and foreign interconnection of the financial infrastructure operation institutions in Shanghai.
Article 23 The Pilot Free Trade Zone shall, in accordance with the state's deployment, promote the expansion of the opening-up of financial factor markets, mainly including:
(1) Improve the functions and global network coverage of the RMB cross-border payment system, and provide safe and efficient cross-border settlement and clearing services for global trade, shipping, investment and financing, etc. denominated in RMB;
(2) Support foreign exchange trading venues to provide trading facility services for RMB foreign exchange trading in the Pilot Free Trade Zone, and improve the currency foreign exchange trading services for countries along the Belt and Road Initiative;
(3) Promote futures trading venues to launch futures and options trading varieties for international investors, denominated and settled in RMB, for international bulk commodities, etc.;
(4) Support gold trading venues to carry out product authorization cooperation with overseas trading venues, expand the application range of the RMB benchmark price in the international mainstream market, explore the internationalization of the delivery of specific varieties, and set up overseas delivery warehouses;
(5) Support the construction of a trading repository covering the entire financial market, and improve the monitoring and early warning mechanism for cross-border capital flows, the macro-prudential assessment mechanism, and the coordinated and linked mechanism.
Article 24 The Pilot Free Trade Zone shall, in accordance with the state's deployment, support the construction of functional platforms in the financial field, mainly including:
(1) Support securities trading venues to optimize the rule design related to the Science and Technology Innovation Board, and support enterprises that break through key core technologies in new industries, new business forms, and new technologies to raise funds and develop on the Science and Technology Innovation Board;
(2) Support insurance trading venues to build an international reinsurance registration and trading center, build an institutional agglomeration center, a business trading center, and a risk management center, and establish a unified registration service system;
(3) Support futures trading venues to explore and improve the shipping derivatives system, and build a national on-site registration center for bulk commodity warehouse receipts;
(4) Support regional equity custody and trading venues to build a transfer platform for private equity and venture capital equity shares;
(5) Support the construction of an international financial asset trading platform, and create a functional platform for allocating global financial resources and facilitating international investors to deeply participate in the Chinese financial market.
Article 25 The Pilot Free Trade Zone shall improve the free trade account system, realize separate accounting management, expand the functions and application scenarios of accounts, optimize account rules, and facilitate the flow of cross-border funds.
This municipality supports business entities in the Pilot Free Trade Zone that meet relevant regulations to handle relevant business through free trade accounts in accordance with the law on the premise of effectively preventing risks; supports overseas enterprises to open free trade accounts in accordance with the law and regulations and use these