The SFTZ: Free Trade Zone or Potential Dead Zone?

By Aliza Kempner

The business world is abuzz about the promise of the new Shanghai Free Trade Zone (SFTZ), a policy meant to rouse a broader Chinese reform agenda. With the country’s rising wages and ageing workforce, China has attempted to up its competitive gain, extending permission to enter the SFTZ to a number of domestic firms and American banking giant, Citibank. Because China’s implementation of rules varies across time and geography, the SFTZ could offer promise of a more predictable and transparent regulatory climate. But could the controlling attitude of bureaucrats and regulators curb China’s next stage of development? 

The Economist explores the risks