The East gateway to the Made in Italy, Shanghai Free Trade Zone

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China opens the gates to the free market of international business and the East is tinged with the Italian flag.

More than ever before, the market in East Asia has become one of the references and targets of many companies who see the East as a destination for major investments and substantial business.

It is certainly important to be present on the Chinese market, but it is equally important to choose an appropriate strategy, based on careful choices of partners who are able to give the highest visibility to products in a vast and well-stocked territory such as that of China.

What makes the East market more attractive is the political choice of the Chinese central government to open the gates of the Empire to the international market, offering the world an important piece of development. Shanghai has become within a decade the area designated for national economic development of China and the whole of Southeast Asia, the flagship of international business, with the launch of the new and largest Free Trade Zone - FTZ or free trade zone in Shanghai.

The stakes are very high, the central government itself has bet on an annual turnover of 100 billion dollars and it was the Chinese Premier Li Keqiang who supported the initiative without hesitation. The FTZ is meant to circulate throughout China the markets of the entire world and, when the news began to circulate as early as 2012, a year before the official opening, there have been many companies that have started to introduce new market strategies, taking advantage of new tax schemes implemented by the Chinese government and taking up new commercial arrangements with partners in the East, to the point that the stock market has been going up at every news and other free areas have been put on alert.

According to the Sole 24, in the FTZ it is strong role of mechanics, the fashion industry has greatly increased with the big names that have been joined by more and more medium-sized brands, up to the food industry: in and around Shanghai there are 70 Italian restaurants, plus the export of wines; the agri-food industry in general in currently becoming really important, through the creation of a purpose-built distribution network of Food & Beverage that did not exist before.

According to some Italian entrepreneurs living in Shanghai, the Italian character is a value that the Chinese market appreciates, with a very high request of the quality of the Italian ideas and products. You can meet these needs in accordance with a dedicated and certified communication model to be addressed to Chinese consumers and investors. The same administration of FTZ is well prepared to support initiatives striving to value Made in Italy by opening the gates of East Asia to the Italian offers and resulting in a renewed commercial axis between the beautiful country – l'Italia – and China. According to the latest agreements, the Chinese Premier Li Keqiang agreed on a cooperation with the Italian Prime Minister, Matteo Renzi, for the realization of this transnational axis for the use and promotion of Italian products through the channels Tmall and Alibaba.

In this very desirable scenario, therefore, Italy can play a role well above expectations of business, in a basket of offerings that will appeal to buyers of the East. In fact, even the “International Development Agency and Environment”, in collaboration with its partners in China, is launching a program of business development for the Italian manufacturers who, invited to participate in order to promote directly their products made in Italy in the Asian market, can take with confidence a growth industry; this is possible thanks to a promotional strategy implemented with some Chinese logistics companies, and administrative bodies of the Shanghai area, which put them in the condition to make use of services for business promotion in China at zero cost. Even small and medium-sized Italian companies will therefore be favored abroad in a current time of low domestic demand, allowing them to boost the economy and be recognized and appreciated like the best-known brands in the international competition, safely penetrating the Chinese markets. The East is finally opened to the Italian tricolor allowing you to make excellence known virally and competently.

We need to know that the FTZ marks an important milestone in the growth of China, which intends to go ahead with radical internal reforms and unexpected policies projected towards greater openness to world markets, in line with the international economic trends. The priorities of the Shanghai administration are to explore new paths and systems for China's opening-up policies, to accelerate the transformation of a government well prepared to promote its economic restructuring and development, in order to ensure an effective and stable growth.

In addition, the FTZ also aims to undertake the development of innovative ideas that can be replicated in the future and in other parts of the country. The presence of a new "FTZ" in the East Asian region is able to supply China with rapid business momentum for a renewed global competitiveness and create a new platform projected to strengthen international trade relations. This line promotes global cooperation and increases the quality of China's economic development, leading international business in the East to a certified standard.

Multinational companies in electronics, medical devices and high-end consumer goods have established distribution centers in the area and led the central government to expand the project finance lease.

In the final analysis, by examining the structure of the shipping logistics and transport business in China, we need to know that, according to the administration of the Free Trade Zone, the top three companies in the world of express shipping: UPS, DHL and FedEx have created, inside the area, their subsidiaries, contributing to a strong growth in business in the distribution chain of goods through airport services, financial leasing, express shipping and trade shows for the whole of East Asia. Ample spaces in pavilions have been set up and offer the opportunity both to promote products and to store the goods inside the area, therefore exempting participating companies from taxes for customs clearance.

We continue in this article with a brief description of what the FTZ means in terms of area; it uses over 28.78 km square. The area joins the industrial area north of Shanghai, Pudong Airport Free Trade Zone and the two existing FTZs of Wai Gao Qiao (one for the logistics and the other for the import / export). The entire area is then divided into four areas and is governed under special administration of the customs of the Chinese government.

A strategic importance among the 4 areas of the zone is the area of Yangshan port, of 14.16 km square. The place was set up in June 2005 and was the first logistics complex approved by the State Council of China. It is a major milestone in Shanghai to complete the entire area with international shipping. In fact, the port has attracted, over the years, thousands of companies in sectors such as information technology, electronics, automotive and auto parts, food processing and high-street clothing. Companies have thus realized important distribution centers located in the port and established significant links with the main navigation. The port is currently in a phase of strong growth, making the more profitable structure in China compared to the other 15 ports of free trade in the nation.

Not least, is the airport area in Pudong covering an area of 3.59 square kilometers and established in July 2009. It is designed to make the most of the Asian-Pacific Resource and works as an experimental area for innovative air services.

For those wishing to learn more can contact International Development and the Environment Agency.

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