IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v34y2014icp1-6.html
   My bibliography  Save this article

Policy and politics behind Shanghai’s Free Trade Zone Program

Author

Listed:
  • Wan, Zheng
  • Zhang, Yang
  • Wang, Xuefeng
  • Chen, Jihong

Abstract

China launched the Shanghai Free Trade Zone (FTZ) Program on September 29, 2013 in a bid to reduce administrative interventions, ease restrictions on investments, further open up its financial system, and internationalize its currency to booster shipping, logistics, and commerce. This article aims to present a background of the Shanghai FTZ and some reflections on it. China’s economic reconstruction has made a major impact on its port cities. Competitions between ports are gradually evolving into competitions between supply chains, with ports no longer considered as isolated links in the transport chain but rather as integral links in the supply chain. Ports are transitioning into fourth-generation ports with the establishment of logistics and value-added activities, which are developed in conjunction with local industrial and service businesses. In this trend, China’s port cities can provide a wide range of value-added services and become centers of commodity flow, capital flow, and information flow. Specifically, the combined effects of driving the development of peripheral industries and actively coordinating the activities of relevant parties help regulate the operations of the entire supply chain to obtain potential value-added benefits. The implementation of the Shanghai FTZ will not only stimulate trade but will also bring increased shipping and finance opportunities to the city. With free trade as the new direction and focus of the country’s economic initiatives, the Shanghai FTZ will hopefully lay the groundwork for a new round of reforms and restructuring of the Chinese economy.

Suggested Citation

  • Wan, Zheng & Zhang, Yang & Wang, Xuefeng & Chen, Jihong, 2014. "Policy and politics behind Shanghai’s Free Trade Zone Program," Journal of Transport Geography, Elsevier, vol. 34(C), pages 1-6.
    • Handle: RePEc:eee:jotrge:v:34:y:2014:i:c:p:1-6
    DOI: 10.1016/j.jtrangeo.2013.10.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692313002135
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2013.10.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chengjin Wang & César Ducruet, 2012. "New port development and global city making : Emergence of the Shanghai-Yangshan multilayered gateway hub," Post-Print hal-03246961, HAL.
    2. Yibin Xiao & Adolf K.Y. Ng & Hangjun Yang & Xiaowen Fu, 2012. "An Analysis of the Dynamics of Ownership, Capacity Investments and Pricing Structure of Ports," Transport Reviews, Taylor & Francis Journals, vol. 32(5), pages 629-652, June.
    3. Chengjin Wang & César Ducruet, 2012. "New port development and global city making: Emergence of the Shanghai-Yangshan multilayered gateway hub," Post-Print halshs-00717879, HAL.
    4. Wolfgang Keller & Ben Li & Carol H. Shiue, 2011. "China’s Foreign Trade: Perspectives From the Past 150 Years," The World Economy, Wiley Blackwell, vol. 34(6), pages 853-892, June.
    5. Dennis Tao Yang & Vivian Weijia Chen & Ryan Monarch, 2010. "Rising Wages: Has China Lost Its Global Labor Advantage?," Pacific Economic Review, Wiley Blackwell, vol. 15(4), pages 482-504, October.
    6. Mahpula, Abduwali & Yang, DeGang & Kurban, Alishir & Witlox, Frank, 2013. "An overview of 20years of Chinese logistics research using a content-based analysis," Journal of Transport Geography, Elsevier, vol. 31(C), pages 30-34.
    7. A Beresford & S Pettit & Q Xu & S Williams, 2012. "A study of dry port development in China," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(1), pages 73-98, March.
    8. Theo E. Notteboom & Willy Winkelmans, 2001. "Structural changes in logistics: how will port authorities face the challenge?," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(1), pages 71-89, January.
    9. Wang, Xuan & Chen, Weiqi & Zhang, Luoping & Jin, Di & Lu, Changyi, 2010. "Estimating the ecosystem service losses from proposed land reclamation projects: A case study in Xiamen," Ecological Economics, Elsevier, vol. 69(12), pages 2549-2556, October.
    10. Pak K. Lee, 1998. "Local Economic Protectionism in China’s Economic Reform," Development Policy Review, Overseas Development Institute, vol. 16(3), pages 281-303, September.
    11. Wang, Chengjin & Ducruet, César, 2012. "New port development and global city making: emergence of the Shanghai–Yangshan multilayered gateway hub," Journal of Transport Geography, Elsevier, vol. 25(C), pages 58-69.
    12. Patrick Verhoeven, 2010. "A review of port authority functions: towards a renaissance?," Maritime Policy & Management, Taylor & Francis Journals, vol. 37(3), pages 247-270, May.
    13. Cai, Fang & Wang, Meiyan, 2010. "Growth and structural changes in employment in transition China," Journal of Comparative Economics, Elsevier, vol. 38(1), pages 71-81, March.
    14. James J. Wang * & Brian Slack, 2004. "Regional governance of port development in China: a case study of Shanghai International Shipping Center," Maritime Policy & Management, Taylor & Francis Journals, vol. 31(4), pages 357-373, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caitlin N. Benton & Madeline Napier & M. Ali Ülkü, 2016. "On Supply Chain Integration to Free Trade Zones: The Case of the United States of America," Global Business Review, International Management Institute, vol. 17(4), pages 779-789, August.
    2. Zhang, Qiang & Pu, Shunhao & Luo, Lihua & Liu, Zhichao & Xu, Jie, 2022. "Revisiting important ports in container shipping networks: A structural hole-based approach," Transport Policy, Elsevier, vol. 126(C), pages 239-248.
    3. Chen, Wanling & Hu, Yao & Liu, Bei & Wang, Hui & Zheng, Mingbo, 2022. "Does the establishment of Pilot Free Trade Test Zones promote the transformation and upgradation of trade patterns?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 114-128.
    4. Feng, Wei & Sun, Shujun & Yuan, Hang, 2023. "Research on the efficiency of factor allocation in the pilot free trade zones," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 727-745.
    5. Chen, Jihong & Wan, Zheng & Zhang, Fangwei & Park, Nam-kyu & Zheng, Aibing & Zhao, Jun, 2018. "Evaluation and comparison of the development performances of typical free trade port zones in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 506-526.
    6. Haoqiang Li & Jihong Chen & Zheng Wan & Huaxin Zhang & Maoxin Wang & Yun Bai, 2020. "Spatial evaluation of knowledge spillover benefits in China’s free trade zone provinces and cities," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1158-1181, September.
    7. Siwen Xia & Jiaying Han & Anglu Li & Penghao Ye & Huarong Zhang, 2024. "Impact of Free Trade (Pilot) Zone Establishment on Urban Land Use Efficiency—Empirical Evidence from Cities in China," Land, MDPI, vol. 13(7), pages 1-25, July.
    8. Li, Zhaohua & Pang, Suqin & Zhu, Zhiyun, 2024. "The impact of pilot free trade zones on entrepreneurship: Evidence from a quasi-natural experiment in China," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    9. Bei Wang & Hong Chen & Ruiqi Chen & Weiting Zeng & Lechuan Ye, 2023. "Does the Green Development of Cities Need High-Level Opening Up? A Quasi-Natural Experiment Based on China’s Pilot Free Trade Zone," Sustainability, MDPI, vol. 15(7), pages 1-20, March.
    10. Te Bao & Yun Dai & Yanxiang Feng & Shuai Liu & Ruixin Wang, 2023. "Trade liberalisation and trade and capital flows: Evidence from China pilot free trade zones," The World Economy, Wiley Blackwell, vol. 46(5), pages 1408-1422, May.
    11. Zeng, Jing & Zhang, Bingqian & Li, Kevin K., 2024. "The impact of free trade zones on ESG performance: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1110-1122.
    12. Muge Seda Ates & Gizem Ates & Demet Toktas & Esra Canpolat Gokce, 2023. "The Relationship Imports and Exports in Free Zones Have with Turkiye Foreign Trade and Employment: The Fourier Autoregressive Distributive Lag (ADL) Hidden Cointegration Test," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-1), pages 385-418, June.
    13. Li, Sujuan & Liu, Jiaguo & Kong, Yudan, 2021. "Pilot free trade zones and Chinese port-listed companies performance: An empirical research based on quasi-natural experiment," Transport Policy, Elsevier, vol. 111(C), pages 125-137.
    14. Liu, Jiaguo & Wang, Xiaoye & Guo, Junyu, 2021. "Port efficiency and its influencing factors in the context of Pilot Free Trade Zones," Transport Policy, Elsevier, vol. 105(C), pages 67-79.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feng, Hongxiang & Grifoll, Manel & Zheng, Pengjun, 2019. "From a feeder port to a hub port: The evolution pathways, dynamics and perspectives of Ningbo-Zhoushan port (China)," Transport Policy, Elsevier, vol. 76(C), pages 21-35.
    2. Chengjin Wang & César Ducruet, 2013. "Regional resilience and spatial cycles: Long-term evolution of the Chinese port system (221BC-2010AD)," Post-Print halshs-00831906, HAL.
    3. Zheng, Jianfeng & Yang, Dong, 2016. "Hub-and-spoke network design for container shipping along the Yangtze River," Journal of Transport Geography, Elsevier, vol. 55(C), pages 51-57.
    4. Yang, Jinglei & Luo, Meifeng & Ji, Abing, 2016. "Analyzing the spatial–temporal evolution of a gateway’s hinterland: A case study of Shanghai, China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 355-367.
    5. Jiang, Ziran & Lei, Liping & Zhang, Jianzhen & Wang, Chengjin & Ye, Shilin, 2023. "Spatio-temporal evolution and location factors of port and shipping service enterprises: A case study of the Yangtze River Delta," Journal of Transport Geography, Elsevier, vol. 106(C).
    6. Yang, Dong & Notteboom, Theo & Zhou, Xin, 2021. "Spatial, temporal and institutional characteristics of entry strategies in inland container terminals: A comparison between Yangtze River and Rhine River," Journal of Transport Geography, Elsevier, vol. 90(C).
    7. Park, Jin Suk & Seo, Young-Joon, 2016. "The impact of seaports on the regional economies in South Korea: Panel evidence from the augmented Solow model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 107-119.
    8. Ling Yu & Pengfei Xu & Jia Shi & Jihong Chen & Hong Zhen, 2020. "Driving Mechanism of Port-City Spatial Relation Evolution from an Ecological Perspective: Case Study of Xiamen Port of China," Sustainability, MDPI, vol. 12(7), pages 1-18, April.
    9. Yap, Wei Yim & Hsieh, Cheng-Hsien & Lee, Paul Tae-Woo, 2023. "Shipping connectivity data analytics: Implications for maritime policy," Transport Policy, Elsevier, vol. 132(C), pages 112-127.
    10. de Langen, P.W. & Heij, C., 2013. "Performance Effects of the Corporatisation of Port of Rotterdam Authority," Econometric Institute Research Papers EI2013-06, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    11. Song, Lili & van Geenhuizen, Marina, 2014. "Port infrastructure investment and regional economic growth in China: Panel evidence in port regions and provinces," Transport Policy, Elsevier, vol. 36(C), pages 173-183.
    12. Carlucci, Fabio & Cirà, Andrea & Ioppolo, Giuseppe & Massari, Stefania & Siviero, Lucio, 2018. "Logistics and land use planning: An application of the ACIT indicator in European port regions," Land Use Policy, Elsevier, vol. 75(C), pages 60-69.
    13. Monios, Jason & Wilmsmeier, Gordon, 2013. "The role of intermodal transport in port regionalisation," Transport Policy, Elsevier, vol. 30(C), pages 161-172.
    14. Ziran, Jiang & Chunfang, Pi & Huayou, Zhu & Chengjin, Wang & Shilin, Ye, 2022. "Temporal and spatial evolution and influencing factors of the port system in Yangtze River Delta Region from the perspective of dual circulation: Comparing port domestic trade throughput with port for," Transport Policy, Elsevier, vol. 118(C), pages 79-90.
    15. Feng, Lin & Yuan, Liwei, 2017. "A developmental model on quantifying urban policy effectiveness in port city relations," MPRA Paper 81037, University Library of Munich, Germany.
    16. Qu, Chenrui & Zeng, Qingcheng & Li, Kevin X. & Lin, Kun-Chin, 2020. "Modeling incentive strategies for landside integration in multimodal transport chains," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 47-64.
    17. Zhang, Qiang & Yan, Kai & Yang, Dong, 2021. "Port system evolution in Chinese coastal regions: A provincial perspective," Journal of Transport Geography, Elsevier, vol. 92(C).
    18. Notteboom, Theo & Yang, Dong & Xu, Hua, 2020. "Container barge network development in inland rivers: A comparison between the Yangtze River and the Rhine River," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 587-605.
    19. Feng, Hongxiang & Grifoll, Manel & Yang, Zhongzhen & Zheng, Pengjun, 2021. "Latest challenges to ports in public-private partnership: Case of Dandong Port (China)'s bankruptcy," Transport Policy, Elsevier, vol. 110(C), pages 293-305.
    20. Jie Li & Rebecca Lai Har Chiu, 2020. "State rescaling and large-scale urban development projects in China: The case of Lingang New Town, Shanghai," Urban Studies, Urban Studies Journal Limited, vol. 57(12), pages 2564-2581, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:34:y:2014:i:c:p:1-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.