The State Council has approved a general plan for advancing institutional opening-up of China (Shanghai) Pilot Free Trade Zone in alignment with high-standard international economic and trade rules, according to a circular issued on Dec 7.

The circular urged the zone to expand opening-up of the service trade. Under the framework of a national security management system for cross-border data transfer, financial institutions will be allowed to transfer data overseas necessary for daily operations.

The zone should refine policies for multinational companies to operate and manage cross-border capital and support the companies to set up capital management centers.

Free trade account system will be improved to ensure the free flow of capital between Shanghai FTZ and overseas regions in an orderly manner and in accordance with the law.

Goods trade liberalization and facilitation will be strengthened.

Commercial cryptography products that are not on the import control list and will not endanger national security or public interests will be allowed to be imported without limitation.

The zone should also improve the operation model of multi-country consolidation (MCC) platform to attract global MCC companies to establish MCC centers in the Yangshan Free Trade Zone.

For some imported goods after overseas inspection and quarantine, the process in China will be simplified.

Relevant overseas parties can equally take part in the stipulation and revision of the regional laws and regulations in Shanghai FTZ according to law.

High-standard digital trade rules should be implemented as a priority, the circular said. Businesses and individuals can provide data overseas that are in compliance with national security management requirements for cross-border data transfer.

The zone will carry out data security management certification system to guide businesses to enhance data security management, and form standards and best practices in personal information protection.

To promote digital technology application, electronic invoices, digital identity authentication system and artificial intelligence will be used in the zone.

The zone is required to build data sharing mechanisms to encourage businesses to share data according to laws and regulations, promoting the innovative application of big data.

Government will further data opening-up, disclose methods to obtain and use the data and release the contents of the data sets. Small and medium enterprises will be encouraged to participate in government procurement through platforms with digital tools.

The zone will also promote cooperation between overseas and domestic institutions, in order to build a digital economy exchange platform for SMEs.

In addition, intellectual property rights protection will be enhanced, including trademarks, geographical indication and patents.

Furthermore, reforms will be carried out in government procurement and State-owned enterprises with enhanced protection of workers’ rights and interests and the environment.