Excitement and Confusion: Shanghai (Pilot) Free Trade Zone

Shanghai Free Trade Zone (SFTZ) had been considered one of the important policy reform applications in the past decade for China. It has created very high expectations from both domestic and international stakeholders. Being motivated to create an experimental zone for dealing with China's slowing down and transitional economy and international pressure externally, SFTZ was expected to generate a semi-free trade climate in terms of being tax- and cost-friendly and host high growth-based, high-tech, multisized start-ups and enterprises inbound or outbound with different identities. The expectation of SFTZ remained quite high for a while, however, gradually the public's confidence and hope was lost. What was the reason for this? From what angle can we view the relationship between SFTZ (potential) members and SFTZ (representing government and most frontier policy)? How can we suggest that SFTZ help stakeholders gain confidence and facilitate entrepreneurship and innovation taking place there? This case will take you to an overview of SFTZ and discuss with you the phenomenon of China's transition through this snapshot.