New FTZ rules to trigger retail competition

China's retailers may be facing fiercer competition than ever with changes in the China (Shanghai) Pilot Free Trade Zone, market insiders said at a forum in Shanghai on Wednesday.

The lifting of some restrictions in the FTZ lets foreign-funded enterprises operate online stores within the zone.

The relaxation, which may enable qualified foreign retailers to sell products via FTZ entities to Chinese consumers, may pose challenges to domestic retailers in after-sale services, pricing and management, said Yan Jing, deputy chief of kuajingtong.com, an FTZ-registered online trading platform, at a forum organized by the World Retail Congress.