Two Shanghai export zones upgraded amid further opening-up efforts

Shanghai has upgraded two of its six export processing zones to comprehensive bonded zones in response to the country's latest efforts to further open up and shift its export-oriented development model.

The two zones upgraded on Wednesday, Caohejing and Fengxian, were both established in 2003 when China aimed to attract foreign investment for export-oriented production to promote economic growth. Companies in the zones were entitled to customs exemptions only when they imported raw materials and exported final products outside of China.

With the upgrade, manufacturers within the zones are allowed to take domestic orders, and companies can now expand their businesses to research and development, international procurement and retail, such as cross-border e-commerce, while still enjoying preferential tax policies.