Attracting foreign investment has been one of the primary goals of China's free trade zones. Latest statistics show China remains a major foreign investment destination, as the country copes with a changing domestic and international business environment. Our reporter Yang Chengxi went to the Shanghai Free Trade Zone and filed this report.

 

(Nat Sound of busy keyboards, telephone rings, computer screen with market digits blinking) Stocks, futures, buy, sell. This is Lujiazui, a part of the Shanghai Free Trade Zone and the center of China's financial industry, and a new testing ground for attracting foreign investment.

 

LIANG QING, DIRECTOR ECON. DEVELOPMENT DEPT. SHFTZ LUJIAZUI ADMIN. BUREAU Currently we host the most registered domestic and international financial institutions in China, over 800. We have specific measures in welcoming international players. For example we have a Lujiazui financial commission, where representatives of firms here can participate in the zone's administration."

 

For foreign financial firms, this is the land of opportunity, as China started to allow wholly-owned foreign asset management firms to set up in the zone since last year. US-based Vanguard, the world's largest mutual fund, entered in mid 2017 and is ambitious to tap into a market with some 80 million high net worth investors.

 

CHARLES LIN COUNTRY HEAD OF CHINA, VANGUARD "We believe in the foreseeable future, the wealth management market will continue to enjoy 15 to 20 percent growth ratio every year."

 

Since China's reform and opening up in 1978, the country has evolved from the home of cheap labor to a vast pool of highly educated talents. Vanguard's offices expect to be filled with local staff in a few months. Throughout the entire process of setting up here, the company has been enjoying supports from the authority every step of the way.

 

CHARLES LIN COUNTRY HEAD OF CHINA, VANGUARD "During our application of having a WFOE in Shanghai office, and also during identifying proper office space and also all the tax arrangements, we can see there's a significant support from the local government, especially the Shanghai Free Trade Zone."

 

YANG CHENGXI SHANGHAI Established in 2013, the Shanghai Free Trade Zone has been the symbol of China's efforts in welcoming foreign investments.

 

Gone are the days when foreign firms come in for the low labor cost, low taxes and other preferential treatments. Even with today's wages rising and competition heating up, China has managed to keep its market attractive by opening up new sectors, simplifying regulations, and making the rules more transparent. The positive business environment is felt across industries.

 

（Nat Sound of Sewing machine, factory noises) These bags belong to French sports company Decathlon. These products go straight from a factory like this to Decathlon's over 220 stores in 90 Chinese cities. Decathlon's many factories in China create substantial employment as 40% of their goods globally are made in China. 14 years after it entered the country, the role of this market for the firm has evolved. China is now the company's major R&D, design, production and logistics center. The company moved its regional headquarters in the free trade zone in 2014.

 

WILLIAM ZHANG GREATER CHINA PRESIDENT, DECATHLON "In China we already have full industry chain to support our business here. So we have a lot of administration work and paper works in financial and legal parts. When we register in FTZ, we can feel the local procedure and registration is very transparent, open and simple."

 

LIANG QING, DIRECTOR ECON. DEVELOPMENT DEPT. SHFTZ LUJIAZUI ADMIN. BUREAU "The zone's previous reforms include things like broadening market entry through a negative list. But what's often overlooked is that we provide continuous national treatments to foreign companies in their daily operations."

 

Decathlon is opening 2000 stores in next 20 years in the country. For many companies in the Free Trade Zone, China represents huge market potential. A positive business environment helps make their rapid expansion steps more solid. YCX CGTN SHANGHAI