Free trade zone opens in China

Shanghai's free trade zone opens

As the Chinese are abandoning socialism is favor of capitalism, the American politicians are adopting socialism and abandoning capitalism.

Goodbye Communism and poverty.  Hello capitalism and wealth.

Operations formally kicked off Sunday at a new free trade zone in Shanghai that China's government has billed as a major step for financial reforms and economic experimentation, but significant changes look to be years away.
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State media reported that a first batch of 25 Chinese and foreign companies were granted licenses to register in the zone.

The China (Shanghai) Pilot Free Trade Zone is a nearly 29-square-kilometer (11-square-mile) district that covers four existing special trade zones in Pudong district, including one at the airport reports CNBC News.

China's State Council formally announced rules for the new free trade zone on Friday. They include measures to cut red tape and restrictions for foreign investment in the country's tightly controlled service industry.

There are also plans to experiment with convertibility of China's tightly controlled currency, the yuan, and let market forces rather than regulators set interest rates.

The zone is aimed at serving as a laboratory for such financial experiments before they are rolled out elsewhere in China.

At a ceremony marking its opening, Commerce Minister Gao Hucheng said the government hoped the zone would act as "an experimental field to conduct economic reform" and promote economic development nationwide.

The zone is aimed at serving as a laboratory for such financial experiments before they are rolled out elsewhere in China.

At a ceremony marking its opening, Commerce Minister Gao Hucheng said the government hoped the zone would act as "an experimental field to conduct economic reform" and promote economic development nationwide.


China Tests New Free Trade Zone in Shanghai

Business, hard work, jobs and wealth - What a concept.

Chinese Consumer Culture

Luxury retailers know a gold mine when they see one. Just ten years ago mainland buyers accounted for 1% of global sales of luxury handbags, shoes, jewelry, perfume, and the like. Today the Chinese are the third-biggest high-end buyers on Earth, with more than 12% of world sales, Goldman Sachs reckons. Within a decade, China will likely leapfrog Japan and the U.S. to become the top luxury market.

"China is experiencing huge wealth creation, and there is lots of conspicuous consumption related to that," says Goldman analyst Jacques-Franck Dossin. "People want to show they are successful." One way of doing that, of course, is with a pricey Cartier wristwatch from this Shanghai store.