China has halted free trade area (FTA) applications by local governments, Outlook Weekly reported Tuesday, citing sources.
More than 20 local governments are planning to apply for FTA status in order to enjoy preferential policies on land allocation, taxation and property development.
Conditions are not ripe for an expanded scheme, with China’s first free trade zone (FTZ) in Shanghai still in a trial phase, Huo Jianguo, director of the commerce ministry’s international trade and economic research institute, was quoted as saying.
The Shanghai FTZ, which was opened last year, is a testing ground for financial innovation and economic reform.
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