China (Shanghai) Pilot Free Trade Zone, inaugurated in September 2013, serves as an ideal site for companies that want to expand overseas due to the zone's preferential policies. [Photo/IC]

Shanghai's capacity to help local companies expand overseas has been improved thanks to its free trade zone (FTZ) and the Belt and Road Initiative, Shanghai government announced on April 12 at a news briefing.

Shanghai enterprises currently operate in or have connections with 178 countries and regions with economic partnerships forged across 14 countries and regions along the Belt and Road including Singapore and Turkey. According to recent figures, 70 percent of the city's investment overseas is the result of China (Shanghai) Pilot Free Trade Zone.

This success is accredited to the launch of a simplified outbound investment approval system in the FTZ and a range of financial supportive measures that have been offered to companies investing overseas. These initiatives have helped to enhance the global competitiveness of Chinese companies.

The State Council published a plan on March 30 which called for a further opening up of the Shanghai FTZ.

Previous measures include simplifying outbound investment cooperation and management systems, improving outbound investment public services, strengthening the outbound investment supervision system. These efforts will be furthered in order to better serve the city's goals.

China (Shanghai) Pilot Free Trade Zone, inaugurated in September 2013, aims to become a driving force for China's reform and opening up. In April 2015, the FTZ expanded from 28 square kilometers to 120 square kilometers to better fulfill its mission, incorporating three more areas: Lujiazui Financial and Trade Zone, Jinqiao Development Zone, and Zhangjiang High Tech Park.