China launched its free trade zone (FTZ) in Shanghai on Sunday (September 29th).

It is hoped creating such a zone will encourage foreign investors and business in the city, which is already a dominant port in the global shipping industry.

The designated FTZ is a 29 sq km region in the eastern suburbs.

Part of the financial reforms introduced in this area will allow businesses to freely swap to and from the Chinese yuan. Shipping and cargo industries with an active interest in the country could use this to their benefit - with the added business further improving Shanghai's position.

It also includes a three-year suspension on the majority of legal restrictions put upon foreign investment, allowing companies to trade on a similar level to domestic investors. Similarly, the restrictions regarding foreign ownership are being removed entirely and entry barriers will be reduced for service industries such as shipping.