The Economist (5 October 2013) tagline opines that "a new enterprise zone could spark wider market reforms—but only if bureaucrats ease their grip". Click here

The initial announcement refers to a negative list of 1000 banned areas, which begs the question how free is the SFTZ. In balance, the article rightly quotes Chen Bo of the Shanghai
University of Finance and Economics, who has advised the government on
the SFTZ. ""Do not be fooled by the earky caution". However, even much more liberalization is to comne, this negative list means that the pilot Shanghai Free Trade Zone is not supposed to be another Shenzhen.

It is in reality a carefully-control experiment of epic proportions. No less important reforms than China's currency regime and the rapidly rising services sector are at stake, along with the political commitment and reputation of China's new Premier.

I should add, "Don't be fooled by the lack of absolute clarity or details". This is what an experiment is really about. If something works, then more will be tried. But if it dosn't, other ways will be examined. 

Specifically, the pilot is given a three-year timeline, before a decision is taken to roll out a final package nationwide. This underlines the political and strategic urgency. 

Specifically, in the light of global uncertainties and opportunities facing China and at a critical time of China's transformation into a service-oriented economy, the SFTZ is a palpable move to see how various targetted service areas can be liberalized and how the eventual full convertibility of the RMB can be speeded up so that it can play a significant role as one of the world's leading reserve currencies, possibly by 2020, as oultined in my recent Op-ed in the South China Morning Post here

Watch this space.