China to Open Door Wider for Foreign Tech Firms
Recently, the greatest news for Chinese market is that a free trade zone will be put in Shanghai. It announced that people in the free-trade zone can search the internet without any limitation and even do tariff-free trades. However, the lawyer, Scott Livingston, at Covington & Burling LLP., said that "Foreign investors should temper their hopes". Because the government has not the details of the free-trade zone‘s operation specification.
As a Chinese, I have read the announcement that the government publish to explain what is the free-trade zone used for. However, as the Chinese government always doing, the announcement provide nothing but some political words. In short, we can get no information from it.
China is a really big market, especially for Internet industry, since some famous website like facebook, Youtube are held back from China. Therefore, the free-zone trade is an access to Chinese market whereas a key to billions of dollars. Microsoft has already approve an joint venture, which invest 237 million dollars, with an inside company for gaming market.
In my opinion, Chinese government is hardly to open the market completely to foreign investors even though it is just a zone. Chinese inside companies have countless operation problems.They have few possibility to win through international competitions. As a result, it supposes to be some policies to limit the free-trade zone. Investors should take a breath and calm down, instead of staring at the great share of market.