Can FTZ lead rest of nation in reform?

The Shanghai FTZ, therefore, could further exacerbate the economic growth gap between East and West China. Implemented on its own with no link to poorer parts of China, this FTZ may well trigger further growth within and around the designated area, but in so doing it may also raise even higher barriers for other parts of mainland China.

While the central government most definitely should be applauded for further trade liberalization, the Shanghai FTZ should also be implemented in tandem with similar initiatives or a zone, that will ring-fence the most impoverished areas of mainland China.

Further, any such free trade zone could be tied to the Shanghai FTZ where investment between zones has some sort of government backing and subsidy.

At present an insubstantial trickle-down effect has taken place from China's special economic zones and coastal provinces. Simply enabling further economic activity across the more developed areas of mainland China, therefore, is highly unlikely to lead to any greater and much-needed trickle-down effect.

It is only with direct and lasting government incentives, probably focused on West China, via some sort of special economic zone in tandem with further trade liberalization initiatives such as the Shanghai FTZ that a more solid and sustainable economic growth path can emerge.

Shanghai FTZ yes, but where is its sister Shaan-Gan-Ning equivalent?

The author is a visiting professor at the University of International Business and Economics in Beijing and a researcher at Nottingham University's School of Contemporary Chinese Studies.