(Yicai) Dec. 8 -- China will support the Shanghai Free Trade Zone in taking the lead in implementing new measures to facilitate the flow of cross-border data.

The Shanghai FTZ will introduce high-standard digital trade rules, formulate important data catalogs, and explore a legal, safe, and convenient cross-border data flow mechanism, according to a plan for advancing institutional opening-up of the China (Shanghai) Pilot FTZ, in line with high-standard international economic and trade rules issued by the State Council yesterday.

The plan will allow businesses and individuals to provide data in compliance with national security management requirements for cross-border data transfer overseas, and financial institutions to transfer data necessary for daily operations abroad.

Moreover, the plan explores the application of the digital Chinese yuan in trade, supports the introduction of overseas electronic payment institutions, encourages financial institutions and payment service providers to introduce international standards for electronic payment systems, and carries out cross-border authentication and electronic identification of digital identities.

The plan lists 80 measures in seven aspects, making a direct response and clear arrangement for the core content of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement, said Zhang Yong, deputy dean of the Shanghai Advanced Institute of Finance at Shanghai Jiaotong University.

"China is applying to join the CPTPP and DEPA, whose core clauses include digital product treatment, digital identity, digital inclusion, data flow, and digital economy," noted Zhang, who is also the deputy director of the Shanghai Institute for Finance and Development.

The measures break through the strict restrictions on cross-border data flow in the financial field, providing a new tool for settling trade in goods and services in Chinese yuan worth about CNY5 billion (USD700.3 million) per year.

The plan also puts forward 15 measures to improve the liberalization and facilitation of goods trade, making it clear that transit goods shipped overseas via the Yangshan Special Comprehensive Bonded Zone will not be inspected, and that the clearance and quarantine process of imported goods to China will be simplified. This will help the Shanghai Port increase the proportion of international transit and reduce global traders' time, financial, and compliance costs.

In addition, the plan supports the credible, safe, and responsible use of artificial intelligence.

Editor: Futura Costaglione