The set-up of the FTZ was cleared in early July - but rules to implement the legal infrastructure have been delayed as government lawyers have tried to cut out potential loopholes. Kenneth Leung, tax and business advisory partner in EY, told China Daily: 'There are many special areas in China, each with different functions and favorable policies. All these measures can be copied for the Shanghai FTZ.' He believes that VAT might also be cut out in the FTZ. 'This will create a miniature Hong Kong,' he added. 

A lawyer for a foreign law firm told the newspaper that setting up joint ventures on the Chinese mainland usually takes between two and four months, while it can take just a week in Hong Kong.