[View of a sign of the China (Shanghai) Pilot Free Trade Zone in Pudong, Shanghai, China, 22 December 2014. [Photo: Imagine China]]

The Chinese government has approved the creation of 3 new free trade zones in the provinces of Guangdong and Fujian, as well as the city of Tianjin.

The central authorities say the new zones are going to be based on the same model as Shanghai Free Trade Zone. 

The Shanghai Free Trade Zone, launched in 2013, has been set up as a testing ground for the reforms meant to try to liberalize the regulations governing finance, investment and trade.

Chinese authorities say the new zones will have institutional innovation, with their own "local characteristics".

The Guangdong FTZ has been shaped to try to help develop cooperation among Guangdong, Hong Kong and Macao.

Zheng Jiarong is the deputy head of Department of Commerce of Guangdong.

"We're going to focus on pioneering new legal systems based on the opening-up policy. We will to try to set up frameworks to help us better collaborate with Hong Kong and Macao in areas such as international mediation and international dispute settlement in the the free trade zone."

The opening of the Guangdong Free Trade Zone should allow companies to borrow Renminbi directly from Hong Kong banks.

The Free Trade Zone is also going to allow companies working in it to invest through their overseas branches under a program called "inter-company loans".

Fujian's Free Trade Zone is going to be focused on Taiwan.

Li Guanghui with the Chinese Academy of International Trade and Economic Cooperation says the current model being implemented in Shanghai is going to be used as the blue-print for the new FTZ's.

"The current Free Trade Areas of China have limitations. But the Free Trade ZONES can provide experiences for the further development of Free Trade Areas. The negative list and supervision system can serve as pilot programs for FTA."

A survey of more than 370 members of the American Chamber of Commerce shows around a quarter of the companies asked say they've already established a presence in the Shanghai FTZ, or have plans to do so.