BEIJING -- China's legislature on Friday gave the green light to the State Council, or the Cabinet, to modify the implementation of laws related to foreign enterprises at a pilot free trade zone in Shanghai.

As authorized by the National People's Congress (NPC) Standing Committee, the State Council will suspend administrative approvals regulated in three laws, covering foreign-capital enterprises, Chinese-foreign equity joint ventures and Chinese-foreign contractual joint ventures.

The move is aimed at stepping up the transformation of governmental functions and innovate the mode of opening-up, according to the decision, which will be effective on Oct 1.

If the trial operation of suspension, scheduled to be three years, proves applicable, the laws will be amended and improved. Otherwise, the laws will resume.

The State Council approved the pilot free trade zone in Shanghai on July 3. In the trial zone, goods can be imported, processed and re-exported without the intervention of customs authorities.

The Shanghai FTZ will be the first such zone on the Chinese mainland. It will take about three years to build to meet international standards.

The zone is expected to help Shanghai to cut costs of trade, improve efficiency and promote financial services.