Shanghai and the other applicants must be ready for the tough challenges that a free trade area brings, said an article in China Business News (excerpts below).

After Shanghai was chosen as a pilot zone for the national free trade area, Guangzhou, Zhuhai, Shenzhen, Xiamen, Zhoshan, Chongqing and Tianjin expressed an interest in establishing FTA zones.

Shanghai and the other city governments should know that becoming a FTA pilot zone does not only mean more preferential policies in tax and land from the central authority, but also means carrying out tough tasks to help the country explore the path of future reform.

Shanghai's zone is comparable to the establishment of the special economic zone of Shenzhen in terms of its pertinence to reform.

But the pilot zone faces more challenges than the Shenzhen pilot.

Shanghai should take the lead in reform the government-dominated financial sector.

How to attract expertise, stimulate creativity and protect intellectual property rights are challenges that Shanghai must tackle.