Shanghai Pudong New Area's approval process for foreign businesses has shortened to two days, following the government's call to streamline the administrative process and vitalize market forces.

Shanghai's Pudong New Area will halve the approval period to two days for establishment and change of projects backed by foreign capital, the Xinhua News Agency reported on Wednesday.

This will make Pudong, one of the country's earliest reform testing-grounds, the fastest hub to provide market access to multinational companies.

The policy will also beat the record of a minimum four days for a company to receive business licenses in the China (Shanghai) Pilot Free Trade Zone, an initiative to open up the economy and attract foreign investment.