Workers set the sign of the free trade zone (FTZ) in Shanghai, east China, Sept. 26, 2013. China will officially launch the pilot FTZ in Shanghai on Sept. 29, taking a solid step forward to boost reforms in the world's second-largest economy. Covering almost 29 square kilometers, the zone will be created modeled on existing free trade businesses in the country's economic hub. [Photo/Xinhua]

BEIJING - China's cabinet on Friday approved a detailed plan allowing foreign companies to invest in more service sectors in the Shanghai Free Trade Zone (FTZ).

Shanghai FTZ, which will be formally launched on Sunday, will be a test bed for liberalization of financial markets, with China at a critical stage of transforming its pattern of growth.

Foreign companies will be permitted to conduct "a portion of specific types of telecommunications value-added business on condition of ensuring information security.

"Businesses which will breach China's administrative rules should first gain permission from the State Council," read the guideline, which was made public on Friday.

This means foreign companies in the zone can establish call centers, provide Internet information and  software technology services.

They are also allowed to produce and sell video game gadgets in China if the content passes censorship. Entertainment agencies will be allowed, for the first time, to solely provide performance brokerage in Shanghai. Foreign travel agencies in the FTZ can organize overseas trips anywhere except Taiwan.

Foreign companies can partner up with Chinese enterprises on education and vocational training, provide health care insurance services and establish independent medical institutions.

In the FTZ, goods can be imported, processed and re-exported without the intervention of customs authorities.

Foreign investors will be given easier access and greater openness and flexibility.

Covering almost 29 square kilometers, the zone will be modeled on existing free trade businesses -- Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone.