Issue 40

Shanghai Weekly Bulletin

No. 3, April 2024

Shanghai Weekly Bulletin is an information service presented by the Foreign Affairs Office of Shanghai Municipal People's Government in collaboration with Wolters Kluwer to foreign-funded enterprises, foreign-related institutions as well as people from overseas living in Shanghai. Covering major national and Shanghai foreign-related news, event information, policy Q&A and interpretations in the past week, it keeps you up-to-date with the latest foreign-related policies and developments in Shanghai.

Laws and Regulations

【National】

1. China Takes Measures to Streamline Trade-related Foreign Exchange Business Processes

【Keyword: Trade-related Foreign Exchange Business】

The State Administration of Foreign Exchange (SAFE) recently issued the Circular of the State Administration of Foreign Exchange on Further Improving the Administration of Trade-related Foreign Exchange Business, which will take effect on June 1, 2024. The document introduces six policy measures, including optimizing the registration of foreign trade enterprises on the "directory of enterprises with foreign exchange receipts and payments for trade", streamlining the trade receipts and payments settlement procedures for enterprises within special customs supervision areas, relaxing the authority for waiving the registration process for special refunds of foreign exchanges for trade in goods, and improving foreign exchange business processes for trade by Type B and Type C enterprises.

Source: SAFE

2. China to Lift Foreign Ownership Limit in Value-added Telecom Services in Pilot Areas

【Keyword: Value-added Telecom Services】

The Ministry of Industry and Information Technology (MIIT) recently released the Circular on the Opening-up of Value-Added Telecom Services, stating that the pilot work will be first carried out in areas including Beijing's national comprehensive demonstration zone for expanding opening-up in the service sector, the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone and the pioneer area for socialist modernization in Shanghai, Hainan Free Trade Port, and Shenzhen's pilot demonstration area of socialism with Chinese characteristics. 

Source: MIIT

【Shanghai】 

1. Shanghai Plans to Improve the Capacity of Trading Areas 

【Keyword: Trading Areas】

Shanghai Municipal Commission of Commerce and other six departments in Shanghai issued on April 7, 2024 the Three-year Action Plan on Improving the Capacity of Trading Areas in Shanghai (2024-2026). The document introduces 16 measures in four aspects, including planning and landscaping, business formats and models, consumption environment, and management mechanisms. It proposes three safeguard measures to improve the capacity of trading areas in Shanghai, accelerate the development of an international consumption center city, and make every effort to promote the "Shanghai Shopping" brand. 

Source: Shanghai Municipal Commission of Commerce

One Week in Shanghai

【Latest News】 

1. Shanghai-Yokohama Friendly Exchange Agreement (2024-2028) Signed

【Keywords: Yokohama; Friendly Exchange】

Shanghai and Yokohama, Japan signed the Shanghai-Yokohama Friendly Exchange Agreement (2024-2028) on April 11, 2024. 

Source: Shanghai Release

2.Lin-gang Special Area Cross-border Data Service Center Put into Operation

【Keyword: Cross-border Data Service Center】

The opening ceremony of the Lin-gang Special Area Cross-border Data Flow Innovation Service Salon and Cross-border Data Service Center was held on April 7, 2024. The service center is committed to providing data processors with all-round, full-process cross-border data services, including document acceptance and business consulting. It also aims to create a "green channel" for cross-border data flow in the free trade zone.

Source: Shanghai Lingang

【Forum & Exhibition】 

1. 3rd Yangtze River Delta International Emergency Disaster Reduction & Rescue Expo to Be Held

【Keyword: International Emergency Disaster Reduction & Rescue Expo】

The 3rd Yangtze River Delta International Emergency Disaster Reduction & Rescue Expo, with the theme "Promoting High-level Safety and Protecting High-quality Development", will be held at the National Exhibition and Convention Center (Shanghai) from May 13 to 15. About 500 Chinese and foreign exhibitors will participate in the expo. 

Source:Shanghai Release

2. 5th 5-5 Shanghai Shopping Festival and "Summer of Shanghai" International Consumption Season to Kick off 

【Keywords: 5-5 Shanghai Shopping Festival; "Summer of Shanghai" International Consumption Season】

The 5th 5-5 Shanghai Shopping Festival will last from late April to the end of June and will target first-launch products, brand economy, nighttime activities, and livestreaming sales, as well as four areas of spending including new consumption, service consumption, automobile consumption, and green consumption. About 1,000 special sales activities have been planned during the shopping festival. After that, the "Summer of Shanghai" International Consumption Season will kick off from the first weekend of July until the second weekend of October. During the three-month period, a total of 65 high-quality and high-capacity events will be held, including concerts, music festivals, cultural performances, art exhibitions and sports games. 

Source: Shanghai Release

【Culture & Art】

1. 29th Shanghai TV Festival to Be Held on June 24-28

【Keyword: Shanghai TV Festival】

The 29th Shanghai TV Festival is set to be held on June 24-28, 2024. Along with the Magnolia Awards for TV Programs, which are hailed as a barometer of China's television industry, the five-day event will encompass the Opening Ceremony, STVF Market, STVFORUM, International TV Showcase, and the "Magnolia" Awards Ceremony. 

Source: Shanghai Release

2. 2024 Pudong Festival of Culture & Art to Open on April 18

【Keyword: Pudong Festival of Culture & Art】

The 13th Pudong Festival of Culture & Art will be held from April 18 to July 31. The festival will launch ten sections and about 1,000 cultural activities, including high-quality theater plays, festive Pudong, earthly fireworks, intangible cultural heritage, poetry and art of Jiangnan, and deep love for mountains and seas. The festival will create amicable festive atmosphere with tens of thousands of people in the theaters or event venues and millions of people watching live shows at home.

Source:Pudong Release

3. Peking-Kun New Opera "Caesar" to Be Staged at Modern Drama Valley

【Keywords: Peking-Kun New Opera; Caesar】

The Jingkun new opera "Caesar" will be premiered in China at the Fancl Art Center on April 26-28, 2024. "Caesar" is adapted from Shakespeare's classic historical tragedy "Julius Caesar". It not only highlights a collision of Chinese and western cultures, but also the fusion of two traditional operas - Peking Opera and Kun Opera - on the same stage.

Source: Shanghai Tourism

【Corporate Activities】

1. Several Foreign Investment Projects to Be Settled in Fengxian 

【Keywords: Foreign Investment Projects; Signing Together】

Nine foreign investment projects were signed together in Fengxian, Shanghai on April 9, 2024. Among them are Halla Group's new energy vehicle tire assembly plant, Aden Automobile Industrial Park, Glico's capital increase and factory expansion, and KDC Group-Shanghai Paristi cosmetics R&D base. 

Source: Shanghai Fengxian

【Training】

1. Training on Filling the 2024 Foreign Investment Information Report 

【Keywords: Foreign Investment Information Report; Annual Report】

In order to help foreign-invested enterprises better understand the filling process, compliance requirements and facilitation measures for the Annual Report of 2024 Foreign Investment Information Report, the Shanghai Foreign Investment Association will hold a training session on April 23, 2024.

Source: Shanghai Foreign Investment Association

Q&A

Q1: An official of the Ministry of Industry and Information Technology (MIIT) Answers a reporter's question related to the Circular on the Opening-up of Value-Added Telecom Services - What the MIIT has done in promoting opening-up of the telecom market, and what results have been achieved?

A1: The MIIT has been implementing the decisions and arrangements of the CPC Central Committee and the State Council, and promoting high-quality development of the telecom industry through high-level openness. The first is to improve the level of opening up in the telecom market. eight out of 10 value-added telecom services in the free trade zone were open to foreign investors, and six businesses have no foreign shareholding restrictions, and restrictions on foreign shareholding ratios were removed nationwide for many businesses. The second is to continue to improve business environment in the telecom market. We have optimized the approval process for foreign investment in the telecom market, merge the approval process for foreign investment access with the telecommunications business license review process, and change the license review and approval process for some value-added telecom services in the free trade zone to a notification and commitment system, effectively making it easier for foreign investors to get access to the telecoms market in China. 

After years of explorations and practices, China's telecom industry has continued to deepen opening-up to the outside world, industrial development has continued to advance, institutional systems have seen accelerated improvement, regulatory experience has been enriched, and safeguarding measures have been gradually improved. Firstly, the foundation for industrial development continues to be solidified. By introducing high-quality foreign-funded telecom companies to operate in China, we have brought ample supply of products and services to consumers, spurred the innovation vitality of domestic enterprises, improved industry services and international competitiveness, and injected fresh momentum to drive high-quality development of the telecom industry. Secondly, regulatory policies and regulations will continue to improve. The Data Security Law, the Cybersecurity Law, and the Law on Combating Telecom and Online Fraud have come into force, and supporting regulations have been in place to enhance open regulatory capabilities. The regulatory system in the telecom market continues to improve. Since the revision of the Provisions on the Administration of Foreign-Funded Telecom Enterprises in 2022, the entry threshold for foreign investment has been further lowered and the management requirements for foreign investment have been further optimized. Thirdly, management experience has been continuously enriched. The effective implementation of credit management system, random inspections, and public disclosure of inspection results and annual reports have guaranteed the orderly and standardized operation of the telecom market and provided sound business environment for the operation and development of foreign-funded telecom enterprises. Fourthly, safety assurance capabilities have been effectively improved. We will advance the construction of network and data security systems and capabilities, improve data classification and hierarchical management rules and standards, and strengthen the protection of personal information and user rights.

Source: MIIT

Expert Perspective

Several Issues to Be Watched and Addressed by Foreign Businesses under New Company Law

By: He Kan, Chen Leyi, Gao Fangjiao, Liu Zijing, Yang Yanhua (Junhe Law Firm)

[Continuing from the Last Issue]

Q8: Strengthening the criminal liability of directors, supervisors and senior executives

In addition to the New Company Law, the Amendment (XII) to the Criminal Law, which took effect on March 1, 2024, is also grabbing a lot of attention. It for the first time expands the scope of three economic crimes of "illegal operation of similar businesses", "illegal profit-making for relatives and friends", and "engaging in fraudulent activities to sell state-owned assets at lower prices" from internal staff of state-owned companies and enterprises to directors, supervisors, senior managers/directly responsible supervisors of all companies and enterprises. If a director/supervisor/executive breaches his duty and causes heavy losses to the company, he may be sentenced to three to seven years in prison plus a fine. The new law amendment provides foreign-funded companies with a powerful weapon to crack down on executives who seriously infringe the company's interests. It also embodies the spirit of equal protection for state-owned enterprises and non-state-owned enterprises.