China's government work report, which was delivered at the opening meeting of the third session of the 14th National People's Congress on March 5, stated that support will be given to major economically-developed provincial-level regions so that they can play a leading role in supporting the sustained recovery and improvement of the national economy.

As one of China's major economic hubs, Shanghai is at the forefront of efforts to boost the country's high-quality economic growth.

Expanding opening-up

Government work report: "No matter how the external environment changes, China will always remain unwavering in its commitment to opening-up."

Shanghai in action:

Last year, the State Council approved the plan to build Shanghai Eastern Hub International Business Cooperation Zone. The zone will allow foreign visitors to stay for up to 30 days upon arrival from the Pudong International Airport without having to verify their visas. The move is intended to facilitate business exchanges, catering to the needs of short-term international business activities.

Attracting foreign investment

Government work report: "Strengthen service guarantees for foreign enterprises and accelerate the implementation of landmark projects."

Shanghai in action:

In February, Toyota established a wholly-owned subsidiary in Shanghai to produce batteries and fully electric vehicles for its high-end Lexus brand. The new facility is set to begin production in 2027.

The new Lexus plant will be the second wholly owned automotive facility in China after Tesla's Shanghai Gigafactory.

Accelerating the construction of free trade zone

Government work report: "Improve the quality and efficiency of pilot free trade zones and expand the authorization for reform tasks."

Shanghai in action:

Last year, the country's first cross-border data service center was launched in the Lin-gang Special Area, creating a green channel for cross-border data flow. A trial version of the data export negative list in the Shanghai FTZ and the Lin-gang Special Area was released earlier this year.

This year, Shanghai will accelerate the development of the Shanghai FTZ and the Lin-gang Special Area, as well as build the second batch of innovation zones linked to the Shanghai FTZ.

Shanghai has also opened its doors wider to foreign investors in areas such as telecommunications and healthcare.

Recently, 13 foreign-invested enterprises received the greenlight to launch pilot operations in value-added telecom business in China, four of which are registered in Shanghai. In addition, the first wholly foreign-owned hospital will be unveiled in Shanghai in the near future.

Developing new quality productive forces

Government work report: "Develop new quality productive forces in light of local conditions and accelerate the construction of a modern industrial system."

Shanghai in action:

In the field of embodied intelligence, Shanghai-based Agibot has launched the world's first fully open-source robot, Lingxi X1, as a complete assembly kit. Empowered by AI technologies such as visual multimodal large models, the robot possesses embodied intelligence that enables it to "see, hear, and understand" the world.

 

Improving business environment

Government work report: "Rectify arbitrary charges, fines, inspections, and seizures, and resolutely prevent illegal cross-regional law enforcement and profit-driven enforcement."

Shanghai in action:

Shanghai issued the eighth edition of its action plan to optimize business environment in February.

The action plan introduced the "inspection code". When conducting on-site inspections at enterprises, law enforcement officers must present the "inspection code" to the company, which includes details of the inspection tasks as well as information about the officers. This measure aims to prevent arbitrary and illegal inspections, thereby avoiding unnecessary disruptions to businesses.

Boosting consumption

Government work report: "Vigorously boost consumption and investment return and stimulate domestic demand across the board."

Shanghai in action:

This year, Shanghai plans to allocate 500 million yuan ($69 million) in municipal fiscal funds toward consumption vouchers in the dining, tourism, film, and sports sectors. Additionally, efforts will be made to host high-profile performances, sporting events, and exhibitions.

 

Increasing the incomes of residents

Government work report: "Increase residents' incomes through multiple channels...better protect the rights and interests of workers in flexible employment and in new forms of employment, and expand the pilot programs for occupational injury protection."

Shanghai in action:

The per capita disposable income of Shanghai residents reached 88,000 yuan in 2024, a year-on-year increase of 4.2 percent. Shanghai is also one of the first seven provincial-level regions in the country to initiate pilot programs for occupational injury protection for workers in new forms of employment.

 

Source: Shanghai Observer