Several Opinions of Shanghai Municipality on Promoting the High-quality Development of the Producer Internet Service Platforms

December 1, 2023

(July 12, 2023)

SMPG GO [2023] No. 12

The producer Internet service platform is a new type of economy in which enterprises provide supporting services for the production and circulation of commodities, with the Internet as the main carrier, data as the key production factor, new generation of information technology as the driving force at the core, and network information infrastructure as the significant support. For the purpose of building Shanghai with new advantages in industrial development with the promotion of the producer Internet service platforms which are aimed to achieve both the integrated development of "secondary and tertiary industries" and the integrated development of digital economy and the real economy, and of creating a well-regulated and orderly environment for the development of producer Internet service platforms, and additionally in the light of the actual circumstances of Shanghai, the following opinions are hereby put forward for promoting the high-quality development of the producer Internet service platform in Shanghai:

I. To enhance development advantages

1. Strengthening trading service platforms for bulk commodities. The platforms for over-the-counter (OTC) derivatives of bulk commodities shall be upgraded by capitalizing on the national financial factor market in order to strengthen the "linkage between the futures and the cash commodities". And the price index for major bulk commodities shall be established with the enhancement of support functions including resource allocation, warehousing and logistics, processing and distribution, and information consultation, as well as improvement of the function of market price discovery. Efforts shall be made to promote the efficient integration and innovative development of bulk commodity production, circulation and supporting services to achieve industrial upgrading and improved efficiency. (Responsible Departments and Units: Shanghai Municipal Commission of Commerce, Shanghai Municipal Financial Regulatory Bureau, Shanghai Securities Regulatory Bureau)

2. Enlarging e-commerce service platforms for industrial products. The e-commerce service platforms for industrial products are encouraged to enhance their capabilities to scale up, aiming to provide professional and integrated supply chain management services to increase their market share. The e-commerce service platforms for industrial product are supported to cooperate with manufacturer companies to carry out professional service outsourcing businesses, aiming to provide comprehensive services for procurement, production, warehousing, distribution, delivery and the other links in manufacturing with lowered production costs and improved efficiency in the supply chain. (Responsible Departments: Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Commission of Commerce)

3. Specializing platforms for digital transformation service. With industrial digital transformation and development of online new economy playing a leading role, and with the promotion of in-depth cooperation between enterprises and software information service providers, efforts shall be made to achieve the integrated development of digital economy and the real economy, and to create new digit-based industrial chain, supply chain and ecology for enterprise development. The digital level of the entire process of production, operation, and management of enterprises shall be elevated with an expansion of the service scope of digital transformation service platforms, aiming to encourage the development of information technology services centered around big data, blockchain, Internet of Things (IoT), artificial intelligence, mobile Internet and the like, and to improve the service of information technology consulting and designing, integrated implementation, operation and maintenance, testing and evaluation, and information security, etc. (Responsible Departments: Shanghai Municipal Commission of Economy and Informatization)

4. Optimizing professional service platforms. Centering around the six key industries – electronic information, life and health, automobiles, high-end equipment, advanced materials, and fashion consumer products, efforts shall be stepped up to accelerate the cultivation of a number of professional service platforms closely associated with each of these six key industries with their value-creating capabilities to be further enhanced. Foreign-invested R&D centers are encouraged to provide third-party services, and professional and public service platforms serving the "going-global" strategy shall be set up in an active manner to promote the development of service outsourcing. Professional service platforms are supported to carry out technological innovation, product innovation, service innovation, management innovation, and market innovation to achieve accelerated and deep integration and inter-dependent coexistence of advanced manufacturing, domestic and foreign trade, and professional services. (Responsible Departments: Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Commerce, Shanghai Municipal Commission of Science and Technology)

II. To improve the development environment

5. Giving full play to the guiding role of policies. Efforts shall be made to increase more support for the producer Internet service platforms by making full and good use of the national funds dedicated for foreign-related trade and economic development, the municipal funds dedicated for high-quality commerce development, the municipal funds dedicated for promoting high-quality industrial development, the funds for guiding development of service industry, and the funds dedicated for projects of high-tech achievement transformation and the like. The headquarters policies shall be fully put in place including careful implementation of policies on funding and rewarding incentives, on fund operation and management, on simplification of entry and exit procedures, and on trade facilitation, etc. Qualified producer Internet service platform enterprises are encouraged and guided to go public in the multi-level capital market. Producer Internet service platforms and upstream and downstream enterprises are supported to participate in the pilot project of "fully digitalized electronic invoices" in Shanghai. Financial institutions are encouraged to develop and innovate Internet- and big data- based financial products and services that meet the financing needs of producer Internet service platform enterprises, to develop supply chain finance in a well-regulated manner, and to provide support for the development of producer Internet service platforms. (Responsible Departments and Units: Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Commission of Science and Technology, Shanghai Municipal Bureau of Finance, Shanghai Municipal Tax Service, Shanghai Municipal Financial Regulatory Bureau, Shanghai Office of China Banking and Insurance Regulatory Commission, Shanghai Securities Regulatory Bureau, Shanghai Head Office of the People's Bank of China)

6. Guaranteeing to meet the demand for land in logistics infrastructure. The spatial planning and layout of Shanghai and the Yangtze River Delta region shall be taken into consideration in the planning of warehousing and logistics, and under the condition of full utilization of the current stock of warehousing infrastructure, the demand for necessary warehousing land of producer Internet service platforms shall be guaranteed to be met so as to promote interdependent and interactive development of logistics and industries. Support is provided for the construction of modern, intelligent, and shared warehousing infrastructure, including policy-based support to regions that undertake the infrastructure construction of important and functional warehousing and logistics. (Responsible Departments: Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Bureau of Planning and Natural Resources)

7. Strengthening the development and application of data resources. The advantages of producer Internet service platforms in terms of its massive data and rich application scenarios shall be fully capitalized on to reinforce capabilities for data integration and resource allocation, so as to accelerate the digital reconstruction of traditional business scenarios for the purpose of promoting real-time interaction of commodity production, circulation and service information, and of achieving smart interconnection between and among upstream and downstream enterprises and professional service enterprises. Protection of data privacy and management of data security shall be strengthened. (Responsible Departments: Shanghai Municipal Commission of Economy and Informatization, Cyberspace Affairs Office of Shanghai Municipal Committee)

8. Accelerating the integration and application of new technologies. The application of blockchain technology on producer Internet service platforms shall be accelerated to improve business authenticity and supervision which aims to improve the overall ecosystem. Efforts shall be made to enrich the pilot application scenarios of the digital Chinese currency (DCEP) to improve efficiency in fund management. Initiatives shall be taken to cultivate enterprises that provide technical support services based on "Foundation Models" in the vertical niche for producer Internet service platforms. (Responsible Departments and Units: Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Science and Technology, Shanghai Municipal Financial Regulatory Bureau, Shanghai Head Office of the People's Bank of China)

9. Encouraging international development. Capitalizing on the China International Import Expo, China International Industry Fair, World Artificial Intelligence Conference and the like, the producer Internet service platforms shall be promoted with overseas promotional activities organized by different industries in different regions. The producer Internet service platforms shall be driven to join hand in hand to "go global" with upstream and downstream enterprises in the industrial chain for the purpose of creating transnational producer Internet service platforms for the integrated development of "secondary and tertiary industries". (Responsible Departments: Shanghai Municipal Commission of Commerce, Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Development and Reform Commission)

10. Strengthening carbon management infrastructure. Producer Internet service platforms are guided to establish a carbon-accounting system that is industry-specific and that has science-based standards and reliable data. Support is provided for the construction of low-carbon supply chain service platform to improve the carbon trading system. A standard-based carbon accounting system for green and low-carbon supply chain shall be established, and producer Internet service platforms are supported to actively participate in the formulation of international standards on carbon emission. (Responsible Departments: Shanghai Municipal Bureau of Ecology and Environment, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Bureau of Statistics, Shanghai Municipal Administration for Market Regulation)

11. Promoting regional integration and cluster development. The creation of new hubs for the clustering and development of producer Internet service platforms shall be promoted in Pudong New Area, Baoshan District, Putuo District, Lin-gang Special Area, Hongqiao International Central Business District and the like. The local governments (administrative committees) shall establish working mechanisms to promote integrated development of "Platforms + Parks" and accelerate the clustering of producer Internet service platforms. (Responsible Departments and Units: Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Economy and Informatization, Shanghai Lin-gang Special Area Administration Committee, Shanghai Hongqiao International Central Business District Administration Committee, Shanghai Pudong New Area Government, Shanghai Baoshan District Government, Shanghai Putuo District Government)

12. Accelerating the training and clustering of multi-level professionals. Relevant enterprises and professional institutions are encouraged to step up efforts in training talents for producer Internet service platforms. Initiatives shall be taken to innovate the talent incentive mechanism for producer Internet service platforms and strengthen the flow and management of international talents to attract and cluster world-class talents for producer Internet service platforms. Support is provided for producer Internet service platforms falling within the scope of key institutions to introduce outstanding talents at home and abroad, whose qualified talents are provided policy-based support and service in their application for residency (hu kou) registration in Shanghai. Capitalizing on the resources of colleges and universities in Shanghai, efforts shall be made for the purpose of customized cultivation of practical talents for producer Internet service platforms through promotion of integration of industries and education, university-enterprise cooperation, and advancement in educational and teaching reforms in majors, courses, and textbooks, etc. (Responsible Departments: Shanghai Municipal Bureau of Human Resources and Social Security, Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Science and Technology, Shanghai Municipal Commission of Education)

III. To elevate the standards for administration

13. Establishing a mechanism for promoting the development of producer Internet service platforms. A coordination mechanism at the municipal level shall be established to strengthen interdepartmental cooperation and join efforts at the municipal and district level, and with a focus on institutional innovation, coordinated efforts shall be made to promote the innovative and sound development of producer Internet service platforms in Shanghai. Additionally, with a focus on cultivating an array of producer Internet service platforms, their scopes and fields will be continuously expanded to gradually form a cultivated system with an echelon of such platforms. Municipal departments in charge of commerce, development and reform, economy and information technology, finance, and science and technology shall take the lead in formulating detailed supportive policies and regulatory measures for the development of producer Internet service platforms in their respective fields. (Responsible Units: all relevant departments and units)

14. Strengthening the construction of standardized platforms. The construction of a standardized system shall be advanced as the underlying work of producer Internet service platforms, for the purpose of which relevant social associations and enterprises are encouraged and guided to formulate local or association standards, to effectively increase standard supply, to reinforce self-discipline management in various industries, and to promote the improvement of relevant industry-specific standards. Producer Internet service platforms in various fields are supported to participate in the pilot standardization at the national and municipal level, aiming to improve the level of standardized service. (Responsible Departments: Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Administration for Market Regulation)

15. Establishing a new credit-based governance mechanism. A tolerant and prudent mechanism for supervision shall be established for producer Internet service platforms. A mechanism for market credit evaluation shall be established and further improved to support producer Internet service platform enterprises to carry out credit evaluation of merchants, upstream and downstream enterprises in residence at the platforms as well as of users, based on which incentives for those with strong credit and punishment for those with poor credit will be offered accordingly to strengthen management of online transaction credit and risks. The role of "management of network via network" shall be given full play to form a supervision system with coordinated efforts so as to intensify in-process supervision and the application of blockchain technology, and to strengthen the prevention of various risks including financial risks at producer Internet service platforms. (Responsible Departments and Units: Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Local Financial Supervision Bureau, Shanghai Securities Regulatory Bureau, Shanghai Municipal Administration for Market Regulation, Shanghai Municipal Tax Service Bureau)

16. Establishing a statistics and monitoring system. A statistical monitoring and data information sharing mechanism for the operation of producer Internet service platforms shall be established, and a statistical monitoring indicator system shall be established and further improved, with the purpose of carrying out statistical analysis reflecting the development characteristics before the release of reports on industry development in a timely manner. (Responsible Departments: Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Bureau of Statistics)