Shanghai has introduced two business regulatory innovations citywide to further digitize enterprise inspection procedures.

The measures aim to realize full inspection traceability while keeping unnecessary visits to compliant businesses to a minimum.

Dual-random inspection QR code

The dual-random inspection QR code serves as a mandatory digital pass for all on-site regulatory inspections.

Every on-site visit must be pre-approved in the system to generate a unique QR code, preventing unauthorized or arbitrary visits.

Inspectors must present the QR code upon arrival. Scanning allows businesses to instantly verify inspector credentials, scope of work, and legal authority in full transparency.

Once completed, businesses scan the code again to rate the inspectors' conduct and submit direct feedback.

Non-intrusive supervision

Non-intrusive supervision is a whitelist-based management framework that is designed to minimize regulatory interference for enterprises with a good credit record.

Businesses with a good credit record are placed on an official list, exempting them from routine proactive on-site checks.

Compliance is verified remotely through online document reviews, digital footprint tracking, big data analytics, and automated verifications.

Whitelist status is updated regularly based on credit standing. Higher credit ratings translate directly to fewer visits.

Source: Shanghai Municipal Administration for Market Regulation