Shanghai issues new guidelines as manufacturing sector opens fully to foreign investment

english.shanghai.gov.cn| October 31, 2024

The National Development and Reform Commission and the Ministry of Commerce on Sept 8 jointly issued the 2024 version of the negative list for foreign investment access – removing all restrictions on foreign investment in the manufacturing sector.

Effective from Nov 1, the updated list eliminates the final two restrictions in manufacturing: 

1. Chinese entities were required to hold a controlling interest in the printing of publications.

2. Foreign investment was prohibited in the application of certain processing techniques – such as steaming, frying, roasting and calcination of Chinese herbal slices – and in the production of confidential formulations for traditional Chinese patent medicines. 

To support the implementation of the 2024 negative list, Shanghai has formulated guidelines to facilitate compliance with these updated policies.

Removed restriction: Chinese entities previously required to hold a controlling interest in publications printing. 

1. Regarding the registration process for foreign-invested enterprises

Foreign-invested enterprises involved in publications printing must complete business operator registration in accordance with relevant regulations.

The registration process: Complete registration via the "Shanghai Online Business Registration" platform of the Government Online-Offline Shanghai at https://yct.sh.gov.cn/portal_yct/.

Policy consultation: Shanghai Municipal Administration for Market Regulation at 021-6422-0000 Ext 5475

2. Regarding the filing of foreign-invested projects

Foreign-invested projects investing in printing publications – including new constructions or mergers and acquisitions – must be filed in compliance with relevant regulations.

The filing process: Submit filings through the Government Online-Offline Shanghai at https://zwdt.sh.gov.cn/govPortals/bsfw/item/86abcc6e-3b4b-4a74-84d3-e47fa2b5b4ba.

Policy consultation: Shanghai Municipal Development and Reform Commission at 021-6359-6761

3. Regarding the approval and issuance of the "foreign-invested printing business permit" and the "printing business permit for printing publications"

Applying enterprises must meet the approval requirements for both the "foreign-invested printing business permit" and the "printing business permit for printing publications".

The application process: Apply for the permit through the Government Online-Offline Shanghai at https://zwdt.sh.gov.cn/govPortals/bsfw/item/14d042e7-a200-4686-a3d3-be83a6fc19b5.

Policy consultation: Shanghai Municipal Bureau of Press and Publication at 021-6437-0176 Ext 8401

Removed restrictions: Foreign investment was previously prohibited in the application of certain processing techniques – such as steaming, frying, roasting and calcination of Chinese herbal slices – and in the production of confidential formulations for traditional Chinese patent medicines.

1. Regarding the registration process for foreign-invested enterprises

Foreign-invested enterprises involved in the application of processing techniques – such as steaming, frying, roasting and calcination of Chinese herbal slices – and in the production of confidential formulations for traditional Chinese patent medicines must complete business operator registration in accordance with relevant regulations.

The registration process: Complete registration through the "Shanghai Online Business Registration" platform of the Government Online-Offline Shanghai at https://yct.sh.gov.cn/portal_yct/.

Policy consultation: Shanghai Municipal Administration for Market Regulation at 021-6422-0000 Ext 5475

2. Regarding the filing of foreign-invested projects

Foreign-invested projects (including new constructions or mergers and acquisitions) investing in the application of processing techniques – such as steaming, frying, roasting and calcination of Chinese herbal slices – and in the production of confidential formulations for traditional Chinese patent medicines must be filed according to relevant regulations.

The filing process: Submit filings through the Government Online-Offline Shanghai at https://zwdt.sh.gov.cn/govPortals/bsfw/item/86abcc6e-3b4b-4a74-84d3-e47fa2b5b4ba.

Policy consultation: Shanghai Municipal Development and Reform Commission at 021-6359-6761

3. Regarding the licensing of pharmaceutical manufacturing enterprises

Enterprises involved in pharmaceutical manufacturing activities must report to the drug supervision and administration authorities of the provinces, autonomous regions, or municipalities where they are located to obtain approval for the pharmaceutical manufacturing permit.

The application process: Enterprises can apply for the permit through the Government Online-Offline Shanghai at https://zwdt.sh.gov.cn/govPortals/bsfw/item/9b3eebfd-cdfe-4bd9-98fb-81b70eb2a378.

Policy consultation: Shanghai Municipal Drug Administration at 021-6326-9368 

 

Source: Shanghai Municipal Development and Reform Commission