The Shanghai People’s Congress, the municipality’s top legislature, on Thursday adopted the latest amendments to its regulations about solidifying the city’s status as an international trade centre.

The revised regulations, effective from Feb 1, 2024, now consist of nine chapters, including two new ones on trade in services and digital trade.

“Trade in services and digital trade have emerged as pivotal drivers for global trade growth, with an increasingly noticeable trend towards greener and more carbon-efficient trade practices,” said Cui Kai, deputy director of the Legal Affairs Committee of the Shanghai People's Congress Standing Committee.

Cui noted that the recent revision, building upon the version effective since Jan 1, 2013, aligns with international economic and trade rules, notably within the framework of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The primary goal is to bolster corporate confidence in Shanghai.

Consolidating trade in goods

The updated regulations encourage the city to promote intermediary trade and position itself as a crucial distribution hub for imports and exports, streamlining the flow of goods.

Moreover, the initiative includes a trial improvement of offshore trading through free trade accounts, encouraging commercial banks to explore innovative methods for verifying the authenticity of offshore transactions.

In addition, it aims to stimulate cross-border e-commerce growth, advocating for the creation of a comprehensive experimental zone and supporting the construction of an extensive service platform for overseas warehouses.

Innovating trade in services

A key amendment introduces a dedicated chapter for trade in services. The city plans to introduce a negative list for cross-border trade in services, ensuring equal treatment for industries, sectors and businesses not listed.

Furthermore, there will be a concerted effort to embrace advanced technology, diversifying the sources for technology imports.

The initiative also involves the expansion of exports in cultural products and services, covering movies, TV programs, sports events and publications. To enhance its tourism offerings, the city will enrich its supply of tourism products and improve the network for promoting them to overseas tourists.

Additionally, the amendments call upon the Pudong New Area, the China (Shanghai) Pilot Free Trade Zone and the Lin-gang Special Area to compile a list of professional services that encourage the involvement of overseas professionals, allowing eligible individuals to provide their expertise. 

Fostering digital trade

To catalyze the advancement of trade in digital products, services and technologies, digital trade now stands as a distinct chapter in the revised regulation.

The amendments advocate for the establishment of pilot zones for Silk Road e-commerce cooperation, accelerating the development of digital trade ports in Lin-gang and Hongqiao, and actively supporting the creation of the international board of the Shanghai Data Exchange.

In addressing data security, the revised regulations emphasize the need for categorized and tiered management of cross-border data flow. Furthermore, it encourages the widespread application of digital identity certification within the realm of digital trade. The regulations also stress the importance of coordinated efforts in the protection of personal information and the outbound flow of key data.

Improving trade facilitation

The new regulations aim to bolster the competitiveness of trade companies by facilitating trade. This includes expediting the construction of digital infrastructure at entry ports and promoting foreign exchange reform to facilitate more convenient cross-border payments.

Additionally, the regulation supports the development of infrastructure associated with cross-border electronic invoices, with the goal of promoting the widespread use of electronic invoices in international trade.