The general offices of the Central Committee of the Communist Party of China and the State Council, China's Cabinet, released on Jan 22 an implementation plan for Pudong New Area's pilot comprehensive reform for 2023-2027.

Depicting the development path for Pudong in the next five years, the plan states the area will be provided with more autonomy in key areas and scenarios. It comprises 23 detailed measures.

Here are highlights from the plan:

Goals

By the conclusion of the 14th Five-Year Plan period (2021-25), Pudong will have achieved pivotal milestones in institutional innovation, marking significant breakthroughs in the realm of high-level institutional openness. The competitiveness of its science and technology innovation system will have seen substantial enhancement, paralleled by a marked increase in its capability for global resource allocation. Urban governance standards will have notably advanced, with several flagship reform outcomes being broadly implemented.

Looking ahead to 2027, Pudong is set to effectively fulfill its pilot initiatives, achieving groundbreaking strides in institutional innovation. This period will witness significant strides towards establishing a high-standard market system and a new regime of a high-level open economy. The urban governance framework will emerge more robust and comprehensive, serving as a crucial model and driving force in the nation's journey towards the comprehensive establishment of a modern socialist country.

Institutional openness

1. Market rules

Build upon the nationwide unified negative list for market access, and formulate and implement special measures to relax market access in Pudong New Area.

Explore the relaxation of foreign access restrictions in consumer service sectors such as telecommunications and healthcare.

Enhance the linkage mechanism between negative lists for foreign investment access and market access.

Explore the establishment of a system of digital economy rules. Implement a new data trading mechanism that classifies data into distinct categories and levels, and fosters the credible circulation of data through reliance on data exchanges.

Delve into property rights mechanisms for the segregation of data resource ownership, data processing and usage rights, and data product operation rights.

Facilitate the opening of public data to business entities.

Optimize mechanisms for resolving foreign-related commercial disputes. Explore the possibility of allowing parties involved in foreign-related commercial disputes registered in Pudong New Area to autonomously agree to apply specific arbitration rules within the region, with designated arbitrators handling disputes.

Encourage commercial mediation organizations to mediate foreign-related commercial disputes and explore the establishment of a commercial mediation system with Chinese characteristics that align with international standards.

Deepen the reform of the inspection, testing, and certification system and foster mutual recognition of Chinese and foreign standards.

Encourage the active participation of foreign-invested enterprises in the formulation of domestic standards.

Strengthen cooperation and exchange in the cultural sector and establish an open exchange zone for culture and arts in Shanghai.

Propel further reforms and opening-up in the China (Shanghai) Pilot Free Trade Zone and its Lin-gang Special Area, particularly in frontier industries, cross-border and offshore finance, and new-type international trade. Support their alignment with international high-standard economic and trade rules to advance institutional opening-up, achieving breakthroughs in key areas.

Encourage high-level cooperation with trade center cities through mechanisms like agreements between local governments.

Conduct stress tests on relevant clauses of high-standard international economic and trade rules, exploring risk prevention systems that are compatible with higher-level openness.

2. Global resource allocation

Facilitate the mutual opening of the financial sector and explore avenues for the convertibility of capital accounts.

Undertake initiatives related to the pilot integration of domestic and foreign currency funds, enhancing the efficiency of cross-border payments for multinational corporations.

Foster the steady and orderly development of the futures market, introducing timely innovations such as shipping indices.

Support the asset management industry in facilitating investment channels for both domestic and foreign capital, optimizing business models across funding sources, investment methods, and fund operations.

Implement the Global Asset Management Partnership Program.

Pilot the use of digital renminbi in various sectors including trade settlement, e-commerce payments, carbon trading, and green electricity trading. Standardize and expand the application scenarios of digital renminbi in the utilization of fiscal funds.

Back the growth of offshore economic and trade businesses initiated by institutions headquartered in the area.

Improve the coordination mechanism for financial supervision, strengthen information sharing and coordinated oversight between central and local authorities, and bolster the capacity of financial regulatory institutions in Shanghai to supervise international financial activities.

Innovate the management mechanism for international organizations and support the establishment of international organization headquarters in Pudong New Area.

3. Cross-border flow of goods and factors

Explore highly convenient Customs clearance mechanisms, leverage the application of Internet Plus technology, and simplify Customs processes for goods with real-time traceability.

Continue to promote the integration and optimization of the Waigaoqiao Bonded Area in Shanghai.

Support the comprehensive development of the area north of Xiaoyangshan Island, enhancing the functions of the Shanghai Pudong International Airport as a dual-purpose aviation hub for both passengers and cargo.

Investigate the implementation of a unified management system for multimodal transportation services encompassing water, land, air, and rail.

Pilot new fueling services, including bonded liquefied natural gas, for internationally navigating vessels.

Explore data asset management and international certification of digital identity. Facilitate the delivery and settlement of digital trade, and build a digital trade service platform.

Support the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone in exploring the establishment of a secure and convenient data flow mechanism. Allow increased convenience in the cross-border flow of data.

Research a high-standard and internationally aligned system of rules for data security management. Innovate data governance mechanisms and actively explore and optimize measures for managing cross-border data flow.

4. Scientific and technological innovation

Support the creation of scientific foundations in cutting-edge fields with participation from diverse funding sources. Develop a mechanism open to the global community for targeted donations to spur technological innovation.

Develop a mechanism open to the global community for tackling cutting-edge technological challenges, backing prominent research institutions and enterprises in their pursuit of groundbreaking developments in strategic, cutting-edge technologies. Foster the collaboration between Chinese and international scientists for high-level research at the vanguard of global science and technology.

Pioneer market-driven mechanisms for transferring and transforming scientific and technological discoveries. Investigate the establishment of systems for affirming rights, commercializing, and sharing profits from government-funded research achievements.

Promote the development of a global offshore innovation hub within the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone.

5. Industrial development

Introduce a Chief Manufacturing Officer system tailored for key industries with entrepreneurs at its core.

Formulate a scenario innovation plan that is open to technology innovation enterprises and hosts global contests focused on technology transformation scenarios.

Harness the influence of patents to guide decision-making, encouraging enterprises to cultivate patents for pivotal technologies.

Drive the establishment of platforms dedicated to developing, applying, and promoting industrial software. Set up a registration and trading platform for industrial processes within existing institutions.

Carry out tests and applications for autonomous driving technology.

Institute a collaborative innovation mechanism for biopharmaceuticals, encouraging medical institutions, universities, and research facilities to intensify collaborative clinical research efforts. Allow new biopharmaceutical products to be priced concerning international counterparts, supporting the development of the innovative drug and medical device industries.

Support the creation of a Yangtze River Delta medical tissue bank that adheres to international medical ethics and complies with management and operational regulations.

6. International cooperation on innovation

Foster deeper international collaboration in basic scientific research and establish a global hub for cutting-edge scientific exchange.

Leverage the World Laureates Forum for research on significant and shared scientific and technological challenges.

Design and lead the launch of major international science plans and projects.

Facilitate cross-border collaboration in technological innovation. Support top overseas universities and research institutions in establishing major forward-looking innovation bases in Pudong New Area. Encourage multinational companies to establish research and development centers in the area.

Support technology enterprises in establishing overseas R&D labs and jointly building research centers and labs with countries participating in the Belt and Road Initiative.

Explore the formulation of ethical rules in globally significant cutting-edge technology fields such as artificial intelligence and biopharmaceuticals. Establish a collaborative review mechanism and construct an expedited ethical review process.

Attract and nurture international scientific and technological organizations, optimize registration procedures, enable global membership recruitment, and establish a comprehensive regulatory mechanism.

Support international industrial and standardization organizations in establishing their registered office in Pudong New Area.

7. Financial support for technological innovation

Improve the institutional framework for public financing, mergers and acquisitions, and other financial processes for technology enterprises within the capital market. Explore the timely introduction of options products on Shanghai's STAR Market. Facilitate financial services for cross-border technology transactions, including settlement in both domestic and foreign currencies.

Promote the growth of venture capital by encouraging and guiding private capital to participate in establishing venture capital funds and equity investment funds in a market-oriented manner, nurturing a group of angel investors.

Support the establishment of venture capital or private equity funds tailored to the lifecycle and financing requirements of technology innovation enterprises. Develop financial products that match the development cycle, risk characteristics, and funding needs of venture capital enterprises.

Strengthen the mergers and acquisitions fund market, diversifying funding sources and ensuring smooth exit channels.

Enhance the efficiency and quality of technology insurance services. Leverage the Shanghai Insurance Exchange to explore insurance products, technologies, and models. Deepen pilot projects for technology insurance risk compensation mechanisms based on market principles.

Improve policies for funds guaranteeing loans for small and medium-sized enterprises. Implement specialized pilot projects for the integration of technology, industry, and finance.

8. Intellectual property rights protection

Advocate for extending the burden of proof shifting system to encompass more intellectual property rights cases within the existing legal framework.

Pilot the implementation of a mediation-first mechanism for the resolution of intellectual property rights infringement disputes.

Explore and refine mechanisms to protect intellectual property rights for small and medium-sized enterprises.

Promote innovation in the system for safeguarding trade secrets and improve rules and guidelines for trade secret protection.

Enhance the market-oriented pricing and cross-regional transaction mechanisms for intellectual property rights, optimizing public services for the management of intellectual property rights.

Support the registration of works based on the principle of 'place of origin' for copyright activities across regions.

Allow overseas agencies providing services related to intellectual property rights to establish permanent representative offices in Pudong New Area and engage in cross-border business related to intellectual property rights.

Talent

9. Attracting global talent

Empower Pudong New Area to issue confirmation letters for qualified high-end foreign talents.

Support qualified foreign talents to take up positions as legal representatives in public institutions and state-owned enterprises within China (Shanghai) Pilot Free Trade Zone, its Lin-gang Special Area, and Zhangjiang Science City. Grant permission for foreign scientists holding permanent residency to lead national science and technology projects in Pudong New Area or act as legal representatives for innovative research and development institutions.

Improve talent introduction mechanisms that align with industry needs and issue corresponding categories of work permits.

Optimize the process for introducing entire project teams led by prominent talents and provide comprehensive support services. Simplify the approval procedure for team members' introduction and facilitate their stay and residence.

Support leading companies in establishing workstations for academicians and experts. Initiate a pilot program for granting access to overseas academic websites for national laboratories, major scientific and technological infrastructure, and entities undertaking major scientific and technological projects.

10. Nurturing urgently needed talents

Establish a mechanism for nurturing highly skilled individuals with the potential to evolve into strategic scientists, leveraging the expertise of world-class scientists.

Explore models for cultivating exceptional talents in mathematics and science through collaboration between high-quality high schools and leading domestic universities.

Optimize the planning and establishment of postdoctoral workstations within enterprises.

Formulate distinct criteria for recognizing high-skilled talents tailored to the specific requirements of different industries.

Establish a high-level college focused on modern industries.

Explore the creation of a talent evaluation system emphasizing innovation value, capabilities, and contributions. Assign employers and industry organizations a pivotal role in talent assessment.

Constitute committees to review and endorse senior professional titles in key industries. Empower Pudong New Area to formulate its assessment standards for urgently needed talents.

Encourage eligible enterprises and industry organizations to independently organize certifications for levels of occupational skills.

Motivate enterprises in new business formats and models to apply for the creation of innovative professions, jointly developing standards for assessing professional skills.

Improve income distribution policies that prioritize knowledge and establish a mechanism reflecting the value of innovative elements such as knowledge and technology.

Support Pudong New Area in jointly cultivating young talents in the field of scientific and technological innovation. This collaboration involves universities, research institutions, and enterprises from countries involved in the Belt and Road Initiative. Encourage enterprises to establish centers for international talent development and collaborative innovation, attracting outstanding young talents to China for studies, exchanges, innovation, and entrepreneurial endeavors.

11. Facilitating entry, exit, stay, and residence for foreign talents

Enable foreign individuals, invited to participate in significant scientific research, exchanges, business, and trade activities in Pudong New Area, to apply for long-term, multiple-entry visas.

Streamline the approval and management process for work and residence permits for foreign talents.

Develop a recognized list of professional qualifications from Hong Kong, Macao, and abroad, focusing particularly on sectors such as high-tech and professional services, under the authorization of national regulations.

Permit overseas professionals who meet specific criteria to engage in specific major projects within the area under a temporary practice license.

Transformation of government functions

12. Creating a first-class business environment

Implement a comprehensive reform of the administrative licensing system, introducing a notification and commitment procedure based on corporate credit.

Deepen reforms in the investment project approval system to enhance the efficiency and convenience of obtaining investment approvals.

Improve the accountability system for architects, further reforming the quality supervision, and maintenance systems of construction projects, and encourage the purchase of construction quality insurance.

Carry out a unified licensing reform for courier services, consolidating various licenses into a single framework.

Strengthen risk monitoring and early warning systems, and introduce innovative regulatory methods for emerging industries and business models.

Advance digital transformation in investment processes.

Develop a holistic service and rapid response mechanism that supports businesses throughout their entire lifecycle.

13. Protecting foundation for fair competition

Create a favorable legal environment for the protection of property rights and the legitimate rights and interests of entrepreneurs, ensuring equal protection for the property rights of all ownership types.

Fully implement a system of pre-entry national treatment combined with a negative list for foreign investments, protecting the legal rights and interests of foreign investors on an equal basis.

Strengthen fair competition reviews, eliminating regulations and practices that violate the principles of fair competition.

Implement a fair and uniform market regulation system, eliminate hidden barriers in project bidding, improve mechanisms for credit repair and objections to dispute after correcting dishonest behaviors, and facilitate business operations for law-abiding enterprises.

Deepen reforms of state-owned assets and enterprises, optimize the functions of state asset regulatory agencies in Pudong New Area, clarify the responsibilities of state asset investors, improve the personnel selection, employment, and promotion mechanism, improve assessment and incentive mechanisms, research restructuring or establishing new state-owned capital investment and operation companies focused on innovation and entrepreneurial investment, and reasonably authorize power delegation.

Support state-owned enterprises in fully competitive fields to introduce strategic investors as active shareholders for company governance, and explore converting some state-owned shares into preferred shares.

Support eligible state-owned technology enterprises in implementing equity and dividend incentives.

Mega-city governance

14. Public services

Encourage top domestic universities to partner with prestigious international institutions to establish high-level joint educational ventures in Pudong New Area.

Develop a cluster of international medical services to expand the openness of healthcare services. Support the establishment of healthcare facilities by international medical institutions through joint ventures or collaborative efforts.

Strengthen the public health infrastructure, and improve systems for major epidemic prevention, control, treatment, and emergency responses.

Perfect the elderly care ecosystem to ensure seamless integration of home-based and community services with comprehensive medical and wellness care, promoting the availability of inclusive eldercare services.

Improve the affordable housing policy framework, investigating financing avenues and mechanisms for revenue sharing for the development of affordable rental housing on collective commercial land.

Provide top-tier public services for physical fitness.

15. Green transition

During the 14th Five-Year Plan period (2021-25), avoid including the utilization of renewable energy and raw materials in the overall control of energy consumption. Explore effective strategies to shift from regulating total energy consumption and intensity to implementing a dual-control mechanism that encompasses both the consumption and intensity of carbon emissions.

Investigate the creation of certification standards for carbon emissions and footprints for both industrial and consumer goods, aligning them with pertinent international standards.

In specific regions, implement pilot projects for incremental power distribution and facilitate decentralized consumption of distributed renewable energy.

Support the development of diverse green financial products.

Advance precise waste sorting and recycling practices.

Establish a robust non-onsite supervision and law enforcement system focusing on automatic monitoring of pollution sources.

Improve the evaluation system for environmental and social governance, promoting legal disclosure of environmental information by relevant enterprises and institutions.

16. Integrated development of urban and rural areas

Optimize the approval mechanism for the conversion of non-permanent basic farmland to construction land, exploring refined approaches for precision management of permanent basic farmland.

In accordance with unified arrangements, deepen the pilot projects for collectively operated rural construction land entering the market. Improve mechanisms for distributing added value revenues from land and refine coordination for compensation in land acquisition and family relocation.

With full protection of farmers' rights, encourage diverse utilization of unused rural residential land resources to bolster farmers' income.

Innovate cost-sharing and benefit-sharing mechanisms for enclave economies, placing particular emphasis on regions engaged in paired assistance with Pudong New Area.

Source: shanghai.gov.cn