The Yangpu district of Shanghai rolled out measures on Dec 31 to further attract and leverage foreign capital and upgrade its open economy.

The measures are valid for three years from Feb 1, 2025. The following are their major points:

I. Eligible entities

These measures apply to foreign-invested enterprises with a high development quality and efficiency, sound financial management systems and positive credit records.

II. Supporting criteria

1. Boost actual utilization of foreign investment

When foreign-invested enterprises meet the following criteria, they will be eligible for an annual support grant of up to 3 million yuan ($412,000):

1) Newly established or existing foreign-invested enterprises operating in the district;

2) In line with the district's industrial development strategy, which prioritizes the digital economy at its core, with "intelligent plus" and "internet plus" as key drivers. The strategy also supports the vigorous development of industrial clusters in the online new economy, smart manufacturing and creative designs, as well as the forward-looking investments in emerging sectors such as sci-tech services, artificial intelligence, life sciences and healthcare, and green, low-carbon industries;

3) Have newly increased and implemented foreign investment exceeding $5 million after Jan 1, 2024.

2. Encourage clustering of corporate headquarters

When Yangpu-based foreign-funded enterprises are recognized as regional headquarters or business unit headquarters of transnational corporations by the Shanghai Municipal Commission of Commerce after Jan 1, 2024, they will each receive a grant of 500,000 yuan.

3. Boost innovative development

When foreign-funded enterprises based in the district are recognized as global R&D centers, foreign-funded R&D centers or foreign-funded open innovation platforms by the Shanghai Municipal Commission of Commerce after Jan 1, 2024, they will each get a grant of 300,000 yuan.

III. Additional provisions

1. When these measures overlap with other measures or policies, the principle of "adopting the highest, avoiding any duplication" shall be followed.

2. When new regulations are issued by China or Shanghai during the implementation of these measures, the new regulations shall prevail.

3. These measures shall be interpreted by the Yangpu District Commission of Commerce.

Source: Shanghai Yangpu District Commission of Commerce

Note: The English version of these measures is for reference only; the official Chinese document shall prevail.