Shanghai has rolled out a comprehensive set of measures to encourage reinvestment by foreign-invested enterprises.

Here is a breakdown of some of the key points from the policy:

1. Supporting diverse reinvestment methods

FIEs legally established in China are encouraged to reinvest undistributed profits, while foreign investors are encouraged to reinvest earnings legally obtained in China in either local or foreign currencies.

Reinvestment methods include establishing new enterprises in Shanghai, increasing capital in existing enterprises, acquiring shares, equity, property shares or other similar interests of domestic enterprises, as well as investing in specific projects.

2. Strengthening project coordination services

Shanghai will establish a project database for reinvestment by FIEs and promote faster project implementation through cross-departmental coordination.

For reinvestment projects included in the list of major and key foreign-invested projects at the municipal level, coordinated services will be provided by dedicated teams, and relevant support policies will apply.

3. Optimizing land resources allocation

FIEs are encouraged to adopt flexible approaches to industrial land use, including leasing before land use rights are granted, leasing combined with land use rights, or long-term leasing.

4. Encouraging technological upgrades

FIEs are encouraged to carry out reinvestment activities such as expanding production capacity and undertaking technological transformation projects, with eligible projects receiving support.

FIEs are also supported in applying for China's ultra-long-term special treasury bonds to invest in large-scale equipment renewal projects in key areas.

5. Promoting domestic production

FIEs acting as applicants for medical device registration are supported in transferring imported products held by registrants under the same actual controller to domestic production. Enhanced consultation services will be provided on product testing, application procedures, evaluation requirements, and system inspections.

FIEs are also encouraged to participate in the pilot program for cross-border segmented production of bioproducts.

6. Bolstering research and development

FIEs are supported in reinvesting to establish R&D institutions, municipal key laboratories, and technology innovation centers, and may benefit from related support policies.

R&D institutions established through reinvestment are encouraged to engage in service outsourcing, with projects that meet development criteria for trade in services receiving funding.

7. Boosting service sector participation

Shanghai will accelerate the implementation of China's comprehensive pilot program for expanding opening-up in the service sector. Eligible FIEs are encouraged to reinvest in areas such as value-added telecommunications, healthcare, biotechnology, culture, education, and finance.

8. Streamlining production transfer processes for medical devices

For FIEs that transfer the production of products with an existing Class II medical device import registration certificate to Shanghai, on-site inspections of the registration and production systems will be reduced or waived.

Where multiple licensing applications are submitted by the same enterprise, on-site inspections will be conducted jointly.

9. Coordinating pharmaceutical logistics

Foreign-invested pharmaceutical wholesale enterprises with a unified quality management system may, subject to meeting modern pharmaceutical logistics requirements for entrusted storage and transportation, designate an eligible wholesale enterprise as the operating entity.

Through the application of information technology, participating enterprises may share resources such as personnel, information, warehousing, and transportation to carry out cross-regional multi-warehouse collaborative logistics.

The operating entity shall assume the core responsibilities for managing multi-warehouse collaboration.

10. Facilitating food chain operations

For foreign-invested chain food sales enterprise headquarters that are registered in Shanghai, operate under a unified brand name, and have a unified food safety management system, new stores that meet conditions for streamlined licensing may be exempt from on-site inspections when applying for food business licenses.

11. Implementing tax policies for reinvestment

Shanghai will provide convenient policy consultation services. Measures will be implemented to ensure effective application of tax credit policies for foreign investors who reinvest distributed profits, as well as deferral of withholding income tax.

12. Guiding reinvestment in encouraged industries

FIEs that reinvest in industries listed in the Catalogue of Encouraged Industries for Foreign Investment may enjoy relevant support policies for imported equipment.

13. Facilitating forex registration and capital use

FIEs are supported in using legitimately earned foreign exchange profits, and foreign investors in using foreign exchange profits legally obtained within China, to carry out domestic reinvestment.

Under eligible and compliant circumstances, the investee enterprise or equity transferor is not required to separately register or update basic information for domestic reinvestment. Relevant foreign exchange funds may be credited to the capital account of the investee enterprise or the capital account settlement account of the equity transferor, and used in accordance with applicable account management requirements.

14. Expanding the QFLP pilot program

Shanghai will further deepen the Qualified Foreign Limited Partner pilot program by broadening funding sources.

Foreign-invested private equity fund managers are supported in using part of their registered capital to invest in the private equity funds they initiate. Application and processing procedures under the pilot program will be optimized to facilitate domestic investment by overseas investors through the QFLP mechanism.

15. Expanding reinvestment financing channels

Shanghai will facilitate related-party shareholder loan applications for reinvestment projects, making use of streamlined review and registration arrangements for medium- and long-term foreign debt.

Restrictions on the use of domestic loans by foreign-invested holding companies will be lifted, allowing such loans to be used for equity investment. Financial institutions are encouraged to provide tailored financial products and services that better match domestic reinvestment needs.

16. Fostering new models of investment promotion

Shanghai will foster a fair and competitive business environment. Targeted policy support will be enhanced to encourage FIEs to undertake activities such as capital increases, capacity expansion, scale upgrading, technological transformation, equipment renewal, digital and intelligent transformation, R&D innovation, talent recruitment, and vocational training.

17. Strengthening coordination between central districts and new towns

Industrial policies of Shanghai's five new towns will be regularly promoted to regional headquarters of multinational companies, and dedicated activities will be organized to encourage foreign-invested headquarters enterprises to expand reinvestment by making full use of resources in the new towns.

18. Boosting reinvestment information reporting

Cross-departmental information sharing will be improved. Through channels such as electronic business licenses, FIEs will be guided to complete reinvestment information reporting in a timely manner, facilitating their access to relevant support policies.

19. Evaluating foreign investment promotion performance

Reinvestment by FIEs will be included in the evaluation system to measure its contributions to economic and social development.

20. Strengthening policy outreach and guidance

A dedicated policy section will be set up on Invest Shanghai (the Shanghai Foreign Investment Promotion Service Platform) to provide targeted information to FIEs.

The Chinese and English versions of Shanghai's 15th Five-Year Plan (2026-30) will be published, and targeted promotional and explanatory sessions will be conducted for FIEs to support the formulation of their investment strategies.

Appendix: Application guidance for enterprise-related matters

Serial No	Policy Articles	Relevant Matters	Application Methods	Consulting Authorities & Contact Details
1	4. Encouraging technological upgrades	Applying for Shanghai's special fund to promote high-quality industrial development through technological transformation	Enterprises can apply through the Special Fund Management and Service Platform of Shanghai Municipal Commission of Economy and Informatization. Website: https://zxzj.sheitc.sh.gov.cn	Shanghai Municipal Commission of Economy and Informatization Tel: 021-2311-2714
2		Applying for China's ultra-long-term special treasury bonds for equipment renewal	Enterprises can apply through the municipal and district development and reform departments, as well as the municipal and district authorities for economy and informatization.	Shanghai Municipal Development and Reform Commission Tel: 021-6359-6761 Shanghai Municipal Commission of Economy and Informatization Tel: 021-2311-2714
3	5. Promoting domestic production	Applying to transfer imported medical devices to domestic production	1. Enterprises can apply for the "registration and approval of domestic Class II medical devices" through the "Government Online-Offline Shanghai" platform. Website: https://zwdt.sh.gov.cn/govPortals/bsfw/item/bcba2218-9854-4519-8e5b-efe88d34a25f 2. Enterprises can apply for the "Classes II and III medical device production permit" through the "Government Online-Offline Shanghai" platform. Website: https://zwdt.sh.gov.cn/govPortals/bsfw/item/5562ab71-bd8b-480c-b264-a715cb2f3106	Shanghai Municipal Medical Products Administration Tel: 021-6326-9368
4		Applying to participate in the pilot program for cross-border segmented production of bioproducts	Enterprises can apply for the "drug manufacturing permit" through the "Government Online-Offline Shanghai" platform. Website: https://zwdt.sh.gov.cn/govPortals/bsfw/item/9db4200e-5af1-4698-bccb-fc85dfdd582e	Shanghai Municipal Medical Products Administration Tel: 021-5490-9100
5	6. Bolstering research and development	Applying for support policies for establishing municipal key laboratories, and technology innovation centers	Enterprises can apply through the "Shanghai Municipal Information Management Platform for Finance, Science and Technology Input" on the "Government Online-Offline Shanghai" platform. Website: http://czkj.sheic.org.cn/czkjtr	Shanghai Municipal Commission of Science and Technology Tel: 800-820-5114 Mobile: 400-820-5114
6		Applying for Shanghai's special fund for the high-quality development of commerce in trade in services	In the first half of each year, the policy on the special fund is published on the official website of the Shanghai Municipal Commission of Commerce. Enterprises may apply according to the relevant regulations, with the policy updated annually.	Shanghai Municipal Commission of Commerce Tel: 021-2311-0714
7	7. Boosting service sector participation	Applying to participate in the pilot program for expanding the opening-up of value-added telecommunications	1. Enterprises can apply for the "telecommunications business operation permit" through the "Administrative Permits" section under "Government Services" on the official website of the Ministry of Industry and Information Technology. Website: https://ythzxfw.miit.gov.cn 2. Service Guide for the Pilot Program for Expanding the Opening-up of Value-Added Telecommunications Website: https://shca.miit.gov.cn/cms_files/filemanager/35041 7865/attach/202410/6e7800509470491d9b2873c948e10c9f.pdf	Shanghai Municipal Commission of Economy and Informatization Tel: 021-6080-1129 (for policy consultation) Shanghai Communications Administration Tel: 021-6390-5098 (for filling guidance) Pudong New Area Tel: 021-5878-8388 Ext 64417 (for project application) Lin-gang Special Area Tel: 021-6828-6752 (for project application)
8		Applying for the establishment of medical institutions (pilot program for foreign-funded hospitals)	Enterprises can apply for the "medical institution establishment approval (provincial-level authority)" through the "Government Online-Offline Shanghai" platform. Website: https://zwdt.sh.gov.cn/govPortals/bsfw/item/d3cf0ce2-7f18-4dcd-9cfc-fffcd68e3c67	Shanghai Municipal Commission of Health Tel: 021-3397-6319
9	9. Coordinating pharmaceutical logistics	Applying to manage multi-warehouse collaborative logistics for pharmaceutical wholesale	Enterprises can apply for the "pharmaceutical wholesale enterprise operating permit" through the "Government Online-Offline Shanghai" platform. Website: https://zwdt.sh.gov.cn/govPortals/bsfw/item/808d1bc8-452a-433a-aa47-5f16ec37a86b	Shanghai Municipal Medical Products Administration Tel: 021-5490-9122
10	10. Facilitating food chain operations	Applying for streamlined management of chain food business licensing	For enterprises that meet the facilitation criteria, newly established outlets will be automatically exempt from on-site inspections after applying for the "food business license (municipal-level authority)" through the "Government Online-Offline Shanghai" platform. Website: https://zwdt.sh.gov.cn/govPortals/bsfw/item/85480a40-cc3d-471c-89f4-68f5671da23d	Shanghai Municipal Administration for Market Regulation Tel: 021-6422-0000
11	11. Implementing tax policies for reinvestment	Applying for confirmation of eligibility for tax credit policies for foreign investors who reinvest distributed profits	Enterprises can apply through the "Tax Credit Application for Reinvestment by Profits" section of the "Comprehensive Management of Foreign Investment (Public Portal)" on the unified platform of the Ministry of Commerce's operation system. Website: https://wzzxbs.mofcom.gov.cn/gz.html	Shanghai Municipal Commission of Commerce Tel: 021-2311-0730
12		Handling tax credit for reinvestment, and filing for deferral of withholding income tax for reinvestment	1. Enterprises distributing profits may apply through the Electronic Tax Bureau. Website: https://etax.shanghai.chinatax.gov.cn 2. Enterprises distributing profits can apply on-site at the tax service hall of the relevant tax authority.	Shanghai Municipal Tax Service, State Taxation Administration Tel: 021-12366
13	12. Guiding reinvestment in encouraged industries	Applying for confirmation of tax exemption on imported equipment for encouraged foreign-invested projects	Enterprises can apply for "confirmation of tax exemption on imported equipment under encouraged foreign-invested projects" through the "Government Online-Offline Shanghai" platform. Website: https://zwdt.sh.gov.cn/govPortals/bsfw/item/f1a5443f-63ff-43a7-91e6-4ae709794710	Shanghai Municipal Development and Reform Commission Tel: 021-6359-6761
14		Applying for review of tax reduction and exemption on imported equipment for encouraged foreign-invested projects	1. Enterprises can apply in person at the offices of the respective customs authorities (linked to the websites of the respective customs authorities) or via the "Tax and Fee Services" section on the 'Internet + Customs' integrated online service platform. Website: https://online.customs.gov.cn 2. Enterprises may submit in person at the relevant subordinate offices of Shanghai Customs.	Shanghai Customs Tel: 021-12360
15	15. Expanding reinvestment financing channels	Applying for review and registration of enterprises' medium- and long-term external debts	Enterprises can apply for "review and registration of enterprises' medium- and long-term external debts" through the National Development and Reform Commission's government service hall. Website: https://services.ndrc.gov.cn/ecdomain/portal/portlets/bjweb/newpage/firstpage/firstpage.jsp?code=&state=123	National Development and Reform Commission Tel: 010-6850-5043, 010-6850-5050
16	18. Boosting reinvestment information reporting	Domestic reinvestment information reporting by foreign-invested enterprises	Enterprises may submit applications through the "Foreign Investment Information Report" section under "Shanghai Online Business Registration" on the "Government Online-Offline Shanghai" platform. Website: https://yct.sh.gov.cn/portal_yct/	Shanghai Municipal Administration for Market Regulation Tel: 021-6422-0000 Ext 5446 (for filling guidance) Shanghai Municipal Commission of Commerce Tel: 021-2311-0722 (for service consultation)

Source: Shanghai Municipal Development and Reform Commission

Note: The English text is for reference only. In case of any discrepancies, the Chinese version shall prevail.