Shanghai has issued a plan to build a national demonstration zone for the innovative development of trade in services.

The city's trade in services is expected to reach $270 billion by 2027 and exceed $300 billion by 2030, as Shanghai works to become a globally influential hub for the sector.

Upgrading key service sectors

To improve transportation services, Shanghai will strengthen its international transit capabilities, support airlines in increasing passenger transit and cargo transshipment volumes and improving intermodal transport efficiency, and expand the use of electronic documents in shipping, trade, and finance.

Shanghai will also support multinational companies in bringing together more functions related to research and development, treasury management, investment decision-making, procurement and distribution, supply chain management, and shared services.

Law firms will be encouraged to employ foreign lawyers as foreign legal consultants, while Chinese and foreign law firms will be supported in establishing joint operation offices in the China (Shanghai) Pilot Free Trade Zone and its Lin-gang Special Area.

To boost travel services and inbound consumption, Shanghai will foster the integrated development of culture, commerce, tourism, sports, and exhibitions. It will promote its mobile platform for departure tax refunds and enhance the services offered by Easy Go, an integrated service platform for inbound visitors.

Developing new forms of trade in services

In biomedicine, Shanghai will support the global registration and certification of innovative drugs, modern Chinese medicines, and high-end medical devices, enabling these products to be sold in overseas markets. It will also expand international cooperation involving biomedical innovation outcomes. The Shanghai FTZ will pilot wider market access for the development and application of gene-based diagnostic and treatment technologies.

In the realm of artificial intelligence, Shanghai will attract companies and institutions to establish research and development centers, open-source platforms, and collaborative laboratories. It will also promote the use of AI in healthcare, education, and professional services.

In data trade, the city will support the compliant use of dedicated cross-border data lines and provide value-added services for overseas data while ensuring data security. It will also further develop the international board of the Shanghai Data Exchange.

In financial and insurance services, Shanghai will further internationalize bulk commodity trading, make more futures and options products directly available to overseas traders, and deepen cooperation in trade in services between Lujiazui Financial City and the City of London.

Facilitating cross-border flows

Shanghai will develop sector-specific negative lists for outbound data transfers and apply them citywide. Multinational companies that have passed the relevant assessment or certification will be allowed to transfer personal information freely across borders within their corporate groups. The city will also improve consultation services concerning the negative lists.

Shanghai will continue to expand the use of the Foreign Permanent Resident ID Card across key public and government services.

The city will facilitate entry and exit, stay and residence for foreign high-caliber professionals, foreign senior executives, foreign senior technical professionals, and foreign nationals coming to Shanghai for economic and trade activities, as well as their family members. It will also expand the use of electronic port visas and further improve its list-based system for recognizing overseas professional qualifications.

Commercial banks may, in principle, process foreign exchange receipts and payments for trade in services equivalent to $50,000 or less per transaction without reviewing transaction documents, provided they have conducted appropriate due diligence. Banks will also be supported in providing more convenient cross-border payment and settlement services to high-quality companies engaged in trade in services.

Advancing high-standard opening-up

Shanghai will steadily advance the implementation of the negative list for cross-border trade in services in the Shanghai FTZ. It will also align requirements concerning licenses, qualifications, and technical standards with the World Trade Organization's Reference Paper on Services Domestic Regulation.

The city will also pilot a "one test, multiple certifications" model for new energy vehicles, new-type energy storage, and photovoltaic products, allowing a single test to support multiple certifications recognized in multiple countries.

Source: Shanghai Municipal Commission of Commerce