Issue 26

Shanghai Weekly Bulletin

No. 1, January 2024

Shanghai Weekly Bulletin is an information service presented by the Foreign Affairs Office of Shanghai Municipal People's Government in collaboration with Wolters Kluwer to foreign-funded enterprises, foreign-related institutions as well as people from overseas living in Shanghai. Covering major national and Shanghai foreign-related news, event information, policy Q&A and interpretations in the past week, it keeps you up-to-date with the latest foreign-related policies and developments in Shanghai.

Laws and Regulations

【National】

1. Top Legislature Adopts Revised Company Law and Amendment (XII) to the Criminal Law

【Keyword: Company Law; Criminal Law】

The Standing Committee of the 14th National People's Congress (NPC) concluded its seventh session at the Great Hall of the People in Beijing on December 29, 2023. The meeting adopted the revised Company Law of the People's Republic of China, which will take effect on July 1, 2024; and the Amendment (XII) to the Criminal Law of the People's Republic of China, which will take effect on March 1, 2023.

Source: XINHUANET (Company Law); XINHUANET (Criminal Law) 

http://www.news.cn/politics/20231230/e6964c1620e04f3a94989df81581389f/c.html

http://www.news.cn/politics/20231229/387cc35b798f465880139ad212b0b8c8/c.html

 

2. SPC Issues Interpretation on Application of International Treaties and Practices in the Trial of Foreign-related Civil and Commercial Cases

【Keyword: Foreign-related Civil and Commercial Cases; International Treaties; International Practices】

The Supreme People's Court (SPC) released on December 28, 2023 the Interpretation of the Supreme People's Court on Certain Issues Concerning the Application of International Treaties and International Practices in the Trial of Foreign-related Civil and Commercial Cases, as well as some typical cases. With nine articles, the Interpretation took effect on January 1, 2024.  

Source: SPC

https://www.court.gov.cn/zixun/xiangqing/421932.html

 

3. SPC Issues Provisional Guidelines for One-stop Diversified International Commercial Dispute Resolution Platform

【Keyword: International Commercial Dispute Resolution】

The Supreme People's Court (SPC) issued on December 29, 2023 the Work Guidelines for One-stop Diversified International Commercial Dispute Resolution Platform (for Trial Implementation), which will take effect on January 30, 2024. The document is a vivid practice to support the eight steps for high-quality Belt and Road cooperation, being of great practical significance to improve the diversified international commercial dispute resolution mechanism that connects litigation, mediation and arbitration, and give full play to the one-stop platform and create an optimal place for the resolution of international commercial disputes.

Source: SPC

  

【Shanghai】

1. Shanghai Adopts Several Regulations 

【Keyword: International Trade Center; Green Transformation】

The Standing Committee of the 16th Shanghai Municipal People's Congress voted to adopt several regulations at its 9th session on December 28, 2023. The revised Regulations of Shanghai on Promoting the Development of the International Trade Center will take effect on February 1, 2024, and the Regulations of Shanghai on Promoting Green Transformation of Development Model took effect on January 1, 2024. 

Source: Shanghai Municipal People's Congress

 

2. Shanghai Issues Measures to Improve Construction and Management of Major Projects

【Keyword: Major Projects】

The General Office of Shanghai Municipal People's Government recently issued the Measures of Shanghai for the Construction and Management of Major Projects. Consisting of 19 articles, the Measures took effect on January 1, 2024 and will remain effective until December 31, 2028. 

Source: Shanghai Municipal People's Government

https://www.shanghai.gov.cn/nw12344/20231228/f36f15790838446b9a7449900b9c3bc8.html

 

3. Shanghai Introduces Measures to Improve Business Environment

【Keyword: Business Environment】

Shanghai Municipal Administration for Market Regulation issued on December 25, 2023 the Measures of Shanghai on Promoting Improvement and Upgrade of Business Environment and Driving High-quality Development. The document puts forward 15 measures in two aspects, including promoting targeted assistance and enhancing the capacity of industrial development, and implementing service-oriented supervision and increasing the level of modernization in governance.

Source: Shanghai Municipal Administration for Market Regulation

https://scjgj.sh.gov.cn/130/20231226/2c984a728ca48886018ca558808314ac.html

 

4. Shanghai Issues Measures for Innovative Supervision of Integrated Circuit Industry

【Keyword: Integrated Circuit Industry】

Shanghai Customs recently issued the Measures for Shanghai Customs to Implement Innovative Supervision and Support Development of the Integrated Circuit Industry. Consisting of 35 articles in seven chapters, the document mainly provides for the customs clearance management, control and inspection, tax collection and management, bonded supervision, enterprise management, and audit operations.

Source: Shanghai Customs

http://shanghai.customs.gov.cn/shanghai_customs/423405/qtzhxx1/423461/423462/5588500/index.html

 

5. Shanghai Lin-gang Issues Three-year Action Plan for High-quality Development of the New Materials Industry

【Keyword: Lin-gang Special Area; New Materials Industry】

The Three-year Action Plan for High-quality Development of the New Materials Industry in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone has been recently issued. According to the document, the new materials industry in the Lin-gang Special Area will strive to achieve five goals by 2025, including doubling the industry output value, setting up at least two industry innovation alliances, incubating at least three listed companies, building at least four service platforms or incubation carriers, and developing five industry clusters of new materials companies.

Source: Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone

https://www.lingang.gov.cn/html/website/lg/index/government/file/1738261876295372802.html

 

One Week in Shanghai

【Recent Developments】

1.Shanghai Launches New Online Portal for Expat Services

【Keyword: International Services Shanghai】

Shanghai launched a new online portal for expat services (english.shanghai.gov.cn) on January 1, 2024, introducing the beta version of its English website  alongside social media accounts on Facebook, X, and WeChat. The portal aims to provide authoritative information and interactive services in areas such as doing business and finding a job apart from studying, traveling and shopping in Shanghai. 

Source: Shanghai Release

 

2.Shanghai Court’s One-stop International Commercial Dispute Resolution Platform Launched 

【Keyword: International Commercial Disputes; One-stop Dispute Resolution Platform】

Shanghai Court’s One-stop International Commercial Dispute Resolution Platform was officially launched on December 27, 2023. The platform offers both Chinese and English versions, and features seven service modules, including litigation, mediation, arbitration, foreign law ascertainment, translation, notarization, and legal resource database.

Source: Shanghai High People's Court

 

【Competitive Events】

1. Shanghai to Hold 175 International and Domestic Sports Events in 2024

【Keyword: Sports Events】

According to the recently released 2024 Shanghai International and Domestic Sports Events Plan (First Edition), Shanghai will host 175 sports events in 2024, including the Olympic Qualification Series, the International Skating Union’s Four Continents Figure Skating Championship, FINA Swimming World Cup, FISE World Tour, and FIA Formula E World Championship. Not only will top events return to Shanghai, such as the F1 China Grand Prix and Shanghai Global Equestrian Championship, unique brand events will also take place to add to the charm of the city.

Source: Shanghai Release

 

【Culture & Art】

1. The 2nd Innovation and Entrepreneurship Competition for Cultural and Creative Industry in Shanghai Kicks off 

【Keyword: Cultural and Creative Industry in Shanghai】

The 2nd Innovation and Entrepreneurship Competition for Cultural and Creative Industry in Shanghai is open for registration until January 31, 2024. On the theme of "Empowering the Future", the competition aims to stimulate cultural innovation and creativity, discover and cultivate outstanding cultural and creative enterprises and innovative talents, and promote Shanghai to develop into a cultural and creative industry center with international influence. 

Source: Shanghai Release

 

2.Shanghai Jiushi Art Museum Wraps up 2023 with Heavyweight Exhibition

【Keyword: Modern and Contemporary Art】

Shanghai Jiushi Art Museum recently opened a heavyweight exhibition at the end of this year. The exhibition displays 60 masterpieces by some 20 artists and designers who have lived in Shanghai for a long time, such as Yan Wenliang, Lin Fengmian and Liu Haisu, focusing on the development process and pursuit of modern and contemporary art in Shanghai. The exhibition will last until February 26, 2024.

Source: Shanghai Tourism

 

3. Shanghai Astronomy Museum Opens Original Exhibition of "Starry Sky of Dunhuang"

【Keyword: Starry Sky of Dunhuang】 

An original exhibition titled "The Starry Sky of Dunhuang" organized by Shanghai Astronomy Museum and the Dunhuang Academy has officially opened at a temporary exhibition hall of the museum. The exhibition combines astronomy and Dunhuang, integrates digital media technology, and displays Dunhuang astronomical treasures to the public in a multi-dimensional and in-depth manner, and spreads and promotes the outstanding astronomical achievements and scientific culture of ancient China. The exhibition will last until April 21, 2024.

Source: Shanghai Tourism

 

【Corporate Activities】

1.Tesla Acquires New Land in Lin-gang for Megapack Battery Factory, Opening New Chapter for Global Production Layout

【Keyword: Tesla】

Tesla held a signing ceremony on December 22, 2023 for its Megapack battery factory in Lin-gang Special Area. The planned factory will manufacture Megapack batteries and supply to the global market. Construction is expected to begin in the first quarter of 2024, and production will start in the fourth quarter. In the initial stage, the factory plans to manufacture 10,000 Megapack units a year with a total energy storage capacity of 40GWh. 

Source: Shanghai Lin-gang

 

Q&A

Q1: Officials of the Supreme People's Court answered reporters' questions on the judicial interpretation on application of international treaties and international practices in the trial of foreign-related civil and commercial cases and the typical cases. Can you introduce the overall situation of the people's courts' application of international treaties and international practices in the trial of foreign-related civil and commercial cases in recent years? 

A1: In recent years, the people's courts have adhered to the principle of international law that "treaties must be observed", and we have performed international treaty obligations in good faith. While properly resolving disputes, we have shaped the international influence and credibility of our country's judiciary system, served high-level opening up to the outside world, and created a market-oriented and rule-of-law business system. We have made important contributions to creating a world-class business environment and maintaining a fair and just order on international trade and investment activities.

According to statistics, the fields in which international treaties and international practices are applicable to foreign-related civil and commercial cases cover many aspects such as international trade, maritime affairs, air transportation, intellectual property rights, and environmental protection. The major international treaties are listed as below: United Nations Convention on Contracts for the International Sale of Goods, Convention for the Unification of Certain Rules Relating to International Carriage by Air (1929 Warsaw Convention), Convention for the Unification of Certain Rules for International Carriage by Air (1999 Montreal Convention), International Convention on Civil Liability for Oil Pollution Damage (2001), International Convention on Civil Liability for Oil Pollution Damage (1969), International Convention on Civil Liability for Oil Pollution Damage (1992), Athens Convention Relating to the Carriage of Passengers and Their Baggage by Sea (1974), International Convention on the Regulations for Preventing Collisions at Sea (1972), and International Convention on Salvage (1989). The international practices mainly include International Rules for the Interpretation of Trade Terms, Uniform Customs and Practice for Documentary Credits, Uniform Rules for Demand Guarantees, York-Antwerp Rules, Code of Safe Practice for Solid Bulk Cargoes and so on.

The Supreme People's Court (SPC) attaches great importance to the accurate application of international treaties and international practices, and guides courts at all levels to apply international treaties and respect international practices by formulating judicial interpretations, publishing meeting minutes and typical cases. Taking the United Nations Convention on Contracts for the International Sale of Goods as an example, there were 168 foreign-related civil and commercial cases concluded by Chinese courts from 2018 to June 2023 in which this Convention was applied. In addition, the SPC has also released the Several Opinions on Providing Judicial Services and Safeguards for the Belt and Road Cooperation by People's Courts, the Guiding Opinions on the Services and Guarantees of the People's Courts for Further Expanding Opening-up, and the Opinions on Providing Judicial Guarantee for the Building of Pilot Free Trade Zones. These documents have emphasized the need to accurately apply international treaties and international practices in accordance with the law and enhance the consistency, stability and predictability of the application of international treaties and international practices in legal proceedings.

Source: SPC

  

Expert Perspective

A Quick Look at the Highlights of the Shanghai Regulation on Advancing the Building of an International Commercial Arbitration Center

By: Gong Yiduo, Zhang Yifei (Global Law Office)

[Continuing from the Last Issue]

 

Third Highlight: Building a Professional Team

Professionalism is one of the solid foundations for the long-term development and popularity of arbitration, and it is also an important goal worthy of unremitting pursuit. To this end, the Shanghai Regulation on Promoting the Construction of an International Commercial Arbitration Center (The Regulation), on the basis of summarizing and consolidating the results of the reform of arbitration institutions in recent years, establishing and improving the independence of arbitration institutions and the corporate governance structure, strives to strengthen capacity building to enhance the professionalism of practitioners, and build a reliable and professional arbitration team.

There is a famous saying in the arbitration community that "the quality of arbitration services depends on the arbitrator". In view of the important role of arbitrators in the arbitration process, the arbitrators’ professionalism, case handling capacity and ethical code of conduct all have a decisive impact on the quality of arbitration services. In Article 11, Paragraph 1, it’s stressed that arbitration institutions in Shanghai should establish and improve arbitrator appointment and management rules, improve arbitrator qualification review, management supervision, assessment rewards and punishments, and exit mechanisms, and strengthen business training and professional ethics for arbitrators. In light of the fact that different arbitrators have different areas of expertise and different industries of proficiency, Article 11, Paragraph 2 stipulates that arbitration institutions should establish a roster of arbitrators according to their different specialties. Disputed parties can also select arbitrators from outside the roster as long as they meet the conditions stipulated in the Arbitration Law.

As the manager of arbitration procedures and provider of arbitration services, the arbitration secretary is also an indispensable part of the arbitration process. The Regulation aims to promote the professionalization of arbitration secretaries. Article 12 not only proposes to strengthen business training and professional ethics education, but also emphasizes that arbitration institutions should establish a classified and hierarchical management system and career promotion, assessment and evaluation mechanism.

In addition, Article 36 proposes to step up cultivation of talents in short supply, foreign-related talents, and young talents, and puts forward measures like encouraging business training and exchange activities and establishing training bases for foreign-related arbitration talents.

 

Fourth Highlight: Convenient Arbitration Services

The convenience of arbitration services is an important consideration for arbitration participants in measuring their satisfaction with the arbitration process. In order to provide more friendly and convenient arbitration services and allow arbitration institutions, arbitrators, arbitration agents and arbitration parties to have a better experience in conducting or participating in arbitration activities in Shanghai, the Regulation has taken positive measures in the following aspects:

In terms of information sharing, Article 29 proposes to support arbitration institutions to connect with the information systems of courts and relevant departments, thereby facilitating the smooth progress of procedures such as document delivery, preservation measures, investigation and evidence collection.

In terms of foreign exchange and financial services, the Regulation has noted the problem of underdeveloped cross-border financial services such as the purchase and payment of foreign exchange. It stipulates in Article 31 that financial institutions are supported to provide convenient and speedy foreign exchange purchase and payment services for arbitration institutions and relevant arbitration practitioners to carry out international arbitration activities. Eligible foreign arbitration practitioners can open multi-currency free trade accounts and enjoy financial services related to their domestic employment and life, as well as cross-border services related to overseas healthcare, children’s education, etc.

In terms of entry and exit, Article 32 stipulates that foreigners who come to Shanghai to participate in arbitration activities can apply for port visas with court hearing notices or invitation letters. Domestic arbitrators who go abroad to participate in arbitration activities can also enjoy convenient arrangement in visa application.