Issue 27

Shanghai Weekly Bulletin

No. 2, 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.SAFE Issues Trial Measures for Banks to Develop Foreign Exchange Business  

【Keyword：Banks' Development of Foreign Exchange Business】

 

The State Administration of Foreign Exchange (SAFE) recently released the Measures for Banks to Develop Foreign Exchange Business (for Trial Implementation). The Measures have 34 articles in six chapters, which include General Provisions, Internal Control, Customer Due Diligence and Classification of Foreign Exchange-related Compliance Risks, Ongoing Foreign Exchange Business Review, Monitoring and Handling of Risky Foreign Exchange Transactions, and Supplementary Provisions. The document took effect on January 1, 2024.

 

Source: SAFE

https://www.safe.gov.cn/safe/2023/1229/23737.html

 

2. China Issues Revised Guidelines for Deregistration of Enterprises

【Keyword：Deregistration of Enterprises】

 

The State Administration for Market Regulation (SAMR), together with the General Administration of Customs (GAC) and the State Taxation Administration (STA), recently released the Guidelines for Deregistration of Enterprises (2023 Revision). The revised guidelines cover six parts, including basic procedures for enterprises to exit the market, causes for enterprise deregistration, enterprise liquidation process, procedures for enterprise deregistration, guidelines for handling deregistration under special circumstances, legal responsibilities for deregistration and other rules.

 

Source: SAMR

https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/djzcj/art/2023/art_1cda5f346be248e799a3454a93821aa3.html

 

【Shanghai】

1. Shanghai Vows to Boost Online New Economy

【Keyword：Online New Economy】

 

The General Office of the Shanghai Municipal People's Government recently released the Several Policy Measures of Shanghai on Promoting Healthy Development of the Online New Economy. The document proposes 20 measures in six aspects, including cultivating digital economy business entities, building livable and business-friendly carrier spaces, creating new infrastructure to support productivity growth, developing open application scenarios for new business formats to flourish, gathering elements of innovation to stimulate industrial vitality, and building safeguards for industrial prosperity and healthy development. The document 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/nw12344/20240104/79e4b125a91d4a45a6867e2ba515be72.html

 

2. Shanghai Introduces Measures for Accelerated Building of the City into an International Legal Service Center

【Keyword：Legal Services】

 

The General Office of Shanghai Municipal People's Government recently issued the Several Measures on Leveraging the Functions and Advantages of Shanghai, Strengthening the Brands of Law Firms and Accelerating the Building of the City into an International Legal Service Center. The document proposes a total of 21 measures in four aspects, including giving full play to the city's functions and advantages to enhance the international competitiveness of its legal services; taking actions to attract and nurture talents to enhance the brand influence of Shanghai law firms; increasing the supply of policies and systems to gather high-end legal professionals from around the world; and optimizing and innovating the governance of law firms to spur fresh momentum in the legal service industry. The document 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/nw12344/20240104/ff6cf3b2b1324e1895bbea934d44cbd3.html

 

3. Shanghai Unveils Measures to Boost High-quality Development of Livestreaming E-commerce

【Keyword：Livestreaming E-commerce】

  

Shanghai Municipal Commission of Commerce recently issued the Measures for the Creation and Evaluation of Livestreaming E-commerce Bases in Shanghai (for Trial Implementation). Consisting of 13 articles in four chapters, the document clarifies the procedures for the application, assessment, administration and evaluation of livestreaming e-commerce bases, in an effort to give full play to the industrial agglomeration role of livestreaming e-commerce bases and drive high-quality development of livestreaming e-commerce in Shanghai. It took effect on January 1, 2024 and will remain effective until January 1, 2026. 

 

Source: Shanghai Municipal Commission of Commerce

https://sww.sh.gov.cn/zwgkhsgwj/20240104/ea25db14159e437daedb91717bcb0120.html

 

4. Shanghai Issues Measures to Tighten Supervision and Administration of Food Safety in Online Catering Services

【Keyword：Online Catering Services; Food Safety】

 

Shanghai Municipal Administration for Market Regulation recently issued the Measures for the Supervision and Administration of Food Safety in Online Catering Services (for Trial Implementation). With a total of 22 articles, the Measures are applicable to third-party platform providers of online catering services and food operators that provide catering services through third-party platforms and their proprietary websites within the jurisdiction of Shanghai. The Measures will take effect on February 1, 2024 and remain effective until January 31, 2026. 

 

Source: Shanghai Municipal Administration for Market Regulation

https://scjgj.sh.gov.cn/007/20240102/2c984a728ca97cb4018cc9748ae33805.html

 

5. Shanghai Regulates Work on Tax-related Advance Rulings

【Keyword：Tax; Advance Rulings】

 

The Shanghai Municipal Tax Service, State Taxation Administration recently formulated the Measures of Shanghai Municipal Tax Service for the Administration of Tax-related Advance Rulings (for Trial Implementation). With a total of 26 articles in seven chapters, the Measures define "tax-related advance ruling" as a tax service provided by a tax agency upon an application of an enterprise for explanations of tax laws and regulations that are applicable for complex tax-related matters expected to occur in the future based on the principle of mutual trust between tax authorities and corporate taxpayers and in accordance with existing tax laws and regulations, and the service is to notify the enterprise of the applicable laws and regulations in writing.  

 

Source: Shanghai Municipal Tax Service

https://shanghai.chinatax.gov.cn/zcfw/zcfgk/zhsszc/202312/t469904.html

 

One Week in Shanghai

【Forum & Exhibition】

1. ICCM 2023 Opens in Shanghai

【Keyword：International Congress of Chinese Mathematicians】

  

The International Congress of Chinese Mathematicians 2023 (ICCM 2023) opened at Fudan University on January 2, 2024. Some 500 of the world's top mathematicians, scholars, and representatives of university teachers and students gathered together to discuss important results and latest developments in pure mathematics, applied mathematics, and interdisciplinary fields. On the afternoon of the same day, the Shanghai Institute of Mathematics and Interdisciplinary Studies was inaugurated.

 

Source: Fudan University

 

【Competitive Event】

1. 2023 Shanghai International Computational Biology Innovation Competition - Drug Screening AI Algorithm "Ling Yue" Challenge Launched

【Keyword：International Computational Biology】

 

The 2023 Shanghai International Computational Biology Innovation Competition - Drug Screening AI Algorithm "Ling Yue" Challenge, which was launched recently, is open for registration until February 29, 2024. So far more than 900 contestants have signed up to participate in the competition. Eligible winning teams will receive special support from the Action Plan for Sci-tech Innovation issued by the Shanghai Municipal Commission of Science and Technology.

 

Source：Shanghai Municipal Commission of Science and Technology

 

【Culture & Art】

1. Dialogue with Da Vinci - Special Exhibition of Renaissance and Oriental Aesthetics Opens at Shanghai Museum

【Keyword：Art Exhibition】

 

The Dialogue with Da Vinci - Special Exhibition of Renaissance and Oriental Aesthetics recently opened at Shanghai Museum. This is the first original exhibition of dialogue between Eastern and Western painting art launched by the Shanghai Museum. It is also the largest exhibition of authentic works of Leonardo Da Vinci in China to date. The exhibition will last until April 14, 2024.

 

Source: Shanghai Tourism

 

2. Encountering the Marquis of Haihun - Exhibition of Fine Cultural Relics from the Tomb of Liu He in the Western Han Dynasty

【Keyword：Exhibition of Cultural Relics】

 

"Encountering Haihun Marquis - Exhibition of Fine Cultural Relics from the Tomb of Liu He in the Western Han Dynasty", which was jointly curated by Minhang Museum and Nanchang Han Dynasty the Marquis of Haihun Museum, has officially opened to the public. 110 exquisite cultural relics unearthed from the tomb of the Marquis of Haihun Liu He will all make appearance. The exhibition will last until May 19, 2024.

 

Source:Shanghai Tourism

 

3. January Performance Recommendations at Shanghai Grand Theater Arts Group 

【Keyword：Shanghai Grand Theater】

 

In the first month of 2024, the theaters and troupes of the Shanghai Grand Theater Art Group are putting on great shows! "Matilda", "Natasha, Pierre and the Great Comet of 1812", "Don Juan", etc. will be staged one after another. In addition, a series of aesthetic education activities will also be launched in major theaters.

 

Source: Shanghai Tourism

 

【Corporate Activities】

1. Production Projects of Kenvue and Perfetti Van Melle Confectionery Break Ground 

【Keyword：Kenvue; Perfetti Van Melle Confectionery】

 

Minhang District held a centralized signing and groundbreaking ceremony for key industrial projects on January 2, 2024. Eight key industrial projects broke ground, including the first phase of capacity expansion project of Kenvue Johnson & Johnson Pharmaceutical Co., Ltd. in Shanghai and the extruded candy capacity expansion project of Perfetti Van Melle Confectionery (China) Co., Ltd. 

 

Source:Minhang Today

 

2. 21 Key Enterprises and Institutions Sign Agreements to Make Presence in Minhang Area of Hongqiao International CBD 

【Keyword：Hongqiao International CBD】

 

A centralized signing ceremony for key projects in the Minhang area of Hongqiao International Central Business District (CBD) has been recently held. 21 key enterprises and institutions were introduced to the area. Their projects cover such fields as international trade, low-carbon new energy, digital economy and professional services, and they are helpful for Minhang to accelerate buildup of a modern industrial system.

 

Source: Shanghai Municipal Development and Reform Commission

 

Q&A

Q1: Officials of the State Administration of Foreign Exchange (SAFE) answer reporters' questions regarding the Measures for Banks to Develop Foreign Exchange Business (for Trial Implementation) - What measures are introduced by the document to promote cross-border trade and facilitate investment and financing?

 

A1: According to the Measures, banks should adopt differentiated review measures based on a customer's foreign exchange compliance risk level and overall judgment of business risks. Firstly, it provides a general framework for the facilitation of foreign exchange business, and unify and simplify the process, and high-quality customers can enjoy the existing facilitation measures for current account and capital account items. Secondly, banks can handle foreign exchange business for high-quality customers based on customer instructions, giving banks more room for product innovation. Thirdly, policy application is flexible. Banks and enterprises can choose to apply the Measures or relevant foreign exchange management laws and regulations. Fourthly, foreign exchange risk screening and identification are carried out based on the system, and subsequent monitoring is more accurate, with "no violations and no disturbance" to customers. Banks that participated in pilot operations in the early stage reported that after implementation of the foreign exchange business reform, high-quality enterprises have become more efficient in handling foreign exchange business, and banks' foreign exchange services have been effectively improved.

 

Source: ：State Administration of Foreign Exchange

https://www.safe.gov.cn/safe/2023/1229/23735.html

 

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]

 

Fifth Highlight: Systematic Supervision Mechanism

A scientific and well-established supervision mechanism plays an important role in the long-term and healthy development of arbitration. Articles 24 to 27 of the Shanghai Regulation on Advancing the Building of an International Commercial Arbitration Center (the Regulation) improve the supervision and management of the arbitration industry from four aspects, and establish a systematic supervision mechanism.

The first of the four aspects is judicial review. Article 24 begins with improving the court's judicial review mechanism for arbitration cases, and stipulates that the court shall conduct judicial review to determine the validity of foreign-related arbitration cases and ad hoc arbitration cases, applications for the revocation of arbitral awards, and the enforcement or non-execution of arbitral awards, to provide high-quality and efficient judicial protection for the building of an international commercial arbitration center. It is worth noting that arbitration cases to be reviewed by the court system in Shanghai include not only foreign-related arbitration and ad hoc arbitration cases managed by Shanghai arbitration institutions, but also corresponding cases managed by overseas arbitration business institutions.

The second is administrative supervision. Article 25 states that the municipal judicial department shall guide and supervise arbitration work in accordance with the law, and request arbitration institutions to rectify irregular activities, thereby improving the quality and efficiency of management and enhancing the credibility of arbitration institutions.

The third is internal and external supervision. Article 26 requires arbitration institutions to establish and improve internal supervision mechanisms and be subject to public scrutiny. Internally, arbitration institutions need to strengthen the supervision and management of arbitrators, arbitration secretaries and other staff; externally, they should disclose necessary information such as arbitration rules, arbitrator rosters, service procedures and charges, and publish annual business reports within the reasonable scope and be subject to external supervision from the public.

The fourth is industry self-discipline. Article 27 emphasizes the role of Shanghai's arbitration industry association, requiring the association to strengthen industry self-discipline and integrity, so as to set a sound order and ensure healthy development of the industry.