Issue 17

Shanghai Weekly Bulletin

No. 4, October 2023

 

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. China to Set up a Pilot Zone for Silk Road E-commerce Cooperation in Shanghai 

【Keywords:Silk Road E-commerce; Pilot Zone for Cooperation】

 

 

The State Council has approved establishing a pilot zone for Silk Road e-commerce cooperation in Shanghai, according to the Reply of the State Council on the Establishment of a Pilot Zone for Silk Road E-commerce Cooperation in Shanghai. In the Reply, the State Council urges Shanghai to exert a pioneer role in making breakthroughs in reform and opening-up, aligning with high-standard international economic and trade rules, exploring institutional innovation, expanding opening-up in e-commerce field, building a new hub for international cooperation of digital economy, and boosting the high-quality development of the Belt and Road cooperation.

 

Source: website of the Chinese government

https://www.gov.cn/zhengce/content/202310/content_6911060.htm

 

2. Convention Abolishing the Requirement of Legalization for Foreign Public Documents to Take Effect in China on November 7

【Keywords:Foreign Public Documents; Requirement of Legalization】

 

 

The Convention Abolishing the Requirement of Legalization for Foreign Public Documents will enter into force in China on November 7, 2023, from which public documents issued by China to be used in other member countries of the Convention will only need to be apostilled before being sent to other member countries for use, and consular legalization will not be required. Similarly  public documents issued by member countries of the Convention can be used in China directly after being apostilled by the competent authorities of the member countries, and there is no need to seek consular legalization. 

 

Source: Ministry of Foreign Affairs

https://www.fmprc.gov.cn/wjbxw_new/202310/t20231023_11165858.shtml

 

【Shanghai】

 

1. Shanghai Issues Action Plan to Build High-end Biomanufacturing Industry Cluster

【Keywords:Biomanufacturing Industry】

 

 

The General Office of the Shanghai Municipal People's Government recently issued the Action Plan on Accelerating Synthetic Biology Innovations and Building a High-end Biomanufacturing Industry Cluster in Shanghai (2023-2025). According to the Plan, synthetic biology technology is an important engine for driving the development of high-end manufacturing industry in Shanghai, and will play a leading role in serving the country's global cooperation and competition in the bioeconomy. The Plan also proposes three development priorities, nine key tasks, and six safeguard measures. 

 

Source: Shanghai Municipal People's Government

https://www.shanghai.gov.cn/nw12344/20231024/a69afba35d014fd4aa78a3ea20c53fa3.html

 

2. Shanghai Issues Measures for the Evaluation and Management of High-quality Incubators

【Keywords:High-quality Incubators】

 

 

Shanghai Municipal Commission of Science and Technology and other two authorities jointly issued on October 23, 2023 the Measures for the Evaluation and Management of High-Quality Incubators in Shanghai (for Trial Implementation), which consists of 23 articles in six chapters. The chapters include general provisions, incubator construction conditions and procedures, routine management and supervision, supportive content and methods, performance evaluation details and result application, and supplementary provisions. 

 

Source: Shanghai Municipal People's Government

https://www.shanghai.gov.cn/nw12344/20231025/eb87b34b440342d2ae5d62213e17414f.html

 

3. Shanghai Introduces New Measures to Enhance Financial Service Capabilities for Sci-tech Innovations

【Keywords:Sci-tech Innovations; Financial Services】

 

 

The People's Bank of China Shanghai Head Office, Shanghai Municipal Commission of Science and Technology and other authorities in Shanghai recently held a joint conference on enhancing financial service capabilities for sci-tech innovations, during which the Shanghai Special Action Plan for Enhancing Financial Service Capabilities for Sci-tech Innovations was released, and the Shanghai Sci-tech Innovation Financial Alliance was established. The Plan introduces 20 measures in five aspects, which include promoting the establishment of organizational structure, internal management system, and product system that are suitable for tech-based enterprises in banking and insurance institutions; increasing the depth and breadth of the application of technology insurance, and improving the quality and effect of intellectual property pledge financing; supporting the development and growth of tech-based enterprises through multi-level capital markets; fully leveraging the role of policy guidance; strengthening the connection between banks and enterprises, and working effectively in policy promotion and interpretation.

 

Source: Pudong Release

 

 

One Week in Shanghai

 

【Forums and Exhibitions】

 

1. 6th China International Import Expo to Open Soon

【Keyword: China International Import Expo】

 

 

The 6th China International Import Expo (CIIE) will be held in Shanghai on November 5-10, 2023. The State Council Information Office held a press conference on October 23 to introduce relevant information. Guests from 154 countries, regions, and international organizations are expected to attend the expo. 69 countries and three international organizations have confirmed their participation in the national exhibition. Honduras, Kazakhstan, Serbia, South Africa, and Vietnam will be this year's countries of honor. The Chinese Pavilion will expand to 2,500 square meters, the largest in the history of the expo, and an exhibition on the 10th anniversary of the establishment of China's free trade zones will be set up under the theme "Providing New Opportunities for World Development Through New Progress in Chinese Modernization". 

 

Source: Xinhuanet 

http://www.news.cn/expo/20231024/be6a91fdf78f46d494329e2d82b8141f/c.html

 

2. 2023 WLA Forum - Life Science Conference to Be Held Soon

【Keyword: Life Science Conference】

 

 

The 2023 World Laureates Association Forum (2023 WLA Forum) - Life Science Conference will be held on November 7. The Life Science Conference is one of the three thematic conferences of the World Laureates Forum, and it includes one keynote forum and two thematic forums. The keynote forum is themed on "Science Leads Transformation - Building a Community of Shared Future for Human Health", and the two thematic forums are dedicated to innovative drugs and cancer. 

 

Source: Shanghai Lin-gang

 

【Culture & Art】

 

1. 17th Shanghai Youth Art Exhibition Opens 

【Keyword:Youth Art Exhibition】

 

 

"Like Morn in the Day - the 17th Shanghai Youth Art Exhibition" opened on October 20, 2023, and will last until November 29. The exhibition received a total of 2,256 pieces/sets of works from young creators from 28 provinces, municipalities, autonomous regions, and overseas regions. After expert evaluation, a total of 169 pieces/sets of works were selected for public display at the exhibition.

 

Source: Shanghai Tourism

 

2. 2023 Autumn IS Kicks off

【Keyword: International Theater Season】

 

 

The first Autumn International Theater Season (2023 Autumn IS) kicked off at the YOUNG Theater on the evening of October 20, 2023. A total of 22 theater performances from the UK, France, Germany and New Zealand will be staged during the season, including one for world premiere, three for premiere in China and two for premiere in Shanghai. The performances span from musical, physical theater to puppetry and contemporary dance, and three of them will be presented during the 22nd Shanghai International Arts Festival.

 

Source: Shanghai Tourism

 

【Corporate Activities】

 

1. Umicore to Open Its First China R&D Center in Waigaoqiao

【Keyword: Umicore】

 

 

At a signing ceremony on October 24, 2023, Umicore, one of the world’s top 50 chemicals companies, announced that it will build its first China R&D center in Waigaoqiao. With a total investment of 15 million euros, the facility is expected to become operational in the first quarter of 2025. The center will be a platform for Umicore to conduct R&D and testing activities, and help its business units establish closer relationships with Chinese customers and partners. 

 

Source: Pudong Release

 

2. Pudong Shipping Office and Capital Link Sign MOU on Strategic Partnership

【Keywords:Capital Link】

 

 

At the 7th Annual Capital Link International Shipping Forum Pudong-Shanghai, China held on October 23, 2023, Pudong Shipping Office and Capital Link signed a memorandum of understanding on strategic partnership. Both sides will make full use of their respective resources and market influence to attract international shipping finance companies, ship owners and professional service institutions to invest and develop business in Pudong.

 

Source: Pudong Release

 

【Training】

 

1. Shanghai to Provide Training for the Restructuring and Listing of 100 SMEs 

【Keywords:Restructuring and Listing of Small and Medium-sized Enterprises】

 

 

To accelerate the development of a modern industrial system, strengthen the leading role of high-end industries, and incubate more tech-based enterprises, Shanghai Investment Promotion Service Center plans to hold the "Pujiang Light" Training Series (42nd session) on November 15-17, 2023 to facilitate the restructuring and listing of 100 small and medium-sized enterprises (SMEs). The training aims to provide targeted listing services for enterprises and to support high-quality firms to get access to the Shanghai Stock Exchange STAR Market and other capital markets.

 

Source: Shanghai Municipal Commission of Economy and Informatization

 

 

Q&A

 

Q1: An official from the MOFCOM Department of E-commerce and Informatization answered reporter's questions on the 2nd Global Digital Trade Expo held by the State Council Information Office. One of the questions was that "can you introduce the progress of building a pilot zone for Silk Road e-commerce cooperation?"

 

A: The State Council has approved a plan to build a pilot zone for Silk Road e-commerce cooperation in Shanghai, and the plan will focus on three priorities. 

 

The first priority is to explore institutional innovation. By aligning with high-standard international economic and trade rules, we can explore innovative pilot projects in expanding international data services, promoting trade digitalization and facilitation, and facilitating information sharing and connectivity among partner countries. We should propose more practical measures, provide more institutional public goods for the development of Silk Road e-commerce, and create a number of institutional openness achievements that have a demonstrative and leading role.

 

The second priority is to create a favorable environment for pioneering and trial implementation. Leveraging the advantages of Shanghai's reform, opening-up, and institutional innovation, we will establish central functional areas and radiating areas in the Shanghai Pilot Free Trade Zone and Hongqiao CBD. We will build cross-border e-commerce distribution centers, optimize service supply chains and professional service offerings, and establish a national pavilion of Silk Road e-commerce. We will gather a group of internationally competitive e-commerce enterprises and create a number of regional carriers to build a new engine for international economic and trade cooperation. 

 

The third priority is to deepen international exchanges and cooperation. We will establish the Silk Road e-commerce international think tank alliance and digital technology application center in accordance with the needs of partner countries. We will push for mutual promotion, platform cooperation, and resource sharing, and build a number of public service platforms to promote common development of partner countries. These platforms will provide service support for reciprocal cooperation on Silk Road e-commerce.

 

In the next stage, the Ministry of Commerce will conscientiously implement the requirements of the State Council, and work with relevant departments to strengthen overall coordination and supervision of the Silk Road e-commerce cooperation zones according to their respective responsibilities. In particular, Shanghai will play a leading role in reform and opening up, taking the lead in aligning with high-standard international economic and trade rules, exploring institutional innovation, expanding opening-up in e-commerce field, and building a new hub for international cooperation of digital economy, and boosting the high-quality development of the Belt and Road cooperation.

 

Source: State Council Information Office

http://www.scio.gov.cn/live/2023/32848/tw/

 

 

Expert Perspective

 

Compliance Standards for Outbound Transfer of Data May Be Subject to Important Adjustments – An Interpretation of the Regulation on Standardizing and Promoting Cross-border Data Flow (Exposure Draft)

 

By: Wu Weiming, Liu Yundong (AllBright Law Offices)

[Continuing with the last issue]

 

Second point: More clarity on the basis for the recognition of important data 

 

According to Article 2 of the Regulation on Standardizing and Promoting Cross-border Data Flow, "If the data has not been notified or publicly announced by relevant departments or regions as important data, the data processor does not have to apply for a security assessment on outbound transfer of the data."

 

That is to say, if there are no publicly available important standards on data recognition in an industry and no notification from regulatory authorities, it can be considered that there is no obligation to apply for a security assessment on cross-border data transfer. This provision also provides a basis for reducing the uncertainty on important data recognition.

 

Third point: Specific and necessary circumstances do not need to be subject to three pathways

 

According to Article 4 of the Regulation on Standardizing and Promoting Cross-border Data Flow, the following circumstances do not need to be subject to three pathways: (1) It is necessary to provide personal information to overseas parties for the purpose of entering into or performing contracts as an individual party, such as cross-border shopping, cross-border remittance, flight and hotel reservations, visa applications, etc.; (2) It is necessary to provide employees' personal information to overseas parties for the implementation of labor regulations and collective contracts; (3) Under emergency situations, it is necessary to provide personal information to overseas parties for the protection of personal and property safety of individuals.

 

The above situation also falls under the exemptions of the second item and part of the fourth item of Article 13 of the Personal Information Protection Law. These situations have their own special characteristics and provide clear benefits to individuals. If data processing activities are restricted for the sake of excessive emphasis on the protection of personal information, it may have a negative impact on individuals' rights and interests. Therefore, the regulation stipulates that these situations do not need to be subject to the three pathways. However, when this provision is applied, companies should pay special attention to the prerequisite condition of "necessity" in all of the above situations.