Shanghai Weekly Bulletin

lssue 1,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. Rules on Regulating and Promoting Cross-border Data Flow under Comment 

【Keyword： Cross-border Data Flow】

The Cyberspace Administration of China (CAC) issued on September 28, 2023 the Rules on Regulating and Promoting Cross-border Data Flow (Exposure Draft) for public comment until October 15, 2023. With 11 articles, the draft rules clarify several circumstances under which procedures such as declaration of security assessment for outbound transfer of data and conclusion of a standard contract for outbound transfer of personal information are not required.

Source: CAC

http://www.cac.gov.cn/2023-09/28/c_1697558914242877.htm

2. Three Authorities Release Guidelines to Crack down on Cyber Violence 

【Keyword：Cyber Violence; Illegal and Criminal Activities】

The Supreme People’s Court, the Supreme People’s Procuratorate and the Ministry of Public Security recently issued the Guidelines on Lawful Crackdown on Illegal and Criminal Activities of Cyber Violence. The document puts forward 20 guiding opinions from three aspects: fully understanding the harm of cyber violence to the society, safeguarding citizens' legitimate rights and interests and maintaining sound order in the cyberspace; accurately applying the law, severely punishing illegal and criminal activities of cyber violence in accordance with the law; smoothing the litigation process, and providing timely and effective legal remedies.

Source: Supreme People’s Court

https://www.court.gov.cn/zixun/xiangqing/412992.html

3.SPC Releases Typical Cases Related to “Belt and Road” Initiative 

【Keyword：Belt and Road Initiative; Typical Cases】

The Supreme People’s Court (SPC) released on September 27, 2023 the fourth batch of typical cases related to the “Belt and Road” initiative. The 12 typical cases involve multiple types of foreign-related commercial disputes such as international sales of goods, independent letters of guarantee, letters of credit, audit infringement compensation, insurers' subrogation claims, financial derivatives transactions, legal service contracts, equity transfers, etc. There are also cases of recognition and enforcement of Hong Kong arbitral awards and foreign civil judgments. They are common cases in the promotion of the “Belt and Road” initiative, and the legal disputes involved are of highly representative.

Source: Supreme People’s Court

https://www.court.gov.cn/zixun/xiangqing/413282.html

【Shanghai】

1. International Services Shanghai Released 

【Keyword：International Services Shanghai】

The Foreign Affairs Office of the Shanghai Municipal People's Government and the Shanghai People's Association for Friendship with Foreign Countries released the International Services Shanghai on September 28, 2023. The handbook offers practical policy information and service information that foreign nationals care about, and is comprised of four sections: “Shanghai Essentials”, “Living in Shanghai”, “Exploring Shanghai” and “Service Directory”.

Source: Shanghai Release

2. Shanghai Issues Action Plan to Drive Breakthrough in Key Blockchain Technologies 

【Keyword：Blockchain】

The Shanghai Municipal Commission of Science and Technology issued on September 26, 2023 the Special Action Plan of Shanghai for Making Breakthroughs in Key Blockchain Technologies (2023-2025). The Action Plan targets three directions, namely new system architecture, resource scheduling and control, and trust enhancement to carry out organized research, promote the performance enhancement of the blockchain system, the optimization of the development and operation environment, and the improvement of service support capabilities, and support the new generation of open-licensed chain technology.

Source: Shanghai Municipal Commission of Science and Technology

https://stcsm.sh.gov.cn/zwgk/ghjh/20230927/59bc624577744e40885e547c2e0743fe.html

3.Pudong Releases Action Plan to Accelerate Cultivation of High-end Biomanufacturing Industry Clusters

【Keyword：High-end Biomanufacturing Industry】

The Action Plan of Pudong New Area on Accelerating Cultivation of High-end Biomanufacturing Industry Clusters was released on September 25, 2023. According to the Plan, based on the industrial foundation and conditions of Pudong New Area, as well as the industry characteristics and development stage of biomanufacturing, Pudong plans to attract and cultivate ten industry leaders and leading companies, and add three to five listed enterprises, 50 start-ups, and ten R&D centers at district level or above by the end of 2025. Pudong will also introduce at least three top scientists and teams, build three to five high-capacity innovation carriers and common service platforms, achieve breakthroughs in some key technologies and equipment materials, and at the same time facilitate preliminary construction of a cross-regional innovation network and market access for biomanufacturing products, promote demonstration application and provide other policy and institutional guarantees.

Source: Pudong Release

4. Shanghai to Implement Temporary Price Interventions on Hotels and Ride-hailing Services During China International Import Expo

【Keyword：China International Import Expo; Price Interventions】

Six departments including the Shanghai Municipal Development and Reform Commission issued on September 26, 2023 the Circular on Implementing Temporary Price Interventions During the Sixth China International Import Expo. According to the Circular, during the sixth CIIE, temporary price intervention measures will be implemented on the city’s hotel room prices, ride-hailing fares, and public parking lots with market-adjusted prices.

Source:Shanghai Municipal Development and Reform Commission

https://fgw.sh.gov.cn/fgw_jjjctk/20230928/bb75a2b947fc4e7ab93279cc5e637594.html

One Week in Shanghai

【Culture & Art】

1. Shanghai Splendor: Shanghai Realistic Art Creation Project Exhibition Opens at China Art Museum 

【Keyword：Art Creation】

The Shanghai Splendor: Shanghai Realistic Art Creation Project Exhibition will open to the public at the China Art Museum (Shanghai Art Museum) from September 28 to December 18, 2023. The exhibition is comprised of five sections: City of Faith, City of Beauty, City of Livability, City of Warmth, and City of Openness, which highlights Shanghai’s spirit of “inclusiveness, pursuing excellence, open-mindedness, and modesty” as well as Shanghai's character of “openness, innovation and inclusiveness”, to promote Shanghai as a city of the people and demonstrate its glamorous splendor.

Source: Shanghai Tourism

2. “Monet & Friends” Global Immersive Light & Shadow Exhibition Lands in Shanghai 

【Keyword：Light & Shadow Exhibition】

The Monet & Friends - a global tour of immersive light & shadow exhibition – has come to the World Expo Museum to commemorate the 60th anniversary of the establishment of diplomatic ties between China and France. The exhibition lasts from September 29, 2023 to January 7, 2024. 

Source: Shanghai Release

3. Shanghai International Puppet Festival Comes Back

【Keyword：Puppet Festival】

The Shanghai International Puppet Festival launched the first “International Fine Puppet Art Exhibition” with the theme of “World on the Fingertips” in September. The festival will last through December. Over the three months, outstanding puppet works from several countries and regions will be staged.

Source: Shanghai Huangpu

4. 2024 Spring/Summer Shanghai Fashion Week Kicks off

【Keyword：Shanghai Fashion Week】

The 2024 Spring/Summer Shanghai Fashion Week kicked off on October 8, 2023. It is expected to stage some 100 new product release events. Fashion trade fairs are held across central urban areas at the same time, presenting some 1,000 high-quality fashion brands. Thematic activities related to hot topics such as environmental protection, women's power, and cultural inheritance will also be presented. It is worth mentioning that the Shanghai Fashion Week will upgrade the fashion weekend section based on the principle of “fashion serves the people” to launch a people-friendly fashion carnival, and create featured consumption experience to boost the fashion economy.

Source: Shanghai Release 

【Corporate Activities】

1. Honeywell Reaches Partnership with Waigaoqiao Group

【Keyword：Honeywell】

Honeywell recently reached a partnership with Shanghai Waigaoqiao Free Trade Zone Group Co., Ltd. (Waigaoqiao Group) and signed a cooperation agreement with Shanghai Sunland Waigaoqiao Business Operation Center Co., Ltd., a subsidiary of Waigaoqiao Group. According to the agreement, Honeywell will leverage its mature solutions in the field of smart buildings and its extensive experience in digital operations to design and build a customized operation and management platform for Waigaoqiao Group to manage carbon emissions.

Source: Pudong Release

Q&A

Q1: Leaders of Shanghai Putuo District take questions at the 14th municipal government press conference on “High-quality Development in Shanghai” - what achievements have been made by Putuo District in optimizing industrial structure and cultivating key and characteristic industries? What measures will be taken to speed up the construction of a modern industrial system?

A: Industry is the cornerstone of regional development and the key to driving high-quality economic development. Putuo District has always adhered to the principle of establishing a strong foundation for industrial development and becoming a strong industrial powerhouse. The modern service industry has developed rapidly since 2021, accounting for 61.5% of the district’s tax revenue in 2022, and has become the biggest engine for regional economy. At the same time, in order to follow the trend of industrial change, we have designated intelligent software, R&D services, financial technology and life and healthcare as four key industries, and added them to the city's industrial map. We have proposed the “411 industry doubling” plan to realize the transformation and expansion of the four industries, and inject perpetual impetus to drive high-quality development of regional economy. In the next stage, we will strive to upgrade the industrial layout, optimize the industrial structure, and build a modern industrial system consistent with Putuo's development reality. We will work on three priorities.

The first is to strengthen key industries. We would stick to the direction of developing high-end sectors with high added-value, promote the four industries to leapfrog from local advantages to overall advantages, and from general advantages to obvious advantages, so that they can become the main engine to power regional economic growth. For example, in the field of intelligent software, we have 4,800 companies in the district. We have built Tiandi Software Park, and cultivated leading software companies such as Lazars, Polk City, and 360. In the next stage, we We will keep a close eye on the development of new-generation information technologies, explore high value-added industry chains, attract intelligent software companies to be headquartered in Putuo, and enhance the overall industry capabilities.

The second is to develop featured industries. On one hand, we carry out industry research, and continue to strengthen and extend the industry chain. Based on our characteristics, we will give full play to the role of carriers such as the Municipal Cybersecurity Industry Demonstration Park and the Municipal Digital Advertising Park, and target industries that already have first-mover advantages such as cybersecurity, digital advertising, and local life services, so as to reinforce our presence in some key sectors and industry chains. On the other hand, we put industry planning in the first place to develop industry clusters. We push for coordinated development of key industries, key regions, and key platforms. Backed by the abundant resources of the “One Belt, One Center, One City” and the “China Wushu” tech innovation platform, we will provide policy support and arrange spatial layout to enhance industry concentration and visibility. For example, we have attracted leading digital advertising companies such as Leo, Drama Star and Kuaishou to set foothold in the Zhenru area, and we plan to bring other large companies to the same area.

The third is to cultivate industries that have bright prospects in the future. We will push ahead to advance digital industrialization, optimize the “3+5+X” industrial policy system, upgrade the modern service industry, and accelerate development of strategic emerging industries. We would target the metaverse, artificial intelligence, and intelligent connected cars, and identify the “nuclear explosion points” to power future growth. Last month, the Shanghai event of the Global Metaverse Conference was held in Putuo. We released the Metaverse policy package, and signed partnership agreements with East China Normal University, China Unicom Shanghai Branch, and Lisuan Technology. “Yuanshang River” application scenarios have received widespread attention. We will make greater efforts to enhance the concentration of regional innovation and provide a better ecosystem for industrial development in the future.

Source: Shanghai Release

Expert Perspective

If foreign employees request to pay social security, can the company say no by claiming “they had agreed not to pay”?

By: Pan Jihong, Kong Qi, Chen Ke, Xu Xiangzhi (Dentons Shanghai Office)

A: Even within the validity period of Shanghai Bureau of Human Resources and Social Security (2009) No. 38 Document (Valid before August 15, 2021), because the superior laws Social Insurance Law and the Interim Measures stipulate that enterprises “should make social security contributions for foreigners”, it is difficult to confirm the validity of the agreement between the employer and the employee on “not to pay social security”, and the defense cannot be established. Since the No. 38 Document has been nullified since August 15, 2021, we learned from Shanghai Bureau of Human Resources and Social Security that there is now law or regulation to substitute the document or extend its validity. The bureau’s opinion is that corporate employers should make social security contributions for their foreign employees according to the Social Insurance Law and the Interim Measures. 

Therefore, if foreign employees request to pay social security, the “agreement not to pay social security” between the company and the employees will be deemed invalid because it violates the provisions of related laws and regulations, and the company cannot defend its claim that they had agreed not to pay.