Shanghai Weekly Bulletin

lssue 4,September 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.

Catalogue

1

Laws and Regulations

【National】

・China Optimizes Visa Application Procedure for Foreigners 

・Revised Measures for the Filing of Commercial Franchising under Comment

【Shanghai】

・Shanghai Unveils Measures to Boost Reform and Innovation in the Shanghai Pilot Free Trade Zone and the Lin-gang Special Area

・Shanghai Issues Plan to Promote Technological Innovation and Industrial Development of Gene Therapy

・ Shanghai Announces Measures to Optimize Business Environment and Support High-quality Economic Development

・Outline of Green Shipping Corridor Implementation Plan Between Ports of Shanghai and Los Angeles Released 

2

One Week in Shanghai

【Forums & Exhibitions】

・The Sixth WLA Forum to Open on November 6

【Culture & Art】

・Shanghai Urban Space Art Season 2023 to Open on September 24

・Beautiful Shanghai·Garden Lifestyle Festival 2023 Opens 

・ The Seventh Jing’an International Sculpture Project Opens 

【Corporate Activities】

・Roche Diagnostics China Unveils Technology Innovation Center 

3

Q&A

・Leaders of the Shanghai Municipal Commission of Commerce take questions from reporters at a press conference celebrating the tenth anniversary of the Shanghai Free Trade Zone. Over the past decade, what achievements have been made in terms of trade and investment liberalization and facilitation through institutional innovation in the Free Trade Zone? What are the plans for further aligning with international high-standard economic and trade rules and promoting institutional opening in the future?

4

Expert Perspective

・If an employer did not make social security contributions for foreign employees, can the foreign employees request retroactive contributions for the period they were employed? Is there a time limit for retroactive contributions?

Laws and Regulations

【National】

1. China Optimizes Visa Application Procedure for Foreigners 

【Keyword：Foreigners Traveling to China; Visa Application】

The Ministry of Foreign Affairs recently optimized the visa application forms for foreigners traveling to China. The optimization involves seven major items and 15 sub-items, which are mainly related to the applicant's education background, family members’ information, and travel history. It reduces the amount of text-based information to be filled out. For example, the applicants now only need to submit their travel history for a year instead of five years as previously required, and report their highest academic qualifications in terms of education background. As a result, the time required for applicants to fill the forms is significantly reduced, which makes the process of obtaining a visa to China more convenient. The new visa application forms were launched on September 20, 2023. 

Source: China Consular Affairs

2. Revised Measures for the Filing of Commercial Franchising under Comment 

【Keyword：Franchising】

The Department of Treaty and Law of the Ministry of Commerce released on September 21, 2023 the Measures for the Filing of Commercial Franchising (Revised Exposure Draft) to solicit public opinions until October 20, 2023. The revised draft deletes Paragraph 10, Article 6 of the old version that states “foreign-funded enterprises shall submit the Foreign-funded Enterprise Approval Certificate, which shall include the items of business conducted in the form of commercial franchising in the scope of business” and other clauses

Source: MOFCOM

【Shanghai】

1. Shanghai Unveils Measures to Boost Reform and Innovation in the Shanghai Pilot Free Trade Zone and the Lin-gang Special Area

【Keyword：Free Trade Ports; Institutional Opening-up】

The General Office of Shanghai Municipal People's Government recently issued the Implementation Plan for Shanghai to Enact Measures for Promoting Institutional Opening-up in Pilot Free Trade Zones and Free Trade Ports to Align with International High Standards. The Plan outlines 31 measures in seven aspects, with the goal of implementing various pilot measures in one year in such areas as trade in goods, trade in services, digital trade, temporary entry of business personnel, and business environment improvement.

Source: Shanghai Municipal People’s Government

https://www.shanghai.gov.cn/nw12344/20230921/39626f989993402aaaaaec1cb2e7620d.html

2. Shanghai Issues Plan to Promote Technological Innovation and Industrial Development of Gene Therapy

【Keyword：Gene Therapy】

Shanghai Municipal Science and Technology Commission, Shanghai Municipal Commission of Economy and Informatization and Shanghai Municipal Health Commission recently issued the Action Plan for Promoting Technological Innovation and Industrial Development of Gene Therapy in Shanghai (2023-2025). The Plan proposes 12 key tasks and eight safeguard measures in four areas, aiming to achieve breakthroughs in key and core technologies, enhance clinical research and translational capabilities, promote advances in production processes, optimize industrial development ecosystems, and improve Shanghai's capabilities as a source of innovation in gene therapy technologies and the capacity of industrial development.

Source: Shanghai Municipal Science and Technology Commission

https://stcsm.sh.gov.cn/zwgk/kjzc/zcwj/kwzcxwj/20230918/4aa520a0c50e400b86a6b8505b9a95c9.html

3. Shanghai Announces Measures to Optimize Business Environment and Support High-quality Economic Development

【Keyword： Business Environment; Economic Development】

Shanghai Public Security Bureau held a press conference on September 21, 2023 to report its efforts in optimizing business environment and facilitating high-quality economic development in the city. The bureau announced 30 measures in six fields, including protecting the legitimate rights and interests of market entities, deepening reforms related to streamlining administration, delegating powers, and improving services, strengthening industry services and supervisions, providing services to support major strategies, deepening regional cooperation, and enhancing the efficiency of services for citizens and enterprises.

Source: Police-Public Express Shanghai

4. Outline of Green Shipping Corridor Implementation Plan Between Ports of Shanghai and Los Angeles Released 

【Keyword：Shanghai Port; Los Angeles Port; Green Shipping】

The Outline of Green Shipping Corridor Implementation Plan Between Shanghai Port and Los Angeles Port was recently released. It was jointly drafted by Shanghai Port and Los Angeles Port. According to the Outline, starting from 2025, shipping company partners will deploy vessels on this corridor that have the capability for either low-carbon or zero-carbon emissions throughout their entire lifecycle.

Source: Shanghai Release

One Week in Shanghai

【Forums & Exhibitions】

1. The Sixth WLA Forum to Open on November 6

【Keyword：Scientist Forum】

The Sixth World Laureates Forum (The 6th WLA Forum) will take place from November 6 to 8 at its permanent venue in Shanghai's Lin-gang Special Area. The forum, themed on “Science Leads Transformation”, aims to leverage dialogues and exchanges to enhance international cooperation and promote the development of science. Approximately 300 people, including top scientists from overseas countries, academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering, senior scientists and outstanding young scientists from China and abroad will attend the forum. 

Source: Shanghai Lin-gang

【Culture & Art】

1. Shanghai Urban Space Art Season 2023 to Open on September 24

【Keyword：Space Art】

The Shanghai Urban Space Art Season 2023 (the fifth season) , which opened on September 24, will open to the public from September 25 until November 20. Some 20 exhibition areas across the city will interpret the theme of "Coexistence", showcasing Shanghai's advanced ecological development concepts and technological approaches, pushing for the establishment of an ecological network, and presenting the city as an eco-friendly space where "man and nature explore harmonious coexistence".

Source: Shanghai Release

2. Beautiful Shanghai·Garden Lifestyle Festival 2023 Opens 

【Keyword：Garden Lifestyle Festival】

As a key project of the Shanghai Tourism Festival, the "Beautiful Shanghai·Garden Lifestyle Festival 2023" opened on the morning of September 23 at the Miracle Garden, Pudong Riverside Park. The festival aims to explore new urban cultural and tourism spaces, and joins hands with Shanghai suburban parks and urban parks to launch a variety of exciting suburban leisure activities to meet the recreational needs of residents and tourists seeking ecological experiences in the suburbs. During the festival, 13 parks across the city will introduce a wide range of activities to attract citizens to explore different travel experience.

Source: Shanghai Tourism

3. The Seventh Jing’an International Sculpture Project Opens 

【Keyword：Sculpture】

The Seventh China Shanghai Jing’an International Sculpture Project will be held from September 20 until December 31, 2023 at the Jing'an Sculpture Park, presenting 42 works by 28 artists from 16 countries and regions. In addition to the main exhibition venue, the project will be displayed at nine extended areas to integrate art with local communities and bring a wonderful free visual feast to the public.

Source: Shanghai Tourism

【Corporate Activities】

1. Roche Diagnostics China Unveils Technology Innovation Center 

【Keyword：Roche Diagnostics】

Roche Diagnostics China held a ceremony on September 20, 2023 to commence the Technology Innovation Center (TIC). With a land area of 7,080 square meters, the facility is located in Jinqiao, Pudong, and it will achieve comprehensive upgrades in smart testing, service innovation, talent development, and customer experience. The TIC will also serve as an incubation center for Roche Diagnostics China's innovative technology solutions and digital initiatives. 

Source: Shanghai Business

Q&A

Q1: Leaders of the Shanghai Municipal Commission of Commerce take questions from reporters at a press conference celebrating the tenth anniversary of the Shanghai Free Trade Zone. Over the past decade, what achievements have been made in terms of trade and investment liberalization and facilitation through institutional innovation in the Free Trade Zone? What are the plans for further aligning with international high-standard economic and trade rules and promoting institutional opening in the future?

A: Over the past decade, the Shanghai Free Trade Zone has consistently adhered to institutional innovation as its core principle. It has persistently benchmarked against the highest standards and best practices, taking bold and discretionary measures. It has pioneered institutional innovations in the field of investment and trade, such as implementing China’s first Negative List for Foreign Investment Market Access, instituting a filing system for general overseas investment projects, and building high-standard “single-window” for handling international trade affairs. These groundbreaking initiatives have paved the way and accumulated valuable experience for the nation in promoting high-standard openness and aligning with international economic and trade rules. Through these institutional innovations, business entities at the Shanghai Free Trade Zone have become more active, attracting continuous influx of foreign capital. As a result, the economic scale and strength have consistently improved. Driven by the construction of the Free Trade Zone, as of the end of last year, nearly 19,000 foreign-funded projects had been set up at the Pudong New Area, with total registered foreign capital exceeding US$200 billion, and total actual foreign investment approaching US$75 billion. The value of cargo trade has grown from RMB1.5 trillion in 2013 to RMB2.5 trillion in 2022, representing a trillion-yuan increase over the course of a decade. These data suggest that the Shanghai Free Trade Zone has effectively served as a testing ground for comprehensive deepening of reforms and has successfully carried out its mission of setting an example and leading the way.

Steadily advancing institutional opening-up on rules, regulations, management and standards is a clear requirement and strategic deployment put forth by the Central Committee of the Communist Party of China. At a meeting of the CPC Central Politburo on April 28, it was pointed out that China will support eligible Free Trade Zones and Free Trade Ports in aligning with international high-standard economic and trade rules and leading in the reform and opening-up efforts. China is now pushing for accession to high-standard economic and trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). The requirements of these agreements align closely with the key issues to be addressed for advancing China's reform and opening-up. In the new era, aligning with international high-standard economic and trade rules and advancing high-level institutional opening are the new significant missions entrusted to the Free Trade Zones by the Central Committee of the Communist Party of China and the State Council. 

Under the guidance and support of the Ministry of Commerce and other authorities, we are aligning ourselves with international high-standard economic and trade rules such as CPTPP and DEPA. We are targeting provisions related to cargo trade, service trade, digital trade, intellectual property, government procurement, and post-border management systems. We are researching reform measures to explore pathways for comprehensive deepening of reform and opening up, and provide practical support from Shanghai for China's accession to high-standard economic and trade agreements.

Source:  Shanghai Release

Expert Perspective

If an employer did not make social security contributions for foreign employees, can the foreign employees request retroactive contributions for the period they were employed? Is there a time limit for retroactive contributions?

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

A: According to Article 8 of the Interim Measures for the Participation in Social Insurance of Foreigners Employed in China, foreign individuals who participate in social insurance in accordance with the law and have disputes with their employers or domestic workplaces can apply for mediation, arbitration, or file lawsuits. Therefore, if an employer or domestic workplace infringes upon the social insurance rights of foreign employees, the foreign individuals can also request the social insurance administration or the social insurance fee-collection agency to handle the matter in accordance with the law.

We consulted the Shanghai Municipal Human Resources and Social Security Bureau on this issue and received the following response: Employers have an obligation to make social security contributions for foreign employees. If an employer has not made such contributions for foreign employees, the employees can request retroactive payment of the unpaid contributions for the duration of their employment, and the retroactive period can date back to when the employment relationship was established. 

Since the Social Insurance Law came into effect in July 2011, if the labor relationship was established before the Social Insurance Law came into effect, the retroactive payment can be traced back to when the law came into effect. That is to say, the employer is required to make retroactive payments for foreign employees’ social security contributions after July 2011.