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 Clears up Policy Measures That Hinder Market Unification and Fair Competition

[Key words: Market Unification; Fair Competition]

The State Administration for Market Regulation, the National Development and Reform Commission, the Ministry of Finance and the Ministry of Commerce jointly issued on July 5, 2023 the Circular on Clearing up Policy Measures That Hamper a Unified Market and Fair Competition, outlining a plan to comprehensively clear up various provisions and practices that impede a unified national market and fair competition.
Source: SAMR

（https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fldj/art/2023/art_6e48555bf6e04079bbabe2c358867cdf.html）

2. China Revises the Measures for Point-based Parallel Administration of Average Fuel Consumption and NEVs for Passenger Vehicle Enterprises

[key words: Point; NEVs; Passenger Vehicle Enterprises]

The Ministry of Industry and Information Technology ("MIIT") released on its website on July 6, 2023 the Decision on Revising the Measures for the Point-based Parallel Administration of Average Fuel Consumption and New Energy Vehicles for Passenger Vehicle Enterprises. The Point Calculation Method for NEV Models was also revised accordingly.
Source: MIIT

（https://www.miit.gov.cn/zcfg/jdcjxl/art/2023/art_6facac0a0f534cfbbc65f9cf213ce33c.html）

3. CAC Consults Public on the Rules governing Online Violent Information

[key words: Online Violent]

The Cyberspace Administration of China ("CAC") released on its website on July 7, 2023 the Rules for the Governance of Online Violent Information (Exposure Draft) for public comment until August 6, 2023.

With 31 articles in seven chapters, the Rules made stipulations on the monitoring and early warning of online violent information, as well as the disposal of online violent information and protection mechanism. It requires online information service providers to establish and improve their governance mechanisms, improve their account management systems, establish systems for information release review, monitoring and early warning, whistleblowing and provision of assistance, and disposal of online violent information, strengthen account information management of network users, prevent users from pretending to be the parties involved in a cyber violence incident to register or release information in violation of rules, and clarify the responsibilities for online violence in user agreements.
Source: CAC

■ SHANGHAI

1. Shanghai Issues Measures to Implement Global Partner Program to Promote Foreign Investment

[Keywords: Foreign Investment, Global Partner]

Shanghai Municipal Commission of Commerce released on July 6, 2023 the Circular on the Issuance of the Measures of Shanghai Municipality for the Implementation of Global Partner Program to Promote Foreign Investment, which clarified that those accredited global partners will be eligible for financial rewards, honors and commendations, and have the priority to participate in government activities and access to talent and endorsement policies.
Source: Shanghai Municipal Commission of Commerce

（https://sww.sh.gov.cn/zwgkgfqtzcwj/20230706/45b58c4343ce41fe826170cd1ea7968a.html）

2. Full Text of the Several Provisions on Promoting Innovative Application of Unmanned Driving Equipment in Pudong New Area Released

[Keyword: Unmanned Driving]

The Several Provisions on Promoting Innovative Application of Unmanned Driving Equipment in Pudong New Area was passed on June 29, 2023 at the 15th session of the Standing Committee of the 7th People's Congress of Pudong New Area, Shanghai. Full text of the Provisions has been published recently. The Provisions apply to the testing, operation and innovative application of unmanned driving equipment in designated roads and areas, as well as related supervision and management.

Source: China (Shanghai) Pilot Free Trade Zone

3. Shanghai Issues Work Rules for Product Quality Supervision and Sampling Inspection

[Keyword: Product Quality]

Shanghai Municipal Administration for Market Regulation issued on July 3, 2023 the Work Rules of Shanghai Municipality for Product Quality Supervision and Sampling Inspection. With ten chapters and 93 articles, the work rules provide clear guidelines on the organization, sampling, testing, result notification, retesting after objection, handling of non-conformities, sample disposal, and quality management of product quality supervision and sampling inspection.
Source: Shanghai Municipal Administration for Market Regulation

（https://scjgj.sh.gov.cn/948/20230703/2c984a72890a9da9018919b6df9044c2.html）

4. Shanghai Issues 12 Guidelines to Further Regulate Street Vending Activities

[Keyword: Street Vending Activities]

Shanghai Municipal People’s Government released on July 5, 2023 the Circular of Shanghai Landscaping & City Appearance Administrative Bureau on the Issuance of the Guidelines on Further Regulating Street Vending Activities (for Trial Implementation). According to the Guidelines, business units and individuals are not allowed to occupy roads, bridges, pedestrian bridges, underground passages, and other public places for setting up stalls, peddling or storing goods, which may impact the urban environment and cleanness. Business operators within buildings or structures on both sides of the road and around squares must not extend their business beyond doors, windows, and external walls.
Source: Shanghai Municipal People’s Government

（https://www.shanghai.gov.cn/nw12344/20230705/f1d5e2a9a9a144fdbe63afb3ca8062db.html）

5. Shanghai Issues 2023 Edition of the Guidelines for Public Resource Trading Services Catalogue

[Keyword: Public Resource]

Shanghai Municipal People’s Government released on its website on July 4, 2023 the Circular of Shanghai Municipal Development and Reform Commission on the Issuance of the Guidelines for the Shanghai Public Resource Trading Services Catalogue (2023 Edition). The guidelines apply to Shanghai public resource trading platform and its sub-platforms for the provision of public resource trading services to various entities such as transaction initiators, respondents, intermediaries, bid evaluation experts, as well as the general public and government departments. The service items include transaction witnessing service, transaction venue facilities service, digital transaction process service, transaction archive service, expert service, third-party service, credit service, data service, and other categories.
Source: Shanghai Municipal People’s Government

（https://www.shanghai.gov.cn/nw12344/20230705/89b39c0014bf4c479527c4518bf3f3a5.html）

6. Shanghai Issues Standards for Establishing Extracurricular Training Institutions in the Field of Science and Technology

[Keyword: Training Institutions]

Shanghai Municipal People’s Government issued on its website on July 7, 2023 the Circular of Shanghai Municipal Science and Technology Commission about the Standards for Establishing Extracurricular Training Institutions in the Field of Science and Technology. With nine articles, the Standards apply to organizations or individuals outside of government institutions who utilize non-governmental funds to popularize sci-tech knowledge, advocate scientific methods, disseminate scientific ideas, and promote the spirit of science in the administrative areas of Shanghai. The purpose is not for academic advancement or exams but rather to implement training activities through classroom teaching, social practice activities, online or offline training.
Source: Shanghai Municipal People’s Government

（https://www.shanghai.gov.cn/nw12344/20230707/0ee1447d39f044c38e71baece7caf12c.html）

One week in Shanghai

■ GOVERNMENT ACTIVITIES

1. Intelligent Driving Technology Conference 2023 Opens, Jinqiao Future Mobility Industry Park Is Inaugurated

[Keywords: Intelligent Driving]

The Intelligent Driving Technology Conference 2023 opened on the morning of July 4, 2023 at Jinqiao, Pudong New Area. Looking forward, Shanghai will continue to implement the strategy of leveraging the automotive industry and promoting development of the intelligent connected vehicle (ICV) industry, to accelerate development of the ICV industry.
Source: Shanghai Economic and Information Technology Commission

（https://sheitc.sh.gov.cn/zxxx/20230705/1630e6488f0b42f688ad0d902249e380.html）

2. 31^st East China Fair Opens

[Keywords: Intelligent Driving]

The 31^st East China Fair is going to be held on July 12-15, 2023 at the Shanghai New International Expo Center. The fair is China’s largest import and export trade exhibition for textile, apparel and light industry sectors. It is jointly organized by nine provinces and cities, including Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Shandong, Nanjing, and Ningbo. The exhibition covers a total area of 105,200 square meters in nine halls, with a total of 5,234 booths. There will be 3,299 exhibitors, including 234 exhibitors from 11 countries and regions.
Source: Shanghai Municipal Commission of Commerce

3. Global Investment and Cooperation Conference for Lingang New Area 2023 Held
[Keywords: Investment Conference]
In order to showcase the industrial development potential and urban charm of Lingang New Area to the outside world and draw more investment to the region, the Global Investment and Cooperation Conference for Lingang New Area 2023 was held on July 10 at Lingang Center. This is the first global investment cooperation conference since the establishment of Lingang New Area, aiming to attract global resources and investments. The Shanghai Investment Promotion Center is one of the co-organizers of this conference.
Source: Invest Shanghai

■ CORPORATE ACTIVITIES

1. Carl Zeiss Expands Investment in New Project, Plans Project Delivery Before Year-end
[Keywords: Carl Zeiss]
The New Development Company, a subsidiary of Waigaoqiao Group, and Carl Zeiss China have signed a leasing contract, as Carl Zeiss plans to expand investment in the bonded area. The project is located within the Waigaoqiao International Intelligent Manufacturing Service Industrial Park, and is a standalone 4-story building with a total area of approximately 6,700 square meters. It is scheduled for delivery in early October. After that, two newly established investment companies of Carl Zeiss will use the property for investment, research and development, management, and other business activities.
Source: Pudong News

■ SOCIAL ACTIVITIES

1. “Night at the Museum” Brand Campaign Launched
[Keywords: Museum]
In order to bring the cultural relics in museums to life and make "visiting museums" a way of life and a leisure destination for citizens and tourists, as well as to promote Shanghai's cultural brand and contribute to the development of the city's nighttime economy, the Shanghai Municipal Administration of Culture and Tourism launched on July 8 the "Night at the Museum" brand campaign , which will last until August 19, 2023.
Source: General Office of Shanghai Municipal People’s Government

2. Music in the Summer Air 2023 Opens
[Keywords: Music]
The ongoing Music in the Summer Air 2023, which lasts from July 7 to July 20, 2023, feature 30 domestic and international shows at three venues - the Jaguar Shanghai Symphony Hall, the outdoor Shanghai Urban Music Lawn and the TRI Space at the Blackstone Apartment.
Source: Bendibao.com

Policy Q&A

Q: What measures do we take to facilitate temporary entry for business travelers?

A: Firstly, we allow the accompanying spouse and family members of foreign experts who are being internally transferred by foreign-invested companies within the pilot areas to enjoy the same entry and temporary stay periods as the experts themselves. This provides convenient conditions for their family members to live together in China, so that foreign experts can work and live in China with peace of mind. This arrangement is conducive to attract international talents and drive the flow of various development factors such as knowledge, technology, capital and market resources within the pilot areas.

Secondly, for foreign enterprises planning to establish branch offices or subsidiaries in the pilot areas, the temporary entry and stay period for their senior executives can be extended to two years. Accompanying spouses and family members are also allowed to enjoy the same entry and temporary stay periods. This provides a convenient arrangement for foreign executives, their spouses, and family members who come to China for investment and business exploration, as well as for the preparation and establishment of branch offices or subsidiaries.

Source: Shanghai Municipal Development and Reform Commission

（https://fgw.sh.gov.cn/fgw_fzggdt/20230703/bd2b0364c9714f70ab7047a0aaacd63a.html）

Q: What measures do you plan to introduce to facilitate customs clearance? How will these measures bring convenience to market operators?

A: The first is to further improve the transparency on the time limit of customs clearance. The document has clarified the time standards for customs clearance of air freight and general cargo in the pilot areas. It stipulates that, under the premise of meeting the customs supervision requirements and completing necessary quarantine procedures, air freight cargo should be cleared within six hours after arrival under normal circumstances. For general cargo that has arrived with all required information for customs clearance, efforts will be made to clear it within 48 hours. Transparent time standards for customs clearance will enhance the predictability of import processes for business entities, and create a more favorable environment to facilitate trade development.

The second is to further reduce the cost of customs clearance. For example, customs will allow minor errors on certificates of origin. As long as the eligibility of the goods' place of origin is confirmed, minor errors such as printing mistakes, typographical errors, minor omissions of non-critical information, or subtle differences between documents will not affect the company's eligibility for preferential tariff. This eliminates the need for companies to repeatedly amend and submit applications, thereby reducing their financial, human, and time costs. Another example is the clarification that import companies are allowed to apply for an extension before the expiration of a pre-ruling if the relevant laws, facts, and circumstances on which the pre-ruling was based have not changed. Customs will make prompt decisions before the expiration of the ruling to ensure the continuity of the pre-ruling decisions and avoid any gap between new and old rulings. This is also helpful to enhance the level of trade facilitation.
Source: Shanghai Municipal Development and Reform Commission

（https://fgw.sh.gov.cn/fgw_fzggdt/20230703/bd2b0364c9714f70ab7047a0aaacd63a.html）

Expert Perspective

1. Questions about foreigners making social security contributions in Shanghai

(1) If a company in Shanghai has paid medical insurance premiums and an employed foreign national is sick and unable to provide services, does the company have to pay sick leave wages and cover the employee’s medical expenses? What is the legal basis?
(2) If the company has to pay sick leave wages and cover the employee’s medical expenses, how much cost does it have to bear? What is the legal basis?
(3) Is it mandatory for employers in Shanghai to make social security contributions for their foreign employees? What is the legal basis?
Author: Zhang Yiran (Beijing Zhongkai & Partners (Shanghai))

 A: (1) In Shanghai, apart from minimum wages, working hours, rest and leave, labor safety and health conditions, and social insurance, other rights and obligations between employers and foreign workers are determined through negotiation. Generally speaking, if there is no agreement between the two parties, the employer does not have an obligation to assume related responsibilities.
(2) The standard for sick leave wages in Shanghai can be determined according to the Announcement on Calculation of Sick Leave Wages by the Shanghai Municipal Bureau of Labor Security, which is determined based on the employee's length of service. As for medical expenses, if the company has already paid social insurance, a portion of medical expenses can be reimbursed according to the regulations of medical insurance. For the unreimbursed portion, foreign nationals who have purchased commercial insurance can consult with the insurance company whether the medical expenses can be reimbursed.
(3) A company should make social security contributions for foreign employees, according to the Circular of the Shanghai Municipal Human Resources and Social Security Bureau and the Shanghai Medical Insurance Bureau on Issues Concerning the Participation of Foreigners, Foreigners with Permanent (Long-term) Residence Permits, and Residents of Hong Kong, Macau and Taiwan in Employee Social Insurance during Their Employment in Shanghai. According to Article 1 of the Circular, foreign nationals, as well as those from Hong Kong, Macau and Taiwan, who have established labor (employment) relationship with an employer in Shanghai and obtain the required employment documents, are required to participate in employee social insurance in accordance with national regulations.