NDRC Issues Measures to Improve Capacity of the Hongqiao International Opening-up Hub

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Shanghai Weekly Bulletin

lssue 4,August 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. NDRC Issues Measures to Improve Capacity of the Hongqiao International Opening-up Hub

【Keyword: Hongqiao International Opening-up Hub】

 

The National Development and Reform Commission (NDRC) recently issued a circular to publish the Several Policy Measures on Further Improving the Capacity of the Hongqiao International Opening-up Hub, in which the NDRC introduces 24 specific measures in three aspects, including consolidating the role of the Shanghai Hongqiao International Central Business District (CBD) as the core area of the hub, boosting the integrated development of the Hongqiao CBD and its northward and southward extension belts, and advancing the higher-quality integrated development of the Yangtze River Delta region.

 

Source: NDRC

https://www.ndrc.gov.cn/xxgk/zcfb/tz/202308/t20230816_1359864.html

 

 

2. GAC Adjusts the Catalogue of Bonded Repair Products to Promote High-quality Development of Bonded Zones

【Keywords:Comprehensive Bonded Zones】

 

The General Administration of Customs (GAC) recently issued the Implementation Plan for the Comprehensive Reform to Boost the High-quality Development of Comprehensive Bonded Zones, which includes 23 reform measures and proposes to accelerate the establishment of a sound policy climate and favorable business environment conducive to the development of high-end manufacturing and such producer services as R&D and maintenance, and further reduce institutional transaction costs.

 

Source: GAC

 

3. SPC Issues Two Documents Concerning Ecological Environment Infringement 

【Keyword: Ecological Environment; Infringement】

 

The Supreme People's Court (“SPC”) held a press conference on August 15, 2023 to release the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Laws in Trials of Dispute Cases over Ecological Environment Infringement Liability, and the Several Provisions of the Supreme People's Court on Evidence in Civil Litigations Involving Ecological Environment Infringement. The Interpretation has 29 clauses and will take effect on September 1, 2023. It mainly stipulates the scope of cases involving ecological environment infringement, the doctrine of liability fixation, infringement by several individuals, liability subjects, assumption of liability, limitation of action, and other aspects. 

 

Source: SPC

 

 

【Shanghai】

 

1. Shanghai Issues Action Plan to Promote Innovation-driven Development of Industries with Data as a Production Factor 

【Keyword: Digital Economy; Innovation-driven Development】

 

The General Office of Shanghai Municipal People’s Government recently released a circular to issue the Action Plan on Leveraging the New Track of Digital Economy to Promote the Innovation-driven Development of the Industries with Data as a Production Factor (2023-2025), which proposes to create a new hub for allocation of resources, move faster to develop the markets that use data as a production factor, unleash new demands for application scenarios, further the development and utilization of data resources, develop new forms of data-oriented business, and boost the development of data industrial clusters.

 

Source: Shanghai Municipal People’s Government  

https://www.shanghai.gov.cn/nw12344/20230814/e946902bdcaf40e292602ac6e8818f61.html

 

2. Shanghai Moves to Boost Near-sea Coverage and Application of 5G Network 

【Keyword: 5G Network; Smart Ocean】

 

Shanghai Communications Administration and other two departments in Shanghai jointly formulated and released on August 11, 2023 the “5G Covering Sea” Action Plan on Near-sea Coverage and Integrated Application of 5G Network (2023-2024), in an effort to accelerate the smart ocean development and innovation in ocean technologies. 

 

Source: Shanghai Communications Administration

https://shca.miit.gov.cn/xwdt/dtxw/art/2023/art_ce699f760163444797d7a4f4758db20a.html

 

 

3. Shanghai Conducts Cleanup of Policy Measures Hindering Unified Market and Fair Competition

【Keyword: Unified Market, Fair Competition】

 

Four departments in Shanghai, including Shanghai Municipal Administration for Market Regulation, recently took joint actions to clean up policy measures that hinder the unified market and fair competition, in an effort to implement the decisions, arrangements and work requirements of the CPC Central Committee and the State Council on building a nationwide unified market, promoting the implementation of fair competition policies and optimizing business environment. 

 

Source: Shanghai Municipal Administration for Market Regulation

 

4. Shanghai Releases 2023 Work Arrangement for Digital Transformation of PoE

【Keyword: Ports; Digitalization】

 

Shanghai Municipal Commission of Commerce recently issued the Circular on the Implementation of the 2023 Work Arrangement for Digital Transformation of Port of Entry (PoE). The document outlines the following key tasks: strengthening construction of digital infrastructure at PoE, optimizing digital services at PoE, enhancing digital regulation of PoE, increasing regional influence of PoE digitalization, establishing new platforms for international interconnectivity and cooperation, and facilitating effective operation of the Shanghai Port Digitalization Task Force.

 

Source: Shanghai Municipal Commission of Commerce

https://sww.sh.gov.cn/zwgkgfqtzcwj/20230818/4af5921c69ce4bda8d768130069afb83.html

 

5. Shanghai Adjusts the Financial Limit for Application of Small Claims Procedures in Civil Cases 

【Keywords: Small Claims Procedures; Standard Limit】

 

Shanghai High People’s Court recently released the Circular on the Financial Limit for the Application of Small Claims Procedures in Trials of Civil Cases, which clarifies that, starting from the release date of the Circular, for civil cases that are newly accepted by various primary courts, people’s courts and maritime courts in Shanghai, small claims procedures and “first-instance being final” system shall be applied if the cases are clear and definite in facts, rights and obligations, with few disputes, and involve exclusively monetary claims of no greater than 73,099.50 yuan.

 

Source: Shanghai High People’s Court

 

6. Pudong Consults Public on the Interim Measures for the Administration of Environmental Pollution Liability Insurance

【Keyword: Environmental Pollution; Liability Insurance】

 

The Bureau of Ecology and Environment of Pudong New Area recently released a circular to solicit public opinions on the Interim Measures for the Administration of Environmental Pollution Liability Insurance in Pudong New Area (Exposure Draft). The deadline for submitting comment is September 10, 2023. This initiative aims to advance high-standard reform and opening up in Pudong New Area, contribute to the development of a leading zone for socialist modernization, support Shanghai's efforts to accelerate establishment of an international green finance hub, optimize the mechanisms and systems that guarantee people’s well-being, and leverage means of market to establish an ecological environment risk prevention and control system. 

 

Source: Pudong Release

 

 

One Week in Shanghai

 

【Official Activities】

 

1. Shanghai Launches Competition of “Gathering Overseas Talents in Huangpu, Creating a Future in Innovation and Entrepreneurship” 

【Keywords: Innovation and Entrepreneurship】

 

Huangpu District will hold the Competition of “Gathering Overseas Talents in Huangpu, Creating a Future in Innovation and Entrepreneurship”. Leading innovators and entrepreneurs around the world are welcome to participate in the competition, and the government, enterprises and experts will work together to help innovators and entrepreneurs grow. The registration will last until September 13, 2023. 

 

Source: Shanghai Federation of Returned Overseas Chinese

 

 

Corporate Activities

 

1. Volvo Construction Equipment Issues First Import Order of Remanufactured Products

【Keyword: Volvo; Remanufactured Products】

 

Shanghai Free Trade Zone has taken the lead in launching a pilot program for the import of remanufactured products. The first batch of companies, product information, and regulatory plans have been approved for implementation. Volvo Construction Equipment has confirmed its first import order for remanufactured products from overseas companies. The first remanufactured machine is expected to arrive by the end of September. This means that the company will become the first in the country to successfully carry out pilot business for the import of remanufactured products in key industries.

 

Source: Pudong Release

 

2. German Chemical Giant Covestro’s Shanghai New Factory Begins Production

【Keyword: Covestro; Begin Production】

 

German chemical giant Covestro recently announced that its new polyurethane elastomer factory in Shanghai has officially commenced production. The factory started construction within Covestro Integrated Site Shanghai (CISS) in July 2022 and is the 12th factory within the base, with a total investment of tens of millions of euros. As one of the company's global investments in elastomer materials in recent years, the new Shanghai factory aims to meet the increasing demand for elastomer materials in the Asia-Pacific market.

 

Source: Invest Shanghai

 

 

Social Activities

 

1. Program Details for Year-end Performance Season at Shanghai Culture Square Are Released

【Keywords: Culture, Performance Season】

 

Shanghai Culture Square has released program details for the 2023 year-end performance season. Seven programs from the UK, France, Italy, Russia, Ireland and China will be staged within two months, including classical works and new shows.

 

 

Source: Joyful Tour in Shanghai

 

 

2. Shanghai Grand Theatre Releases 2023-2024 Performance Season 

【Keywords: Shanghai Grand Theatre】

 

As the first internationally advanced comprehensive theater in China, the Shanghai Grand Theatre has announced its 2023-2024 performance season ahead of its 25th anniversary. In the cross-year performance season, nearly 70% of the programs are "premieres" or "debut performances". A total of 58 productions and 480 high-quality performances from both Chinese and foreign artists will be staged. 

 

Source: Shanghai Huangpu

 

 

 

Q&A

 

Q: NDRC’s replies to reporter’s questions related to the Several Policy Measures on Further Improving the Capacity of the Hongqiao International Opening-up Hub. What are the main points of these policy measures?

 

A: The document proposes 24 measures to consolidate the role of the Shanghai Hongqiao International Central Business District (CBD) as the core area of the hub, optimize the northward and southward extension belts, and advance the higher-quality integrated development of the Yangtze River Delta region. 

 

The first part is to consolidate the role of the Hongqiao International CBD, which is at the heart of the Hongqiao International Opening-up Hub. The policy measures target to support the development of a high-level headquarters economy, a high-traffic trade economy, a high-end service economy, and a high-level exhibition economy. It aims to create an internationalized central business district and a new platform for international trade centers. The document presents five measures in this regard, including piloting international high-standard e-commerce rules, developing knowledge-intensive service trade, and pioneering policies for integrated domestic and foreign currency funds for multinational corporations.

 

The second part is to push for the inclusive development of the core area and two belts. The northbound extended belt starts from Hongqiao, and is stretching to Changning, Jiading, Kunshan, Taicang, Xiangcheng and Suzhou Industrial Park. The southbound extended belt begins from Hongqiao and extends to Minhang, Songjiang, Jinshan, Pinghu, Nanhu, Haiyan and Haining. The two belts constitute important wings of the Hongqiao International Opening-up Hub. The document proposes 11 measures in this regard, including building a high-level regional innovation network, launching cross-province road testing for intelligent connected vehicles, conducting comprehensive reform projects for high-quality development of bonded zones, and exploring mutual recognition and sharing of medical examinations and testing results.

 

The third part is to lead the higher-quality integrated development of the Yangtze River Delta region. The Hongqiao International Opening-up Hub is a significant platform for Shanghai, Jiangsu, Zhejiang, and Anhui to promote higher-level coordinated openness, and it serves as an essential gateway for the Yangtze River Delta to connect the international market. The document centers around strengthening the construction of functional platforms to serve the Yangtze River Delta region. It aims to drive collaborative development between the Hongqiao International Opening-up Hub and regional cities like Hefei and Wuhu, gradually achieving resource sharing, policy alignment, and platform co-construction. The document presents eight measures in this regard, including enhancing international aviation service capabilities, jointly building cross-regional rail transit networks, and establishing a research service system along the entire value chain.

 

Source: NDRC

https://www.ndrc.gov.cn/xxgk/jd/jd/202308/t20230816_1359874_ext.html

 

 

 

Expert Perspective

 

The Establishment of the Data Security Legislative Framework - Analysis of Key Points of the Data Security Law of the People’s Republic of China

 

By Liu Xinyu, Wu Haoli (Zhong Lun Law Firm)

[Continuing from the last issue]

The second point is to optimize the data classification and grading protection system

Building upon the requirement of "data classification" outlined in Article 21 of the Cybersecurity Law, the Data Security Law further establishes the data classification and grading protection system at a legal level. In practice, data classification and grading are conducive to striking a balance between data security and data utilization, thereby maximizing the data value. The official draft of the law continues the fundamental framework for classification and grading as outlined in the second review draft, explicitly stating that a national-level, top-down data classification system will become a fundamental regime of China's data security regulations.

 

Specifically, on one hand, the Data Security Law clarifies that the National Data Security Work Coordination Mechanism will coordinate and oversee the formulation of the catalogue of important data. On the other hand, building upon the national important data catalogues, the law stipulates that regional and sector-specific catalogues will be determined by local authorities and relevant departments within their respective jurisdictions.

 

The third point is to clarify regulatory requirements on important data

Since the Cybersecurity Law first introduced the concept of "important data" and its associated protection requirements at a legal level, the scope, identification, and protection requirements of important data have been topics of considerable interest within the industry.

 

In light of the protection requirements put forth by the Data Security Law for important data, they include designating data security personnel and management entities (Article 27), conducting regular risk assessments and submitting risk assessment reports (Article 30), and implementing outbound security management (Article 31), among others.

 

Although the Data Security Law does not provide a specific method for defining "important data" when considering the requirements for formulating the catalogue of important data in Article 21 of the law, it's important to note that there may be significant variations in the recognition of "important data" across different industries and regions. The methods for identifying and defining important data may be established through the issuance of departmental regulations and local rules and regulations by various departments and regions. For instance, Article 3 of the Provisions on Automotive Data Security Management (Exposure Draft) defines important data in the automotive industry. However, whether such practices will continue in the future remains to be observed through subsequent legislative practices.