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 Issues Guideline to Promote Private Economy [Key word: Private Economy]Xinhua News Agency was authorized to release the Guideline of the Central Committee of the Communist Party of China and the State Council on Boosting the Growth of Private Economy on July 19, 2023. The document rolls out 31 measures in eight aspects, calling for persistent efforts to remove market access barriers and fully implement the policies and mechanisms for fair competition.

Source: XINHUANET

2. MOT Consults Public on the Revised PRC Regulation on International Maritime Transport[Key word: International Maritime Transport]The General Office of the Ministry of Transport (MOT) released on July 19, 2023 the Regulation of the People's Republic of China on International Maritime Transport (Revised Exposure Draft) for public comment until August 19, 2023. Consisting of 68 articles in seven chapters, the revised Regulation made provisions on operators and operations of international maritime transport and its auxiliary business. It has special provisions on foreign investment in and operations of international maritime transport and its auxiliary business, as well as related investigation and handling.

Source: MOT

3. China Issues Guideline to Promote Well-regulated and Sound Development of Network Security Insurance[Key word: Network Security Insurance]The Ministry of Industry and Information Technology (MIIT) released on its website on July 17, 2023 the Guideline of the Ministry of Industry and Information Technology and the National Financial Regulatory Administration on Promoting the Well-regulated and Healthy Development of Network Security Insurance. As the first policy document in the field of network security insurance, the Guideline puts forward 10 opinions in five aspects.

Source: MIIT

4. NMPA Clarifies Issues on Sub-packaging Enterprises’ Sale of Imported Drugs
[Keyword: Imported Drug, Sub-packaging]
The National Medical Products Administration (NMPA) released on its website on July 18, 2023 the Reply of the Comprehensive Affairs Department of the National Medical Products Administration Regarding Matters Concerning Sale of Imported Drugs by Drug Sub-Packaging Enterprises. The Reply to the Shanghai Municipal Medical Products Administration clarified that sub-packaging enterprises can sell the sub-packaged imported drugs after these overseas-produced drugs are filed for sub-packaging.

Source: NMPA

■ SHANGHAI

1. Shanghai Issues Action Plan to Boost High-quality Development of Cross-border E-commerce[Key words: Cross-border E-commerce, Action Plan]Shanghai Municipal Commission of Commerce released on its website on July 20, 2023 the circular of Shanghai Municipal Commission of Commerce, Shanghai Customs District, Shanghai Municipal Tax Service, the People’s Bank of China Shanghai Branch, and the State Administration of Foreign Exchange Shanghai Branch on the issuance of the Action Plan of Shanghai Municipality on Boosting the High-quality Development of Cross-border E-commerce (2023-2025), which deploys 18 work tasks in five aspects, stressing efforts to gather cross-border e-commerce entities in the city. It encourages leading cross-border e-commerce companies to establish regional headquarters of multinational companies, trade-oriented headquarters, and private enterprise headquarters in Shanghai.

Source: Shanghai Municipal Commission of Commerce 

2. Shanghai Releases Guidance on Application for Special Funds Used for Foreign Investment Attraction [Key words: Foreign Investment Attraction, Special Funds]Shanghai Municipal Commission of Commerce and Shanghai Municipal Finance Bureau released on July 14, 2023 the Guidance on Application for 2023 National Special Funds Used for Foreign Economic and Trade Development (Foreign Investment Attraction), which outlines the scope of funding support, eligible beneficiaries, project application requirements, and the methods and criteria for support.

Source: Shanghai Municipal Commission of Commerce

3. Shanghai Releases Second Batch of Typical Cases of Illegal Advertising in 2023

[Key word: Illegal Advertising]

Shanghai Municipal Administration for Market Regulation released on its WeChat account on July 18, 2023 the second batch of ten typical cases of fake and illegal advertising in 2023.

Source: Shanghai Municipal Administration for Market Regulation

4. Shanghai Issues Guidelines to Promote Development of Producer Internet Service Platforms
[Keyword: Producer Internet]The General Office of Shanghai Municipal People’s Government released on July 12, 2023 the Several Guidelines on Promoting High-quality Development of Producer Internet Service Platforms in Shanghai, which outlines the objectives of enhancing development advantages, optimizing the development environment, and elevating management standards to facilitate the high-quality growth of producer internet service platforms.

Source: Shanghai Municipal People's Government

5. Shanghai Deploys 18 Tasks to Promote Development of Industrial Internet Platforms[Keyword: Industrial Internet]Shanghai Municipal Commission of Economy and Informatization released on its website on July 18, 2023 the Circular of Shanghai Municipal Commission of Economy and Informatization, Shanghai Municipal Commission of Commerce and Shanghai Municipal Development and Reform Commission on the Issuance of the Action Plan of Shanghai Municipality for Promoting High-quality Development of Industrial Internet Platforms (2023-2025). The document deploys 18 tasks in four aspects, planning to increase the total transaction value of industrial Internet platforms to RMB3.3 trillion by 2025 and incubate at least 100 industrial Internet platforms, including at least 30 leading platforms and at least 10 listed companies and unicorns.

Source: Shanghai Municipal Commission of Economy and Informatization

6. Shanghai Releases Compliance Guideline to Protect Personal Information in Online Food Ordering Services
[Keyword: Online food ordering, Personal information]Shanghai Consumers Council and Shanghai Restaurants Cuisine Association recently formulated and released the Compliance Guideline of Shanghai Municipality for Protection of Personal Information of Consumers of Online Food Ordering Services. The document provides specific compliance requirements and operational guidelines for food and beverage operators regarding the collection, use, and storage of consumers' personal information in various scenarios related to online food ordering.

Source: Shanghai Consumers Council

One week in Shanghai

■ OFFICIAL ACTIVITIES

1. Pudong New Area Holds Entrepreneurship Policy Briefing Session
[Keyword: Entrepreneurship]Pudong New Area will hold a policy briefing in the afternoon of July 27, 2023 on how to understand policies and apply for entrepreneurship subsidies. The event will cover topics such as the conditions under which entrepreneurs can enjoy subsidies and the types of applicants and entrepreneurial projects that are not eligible for subsidies.

Source: Employment in Pudong

■ CORPORATE ACTIVITIES

1. Eleven Regional Headquarters of Multinational Companies and Four R&D Centers in Pudong Get Certificates[Key word: Foreign-funded Projects, Signing Ceremony]The awarding ceremony for the 37th batch of regional headquarters of multinational companies and R&D centers and the signing ceremony for Shanghai's foreign investment projects were held on July 18, 2023. During the event, 31 newly certified regional headquarters of multinational companies and 13 R&D centers received certificates. 77 foreign investment projects were signed, with a total investment of US$10.24 billion. In Pudong, there are 11 regional headquarters of multinational companies and four R&D centers receiving certificates, representing 34 percent of the total number in the city, and there are 27 foreign investment projects being signed, with a total investment of US$3.215 billion, representing 32 percent of the total amount in the city. 

Source: Pudong Release

■ SOCIAL ACTIVITIES

1. Yangtze River and Maritime Civilization · Fine Exhibition of Archaeological Artifacts Opens at China Maritime Museum

Keyword: Exhibition of archaeological artifacts

The "Tide of the Yangtze River and Maritime Civilization: Fine Exhibition of Archaeological Artifacts" recently opened at the China Maritime Museum. It has featured the highest number of first-grade cultural relics, the highest proportion of precious cultural artifacts, and the broadest participation from exhibiting institutions. A total of 41 museums from 13 provinces and cities across the country are participating in the exhibition, which will run until October 8, 2023.

Source: Shanghai Municipal Administration of Culture and Tourism

2. Final Chapter of the Five-year Permanent Exhibition between West Bund Museum and Pompidou Centre - Reflections of Portraits - Unfolded[Key words: Art History, Exhibition]Starting from July 21, 2023, West Bund Museum and Pompidou Centre's five-year collaborative exhibition project will present the final chapter of the "Trilogy of Modern and Contemporary Art History" - Reflections of Portraits.

Source: Shanghai Municipal Administration of Culture and Tourism

■ TRAINING

1. Financial Courses for Non-financial Managers at Enterprises

[Keyword: Financial]

Training background: The courses will help participants understand the basic theories, knowledge and methods of financial accounting. They will learn to comprehend financial statements, gain insights into the essence of business operations, and effectively interpret and analyze financial information. This will enable them to make informed decisions and plans regarding economic processes.

Time: On the morning of August 18, 2023

Source: Shanghai Foreign Investment Association

Official Q&A

Q1: How to drive innovation in network security insurance product services? — Third Q&A on the Guideline on Promoting the Well-regulated and Healthy Development of Network Security Insurance

A:In terms of product innovation, we encourage insurance institutions to develop diversified network security insurance products that cater to the differentiated network security risk management needs of various industries and in different scenarios. Firstly, insurance companies are encouraged to develop network security property loss insurance, liability insurance, and comprehensive insurance tailored to key industry enterprises, enhancing their ability to respond to network security risks. Secondly, product liability insurance should be developed for information technology products, and specialized network security insurance should be created to provide coverage for network security products, ensuring insurance protection for information network technology products. Thirdly, insurance products like professional liability insurance should be developed for network security services, transferring the security risks that may arise from human error during security service processes of skilled professionals.

In terms of service innovation, we encourage collaboration among network security insurance service providers to explore end-to-end risk management solutions centered around network security insurance. On one hand, we aim to leverage the professional expertise of insurance institutions and collaborate with network security enterprises and telecommunication operators to accelerate the integration and innovation of insurance and network security services. On the other hand, we seek to harness the technical advantages of network security enterprises and network security risk assessment organizations, working in conjunction with insurance companies to enhance network security insurance services.

Source: MIIT's Official Weibo or WeChat Account

Q2: How to promote application of network security insurance services? Fifth Q&A on the Guideline on Promoting the Well-regulated and Healthy Development of Network Security Insurance

A: Firstly, we will promote pilot programs in key industry sectors. We will conduct network security insurance service pilots in key industries such as telecommunications, internet, energy, finance and healthcare, as well as emerging and converging fields like industrial internet, connected vehicles, and the Internet of Things (IoT). By leveraging the roles of the network security industry and relevant associations, we aim to establish replicable and scalable models of network security insurance services.

Secondly, we encourage key industries to improve their risk management mechanisms.We will promote the active utilization of network security insurance tools by enterprises in manufacturing, energy, finance, transportation, water conservancy, education, and other key sectors. This will lead to the enhancement of network security risk management mechanisms and the improvement of security protection capabilities for network infrastructure, critical information systems, and data.

Thirdly, we will push for small and medium-sized enterprises (SMEs) to enhance their network security protection capabilities. We will support SMEs to buy network security insurance, monitor their network security risk exposure, establish and improve their network security risk management systems, and strengthen their ability to respond to network security risks.

Source: MIIT's Official Weibo or WeChat Account

Expert Perspective

What is the legal framework for cross-border transfer of personal information? 

By Luo Yi (Global Law Office)

A: After the promulgation of the Cybersecurity Law of the People's Republic of China on June 1, 2017, the Data Security Law of the People's Republic of China on September 1, 2021, and the Personal Information Protection Law of the People's Republic of China on November 1, 2021, these laws and corresponding administrative regulations, rules, guidelines and standard contracts, such as the Measures for Security Assessment of Cross-border Data Transfer, the Guidelines for Filing Security Assessment of Cross-border Data Transfer (Version 1), the Measures for Standard Contract for Cross-border Transfer of Personal Information, and the Guidelines for Record-filing of Standard Contract for Cross-border Transfer of Personal Information (Version 1), form the legal framework for the cross-border transfer of personal information (collectively referred to as the "Security Law").