Issue 39

Shanghai Weekly Bulletin

No. 2, April 2024

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 Supports Financing for MSMEs via Centralized Credit Information Services Accessible to Financial Institutions  

【Keywords: Micro and Small Enterprises; Financing】

The State Council issued on March 28, 2024 the Action Plan on Coordinating the Building of Financing Credit Service Platforms to Facilitate Financing for Micro, Small and Medium-sized Enterprises (MEMEs). The document proposes to build a national financing credit service platform based on existing credit information platforms, and consolidate local financing credit service platforms to form a national platform network, which will serve as an "exclusive outlet" to share public credit information with financial institutions.

Source: Website of the Chinese Government

https://www.gov.cn/zhengce/content/202404/content_6943103.htm

2. China Unveils First Set of Rules for Fair Competition Review in the Fields of Bidding and Tendering 

【Keywords: Bidding and Tendering; Fair Competition】

The National Development and Reform Commission (NDRC) and other seven Chinese authorities recently issued the Rules for Fair Competition Review in the Fields of Bidding and Tendering. The rules have 22 articles in five chapters, including General Provisions, Review Standards, Review Mechanism, Supervision and Management, and Supplementary Provisions. The rules will take effect on May 1, 2024.

Source: NDRC

https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202404/t20240403_1365443.html

【Shanghai】

1. Jiangsu, Zhejiang and Shanghai to Boost the High-quality Development of Yangtze River Delta Demonstration Zone 

【Keywords: Yangtze River Delta; Ecological and Green Development】

The standing committees of the people's congresses of Shanghai, Jiangsu and Zhejiang have recently voted to adopt the Regulations on Boosting the High-quality Development of the Demonstration Zone for Integrated Ecological and Green Development in the Yangtze River Delta Region, respectively. The regulations will be implemented simultaneously in the three regions starting from May 1, 2024. With 66 articles in nine chapters, the regulations make all-round and multi-dimensional provisions on cross-regional collaborative systems with respect to planning and construction, ecological environment, innovation-driven development, water town culture in the south of Yangtze River, and public services in the demonstration zone.

Source:Yangtze Delta Demonstrations

2. Shanghai Releases Its Regulations for the Development of Zero-waste City 

【Keyword: Zero-waste City】

The Shanghai Regulations for the Development of Zero-waste City, which was released on March 27, 2024, will come into force on June 5, 2024. With 55 articles in six chapters, the document defines a zero-waste city as a model of green and low-carbon development that aims to reduce the amount of solid waste from the source, promote resource utilization, and minimize the environmental impact of solid waste under the new development ideas of innovation, coordination, green, openness and sharing. 

Source: Shanghai Municipal People's Congress

3. Shanghai Introduces Measures to Support Foreign-funded Enterprises in Participating in the Work on Standardization

【Keywords: Foreign-funded Enterprises; Work on Standardization】

Shanghai Municipal Administration for Market Regulation and other two departments in Shanghai recently issued the Several Measures of Shanghai on Further Supporting Foreign-funded Enterprises in Participating in the Work on Standardization. The policy document proposes nine measures, including establishing a collaboration platform for foreign-funded enterprises, encouraging their participation in international standardization activities, improving convenience for them to participate in the drafting of national standards and industry standards, and increasing their participation in drafting local standards.

Source:Shanghai Municipal Administration for Market Regulation

https://scjgj.sh.gov.cn/912/20240402/2c984a728e83e4b2018e9dfaff11220d.html

One Week in Shanghai

【Latest News】

1. Guide to Shanghai Let’s Meet 2024 Released Worldwide

【Keyword: Shanghai Let’s Meet; Guide to 2024】

The Guide to Shanghai Let’s Meet 2024 was released on April 9. It selects some 70 cultural, sports, tourism, commercial and exhibition activities among hundreds of events to lure tourists worldwide. 

Source: Shanghai Release

2. Lingangfin.com Goes Online to Build Green Channel for Financial Services

【Keyword: lingangfin.com】

lingangfin.com, an online financial service platform, was officially launched on March 29, 2024. The platform aims to use digital methods to build a "green channel" that integrates policy, finance, transactions and other services in the Lin'gang Special Area, covering financial innovations, industrial developments, enterprise financing needs, financial service products and other resources.

Source:Shanghai Lin-gang

【Culture & Art】

1. 26th SIFF to Be Held on June 14-23

【Keyword: Shanghai International Film Festival】

The 26th Shanghai International Film Festival (SIFF) will kick off on June 14, and conclude on June 23. The Opening Red Carpet Ceremony and the Golden Goblet Awards Ceremony will be held at the Shanghai Grand Theater on the evenings of June 15 and June 22, respectively. This year, the SIFF will expand cooperation and exchanges, select films recommended by member institutions of "Belt and Road" countries, and screen them at theaters in the Yangtze River Delta.

Source:Shanghai International Film Festival

2. 2024 Shanghai Peach Blossom Festival Opens

【Keyword: Peach Blossom Festival】

The 2024 Shanghai Peach Blossom Festival opened in the Pudong New Area on March 29. The festival will last 18 days, longer than any previous one. Participating towns have planned 12 travel routes and some 100 wonderful activities as part of the festival. 

Source: Pudong Release

3. Berlin Philharmonic Orchestra to Hold Concerts in Shanghai

【Keyword: Berlin Philharmonic Orchestra】

From June 24 to July 1, the Berlin Philharmonic Orchestra, a prestigious troupe of classical music, will embark on a much-anticipated trip to Shanghai under the leadership of chief conductor and artistic director Kirill Petrenko. In addition to four symphonies and several chamber music performances, they will bring a series of art education activities. In the performances on June 26 and June 29, Chinese pianist Yuja Wang, who won the Grammy Award for Best Classical Solo, will perform on the same stage with Kirill Petrenko.

Source:Shanghai Tourism

【Corporate Activities】

1. Green Marine to Develop World's First Green Fuel Trading Platform and China’s First Methanol Bunkering Training and Certification Center in Lin'gang

【Keyword: Green Marine Group】

China (Shanghai) Pilot Free Trade Zone Lin-gang Special Area Administration signed a cooperation agreement with Green Marine Group on April 2, 2024. Under the agreement, the group will establish the world's first methanol bunker fuel trading platform in Lin'gang, and provide effective tools for upstream and downstream enterprises along the green shipping industry chain to manage forward price risks and promote physical transactions of green methanol. It will also set up China's first methanol bunker training and certification center in Lin'gang to provide support for Shanghai to carry out "ship-to-ship" methanol bunkering of international sailing ships and help Shanghai bridge the gap in high-end shipping services.

Source:Shanghai Lin'gang

2. BMSMILE to Open Its First Store in China in April

【Keywords: BMSMILE】

BMSMILE (Shanghai) Brand Management Co., Ltd., the Chinese subsidiary of Republic of Korea’s high-sensitivity IP lifestyle company BMSMILE Co. Ltd., signed a contract to open a store in Wujing, Minhang District. The brand will take Shanghai as its base in China and open more stores in Shanghai, Chengdu and other cities. WIGGLE WIGGLE's first flagship store in China will open on Anfu Road, Shanghai this month.

Source: Minhang Today

Q&A

Q1: Shanghai Municipal Tax Service answered reporters' questions at a press conference introducing Shanghai's Policy Measures to Reduce the Burden on Enterprises and Support the Development of Small and Medium-sized Enterprises - Could you explain how to implement these preferential tax measures? 

A1: Since last year, the municipal taxation department has implemented the continued, optimized and improved preferential tax policies, striving to stabilize market expectations, reduce the burden on enterprises, and stimulate market vitality. In 2023, a total amount of RMB 131.8 billion was added to tax cuts, fee reductions and tax rebates and deferrals. Among the 20 policy measures, there are three types of supportive tax policies. The first is to fully implement the national tax & fee reduction policies, including value-added tax refunds and additional value-added tax credits for advanced manufacturing enterprises; for qualified integrated circuit and industrial machine companies, the additional deduction ratio on R&D expenses is increased to 120%; for other qualified enterprises, the additional deduction ratio on R&D expenses is increased to 100%. The second is to continue to levy the "six taxes and two fees" at half the rate for small-scale VAT taxpayers, small low-profit enterprises and individual industrial and commercial households. The third is to continue to reduce or exempt urban land use tax for enterprises with difficult conditions, and we plan to reduce or exempt property tax for enterprises with difficult conditions.

In the next stage, the municipal taxation department will implement various supporting policies in accordance with the work requirements of the municipal party committee, municipal government and the State Administration of Taxation. We will take the following measures: Firstly, promote direct and early access to favorable policies. We will deepen the policy delivery mechanism to realize targeted tax and fee concessions, optimize the policy delivery process, and broaden policy delivery channels. Secondly, step up policy publicity and instructions. We will adopt "online + offline" publicity methods to spread and explain the latest tax policies through special publicity and online Q&A sessions in April's Tax Publicity Month. Thirdly, properly handle complaints and suggestions. We will collect problems and suggestions reported by enterprises during policy implementations, improve work measures in a timely manner and optimize tax services, so that enterprises can enjoy more tax benefits.

Source:Shanghai Release

Expert Perspective

Several Issues to Be Watched and Addressed by Foreign Businesses under New Company Law

By: He Kan, Chen Leyi, Gao Fangjiao, Liu Zijing, Yang Yanhua (Junhe Law Firm)

[Continuing from the Last Issue]

Q7: Changes in the scope of legal representative candidates, resignation, liability for compensation and changes in registration procedures

According to the New Company Law, the legal representative is assumed by a director or manager who "deals with corporate affairs on behalf of the company". This provision not only expands the scope of candidates, but also raises the substantive requirements for their appointment, that is, the person who serves as the legal representative should be someone who actually participates in the company's operations and has certain decision-making powers. Besides, if a director or manager who serves as the legal representative resigns, he/she shall be deemed to have resigned as the legal representative as well, and the company shall appoint a new legal representative within 30 days from the date of resignation. 

In terms of behavioral consequences, the New Company Law has introduced a system for the company to recover compensation from its legal representative, which is consistent with the current provisions of the Civil Code - that is, if the legal representative causes damage to others due to the performance of his duties, the company shall bear civil liability. After that, it may recover compensation from the faulty legal representative in accordance with the provisions of the law or the company's articles of association.

In terms of changes in registration procedures, the New Company Law clarifies that if a company changes its legal representative, the change registration application must be signed by the new legal representative. This is consistent with the current practice of market supervision and management departments. It can effectively address the situation where the registration of change to legal representative cannot be completed due to the former legal representative's reluctance to cooperate.