Issue 48

Shanghai Weekly Bulletin

No.2, June 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. MOFCOM Issues Document for High-quality Implementation of the RCEP 

【Keyword: RCEP】

The Ministry of Commerce (MOFCOM) recently issued the Circular on Drawing Upon Good Experiences and Practices to Promote the High-quality Implementation of the Regional Comprehensive Economic Partnership (RCEP) Agreement. With details in four aspects, the document calls for establishing RCEP enterprise service centers, special enterprise service zones and other public platforms, and proactively serving enterprises by drawing up a "one-stop" public service implementation list across the entire RCEP chain and process, opening RCEP consulting service hotlines and windows, and through other means.

Source: MOFCOM

 

2. China International Service Platform Officially Launched 

【Keyword: Foreign Talent】

On June 3, 2024, the "China International Service Platform" (www.chinajob.com) was officially launched by the Foreign Talent Research Center of the Ministry of Human Resources and Social Security (MOHRSS). The platform aims to enhance the convenience and comfort of foreign talents who work and live in China by providing comprehensive information services that have the characteristics of "full-chain, integrated, convenient, and online and offline service".

Source: CHINAJOB

 

【Shanghai】 

1. Shanghai Introduces Measures to Boost Industrial Efficiency and Cost Reduction 

【Keyword: Industrial Efficiency and Cost Reduction】

Shanghai Municipal Commission of Economy and Informatization and other eight government departments in the city recently issued the Several Measures on Further Boosting Industrial Efficiency and Cost Reduction to Advance New Industrialization, which took effect on the date of issuance and will remain valid until December 31, 2027. The document highlights 17 measures in five aspects, including strengthening the supply of factors of production, improving the efficiency of factors, reducing logistics and warehousing costs, enhancing fiscal and tax support, and boosting enterprise services.

Source: Shanghai Municipal Commission of Economy and Informatization

 

2. Shanghai Unveils Measures to Facilitate Cross-Border Trade 

【Keyword: Cross-border Trade】

Shanghai Municipal Commission of Commerce and other eight government departments recently issued the 2024 Measures for Ports of Entry in Shanghai to Facilitate Cross-border Trade in 2024. The document proposes 34 measures in six aspects, including improving the customs clearance efficiency of imports and exports, enhancing trade facilitation for new drivers of foreign trade,  supporting integrated development of service trade and trade in goods, strengthening port of entry informatization and intelligence, and enhancing the sense of gain and satisfaction of enterprises and the public.

Source: Shanghai Municipal Commission of Commerce

 

3. China's First Regulation for Fair Competition Review Takes Effect 

【Keyword: Fair Competition】

As China's first regulation for fair competition review, the Several Provisions of Pudong New Area on Enhancing Fair Competition Review came into effect on June 1, 2024. Covering all the subjects and objects of fair competition review, these provisions specify that in the formulation of any policy measure related to the economic activities of business entities, a mechanism for fair competition review must be established and that fair competition review shall be made a necessary procedure for formulating policy measures.

Source: Pudong Release

 

One Week in Shanghai

【Latest News】 

1. Hongqiao International Central Legal Hub Launches Public Service Platform

【Keywords: Hongqiao; Public Service Platform】

The Hongqiao International Central Legal Hub launched its public service platform on June 3, 2024. The platform offers "one-stop" online and offline legal services for legal service institutions and enterprises in the Shanghai Hongqiao International Central Business District.

Source: Minhang Today

 

2. "Shanghai Exhibition Assistant" Miniprogram Released

【Keyword: Shanghai Exhibition Assistant】

The "Shanghai Exhibition Assistant" miniprogram was officially released on June 6, 2024. Adopting a "Users-First and Demand-oriented" philosophy, the miniprogram aims to provide refined services for all kinds of market entities in the exhibition sector. It was developed according to a "3+2+2" model, i.e. targeting "three types of audiences", involving "two dimensions", and providing "two types of services".

Source: Shanghai Municipal Commission of Commerce  

 

【Competitive Event】 

1. Preliminary Round of X·TIME International Entrepreneurship Competition 2024 Kicks off

【Keyword: X•TIME】

The Lingang Special Area X·TIME International Entrepreneurship Competition 2024, which was launched in March this year, will soon kick off its preliminary round. The competition has set up four new quality productive force tracks, including automotive electronics, critical software, artificial intelligence, and integrated circuits. Registrations for the competition will end on June 14, and the grand finals will be held in August.

Source: Shanghai Lin-gang

 

【Forum & Exhibition】

1. 2024 Lujiazui Forum to Be Held on June 19-20

【Keyword: Lujiazui Forum】

The 2024 Lujiazui Forum will be held from June 19 to 20 under the theme "Promoting World Economic Growth with High-quality Financial Development". The forum will feature eight plenary sessions, covering current hot topics in the economic and financial fields.

Source: Shanghai Release

 

2. WAIC 2024 to Be Held in Shanghai in July

【Keyword: WAIC】

The 2024 World AI Conference & High-Level Meeting on Global AI Governance (WAIC 2024) will be held in Shanghai in July, with the conference forums running from July 4 to 6 and the exhibitions running from July 4 to 7. Focusing on the theme of "Governing AI for Good and for All", WAIC 2024 will feature four core sections, namely conference forums, exhibition and showfloor, award and competition, and intelligent experience.

Source: WAIC

 

3. WTIF 2024 to Kick off in Lin-gang Special Area

【Keyword: WTIF】

The World Top-Performing Incubator Forum 2024 (WTIF 2024) will be held in the Lin-gang Special Area in Shanghai from September 26 to 28. With the theme "Innovation Without Boundaries, Coexistence Through Collaboration", the forum will stage a series of events, including keynote speeches, in-depth roundtable dialogues, incubation workshops, and annual incubation project roadshows. Participants will explore cutting-edge topics such as international innovation incubation, life science technologies, digital technologies, and new quality productive forces.

Source: Shanghai Lin-gang

 

【Culture & Art】

1. Shanghai Museum Launches Ancient Persia Exhibition

【Keyword: The Glory of Ancient Persia】 

The "Glory of Ancient Persia: Treasures from Iran" exhibition will be held at Shanghai Museum on People’s Square from June 13 to October 7, 2024. The exhibition will bring together over 270 artifacts from the National Museum of Iran, the Gorgan Archaeological Museum, the Rasht Museum, the Persepolis Museum, the Shanghai Museum, the Xinjiang Uyghur Autonomous Region Museum, and the Bayingol Mongolian Autonomous Prefecture Museum, covering multiple categories such as architecture, sculpture, coins, ceramics, glass, metal, calligraphy, painting, and fabrics.

Source: Shanghai Tourism

 

2. 2024 Shanghai Cultural Heritage Season Kickstarts Serial Events

【Keyword: Shanghai Cultural Heritage Season】

The 2024 Shanghai Cultural Heritage Season has kickstarted a series of events since June. Through the six main sections of "Exhibition, Fun Travel, Bazaar, Aesthetic Education, Performance, and Microfilm", the season aims to string key activities and major festivals of cultural heritage in the city, promote public involvement in the protection, inheritance and development of cultural legacies, and carry forward the cultural veins of the city to expand urban consumption and create a better life.

Source: Shanghai Tourism

 

3. Exhibitions of "LA FRANCE" and "Early Works of Rosemarie Trockel" Open in Shanghai

【Keywords: France, Trockel】

The "LA FRANCE" exhibition recently opened at the No. 1 Exhibition Hall of Pudong Being Art Museum. Meanwhile, the "DECIPHERMENT: Early Works of Rosemarie Trockel" exhibition was held at the No. 2 Hall, which marked the first personal exhibition of Rosemarie Trockel in the Chinese mainland. Both exhibitions will last until June 23.

Source: Pudong Release

 

【Corporate Activities】

1. Nippon Paint Signs up for 7th CIIE

【Keyword: Nippon Paint】

The inauguration ceremony of a new special section for new materials at the China International Import Expo (CIIE) was recently held at the National Exhibition and Convention Center (Shanghai). At the ceremony, Nippon Paint China signed up for the 7th CIIE. The company will set up a booth in the new materials section of CIIE’s technical equipment exhibition area. In its first-ever participation in the CIIE, Nippon Paint will fully showcase its cutting-edge and innovative paint technologies and materials that are developed from resources pooled worldwide in the 300-square-meter booth.

Source: Pudong Release

 

Q&A

1. Officials of the Shanghai Municipal Financial Regulatory Bureau answered questions at a press conference introducing the 2024 Lujiazui Forum - One of the topics to be discussed at the 2024 Lujiazui Forum is "Benchmarking high-standard economic and trade rules and promoting high-level institutional opening of finance". What has Shanghai done in recent years in pushing for high-standard opening-up of the financial sector?

A: In recent years, we have stuck to the unified arrangement of the central government, and steadily and prudently promoted high-standard opening-up of the financial sector. Shanghai's status as China's financial opening-up hub has become more prominent, and it can be summarized as "four accelerations."

The first is to push for the inter-connectivity of financial factor markets. We have launched the Swap Connect, optimized the "Shanghai-Hong Kong Stock Connect", introduced the Shanghai-Singapore ETF Connect, and debuted related ETF products simultaneously on the two exchanges. Besides, we have inaugurated the International Reinsurance Trading Center, which now accommodates 15 property and casualty insurance companies' reinsurance operation centers and four insurance brokerage companies.

The second is to accelerate facilitation of cross-border investment and financing activities. We are leveraging the advantages of the pilot free trade zone and the Lingang Special Area in financial opening-up and innovation, and carrying out in-depth pilot projects to make it easier for foreign institutional investors to get access to China's capital market. Cross-border RMB settlement volume in Shanghai exceeded RMB 20 trillion in 2023, accounting for 43% of the national total and more than any other jurisdiction in the country.

The third is to speed up the launch of international financial products. We have introduced the world's first shipping futures product based on the Export Container Settlement Freight Index (European route). So far, Shanghai has six international products, including crude oil, No. 20 rubber, low sulfur fuel oil, international copper, container freight index (European route) futures and crude oil options, to be tradable for overseas traders. Besides, after the listing of 30-year government bond futures on the China Financial Futures Exchange, we have developed a sound product system covering short, medium, long and ultra-long maturities.

The fourth is to accelerate the aggregation of Chinese and foreign financial institutions in Shanghai. Six newly established foreign-owned public funds, foreign-controlled financial management companies backed by China's top five state-owned banks, and more than half of foreign-controlled securities companies are all located in Shanghai. Besides, we have deepened the pilot programs of qualified domestic limited partners (QDLP) and qualified foreign limited partners (QFLP). 92 foreign asset management institutions participated in the Shanghai QFLP pilot program, and 63 participated in the QDLP pilot program.

In the next stage, we will, in accordance with the central government's arrangement, and based on the premise of safeguarding national interests and national security, shift from partial opening-up to institutional opening-up, and promote opening-up on a larger scale, in broader areas, and at a higher level.

The first is to advance connectivity in the financial market. We are preparing to build an international financial asset trading platform, enhance the capacity the international reinsurance center, develop more RMB-denominated futures and options products, and improve the internationalization of Shanghai's financial market.

The second is to further "benchmark" international economic and trade rules. We will be aligned with international economic and trade rules such as CPTPP and DEPA, participate in local legislation in the upgrading of free trade account functions and the development of offshore bond market in the free trade zone, and draft Shanghai's action plan for serving enterprises to "go global", develop cross-border and offshore financial products, and enhance the ability of financial companies to help their customers explore the international market.

The third is to further "increase volume and improve quality". We plan to revise the "Regulations of Shanghai Municipality on Promoting the Construction of the International Financial Center" to enhance the rule of law in building financial center. We will expand the business scope of foreign financial institutions, fully implement national treatment, and attract more long-term investors and international organizations to do business in Shanghai.

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]

Q16: Deregistration

The last path for shareholders to exit a company is to deregister the company. The New Company Law has added two new systems to revitalize the market, clean up resources and maintain sound market order.

①The first is to add a simplified deregistration system. If a company has not incurred any debt during its existence or has paid off all debts, it can cancel its registration through simplified procedures based on the commitment of all shareholders. However, if any shareholder makes a false commitment in the simplified deregistration procedures, the shareholder shall bear joint and several liability for the debts before the deregistration.

②The second is to add a mandatory deregistration system. If a company has its business license revoked or is ordered to close business, and has not applied to the company registration authority for registration within three years, the authority may make an announcement (for a period of not less than sixty days) and if there is no objection, the authority may push ahead with mandatory deregistration.

It is noteworthy that the Guidelines for Enterprise Cancellation (Revised in 2023) issued in December 2023 further clarified the requirements of each deregistration process based on the problems in deregistration practices, providing convenience for the orderly exit of enterprises.

From the perspective of foreign-invested companies, there may not be much room and possibility for the deregistration system to be applied, but the new system is of great significance in urging companies to maintain good and compliant operations. In addition to fully considering business needs and sustainable development potential when establishing or acquiring new companies, foreign-invested companies should also pay special attention to corporate compliance systems in the subsequent operation process to avert business deregistration.