Issue 50

Shanghai Weekly Bulletin

No.4, 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. China to Promote High-quality Development of Venture Capital 

【Keyword: Venture Capital】

The General Office of the State Council issued on June 15, 2024 the Several Policy Measures on Promoting the High-quality Development of Venture Capital. The document outlines 17 measures in five aspects, including fostering diversified venture capital entities, broadening channels to attract venture capital funds, enhancing government guidance and differentiated supervision, refining the exit mechanism, and improving market environment.

Source: Website of the Chinese Government

 

【Shanghai】 

1. Shanghai to Improve Financial Services in Industrial and Supply Chains

【Keywords: Supply Chain; Finance】

Shanghai Financial Regulatory Bureau and other six Shanghai regulatory bodies recently issued the Action Plan for the Development of the Supply Chain Finance Demonstration Zone in Shanghai's Banking and Insurance Sectors. The document proposes 23 tasks in five aspects. By the end of 2025, financial services should cover all the Shanghai-based industry leaders and companies playing crucial roles along the key industrial and supply chains. Financial institutions are urged to expand and improve movable property and rights pledge financing, and to satisfy all reasonable financing needs of upstream and downstream micro and small businesses as appropriate. They are also instructed to increase the quality and efficiency of supply chain financial services, and improve their risk control capabilities.

Source: International Services Shanghai

 

2. Hongqiao Targets to Be an International Hub of Conventions and Exhibitions 

【Keyword: Conventions and Exhibitions】

Ten Measures of Hongqiao International Central Business District for the High-quality Development of Conventions and Exhibitions were recently released. The document proposes ten measures including improving the capacity of conventions and exhibitions, accelerating the introduction of brand conventions and exhibitions to the city, attracting more convention and exhibition entities, establishing platforms with convention and exhibition functions, supporting local companies in organizing and participating in conventions and exhibitions overseas, encouraging digital upgrades of exhibition venues, boosting conference economy, drafting key plans for the development of conventions and exhibitions, promoting integrated development of conventions and exhibitions and commercial activities, and driving the coordinated development of conventions and exhibitions in the Yangtze River Delta.

Source: Shanghai Hongqiao

 

One Week in Shanghai

【Latest News】 

1. IMF Opens Regional Center in Shanghai 

【Keyword: IMF】

The International Monetary Fund (IMF) opened its Shanghai Regional Center on June 19, 2024. The center was established to strengthen the IMF's communication and cooperation with Asia-Pacific economies and conduct research on sectors that are attracting attentions in emerging markets and middle-income countries. It also aims to provide targeted support for these economies to build their capabilities, which is part of the center's efforts to maintain global and regional financial stability. 

Source:International Services Shanghai

 

2.Shanghai Launches Overseas Warehouse Comprehensive Service Platform

【Keywords: Overseas Warehouse; Comprehensive Service Platform】

In order to promote the high-quality development of Shanghai's cross-border e-commerce overseas warehouses, Shanghai Municipal Commission of Commerce, in collaboration with the departments in charge of taxation, customs and foreign exchange in the city, has guided Shanghai Cross-border E-commerce Public Service Co., Ltd. to leverage big data and blockchain to build an overseas warehouse service platform (www.9810go.com). After pilot tests, the platform was officially put into service in June, and it will effectively boost the development of new foreign trade models and unleash the growth potential of cross-border e-commerce overseas warehouses.

Source: Shanghai Foreign Affairs Office

 

【Forum & Exhibition】 

1. SIFAC Meeting 2024 Held

【Keyword: Finance】

The Shanghai International Financial Advisory Council (SIFAC) Meeting 2024 was held in Shanghai on June 18, 2024. This year's discussion primarily focuses on two major topics. The first topic explores how Shanghai, as an international financial center, can further enhance its international competitiveness and influence. It identifies key areas for financial institutional opening-up, and explores opportunities and spaces for financial market cooperation. The second topic addresses how the city can better play its role as an international hub for green financing, promote institutional innovation in green financing, and strengthen international cooperation in the field of green finance so as to contribute to global sustainable development.

Source: International Services Shanghai

 

【Culture & Art】

1. Shanghai International Light Festival to Open in September

【Keyword: Shanghai International Light Festival】

The first Shanghai International Light Festival is scheduled to take place from September 19 to October 18, with the main venue activities from September 19 to 27 and the sub-venue activities from September 21 to October 18. The main venue activities include the opening ceremony, expert seminars, "Fashion Light" activities, architectural projection shows, light art installation exhibitions, global landscape lighting industry exhibitions, city light map, Shanghai landscape lighting achievements exhibition, closing ceremony, etc. Sub-venues will host corresponding themed activities.

Source: Shanghai Release

 

2. Shanghai Culture Square Releases 2024 Year-end Performance Season

【Keyword: Musical】

Shanghai Culture Square released on June 18 the schedule of its year-end performance season. The list features shows such as the German staged concerts Rebecca and Ludwig II: The king is back, original musical productions Hamlet and the Orphan of Zhao, and the Italian musical Casanova - Lover of Venice. It also includes the 2025 New Year's concert by the Little Choir of Antoniano and the French musical Notre Dame de Paris.

Source: Shanghai Huangpu

 

3. Gabrielle Chanel - Fashion Manifesto to Open at the Power Station of Art

【Keyword: Gabrielle Chanel】

 

A heavyweight exhibition - Gabrielle Chanel - Fashion Manifesto - will be held at the Power Station of Art from July 12 to November 24, 2024. The exhibition is the first retrospective of fashion designer Gabrielle Chanel's works in China, exclusively supported by the Chanel brand. The exhibition is organized in chronological order and thematically, and consists of two main chapters, showing Ms. Chanel's creations from the 1910s to the 1930s, and her works after returning to the fashion industry from 1954 to 1971.

Source: Power Station of Art, Shanghai

 

【Corporate Activities】

1. Allianz Fund Management Inaugurated in Shanghai

【Keyword: Allianz】

Allianz Fund Management Co., Ltd. held an inauguration ceremony in Shanghai on June 19, 2024. It is the first wholly German-owned public fund management company in China. It will continue the century-old tradition of robustness and reliability of the Allianz Group and strive to bring investors a more stable investment experience.

Source: Shanghai Finance WeChat Account

 

2. Shanghai Boeing Modification and Maintenance Base Project Breaks Ground

【Keyword: Boeing】

Shanghai Boeing Aviation Modification and Maintenance Base project broke ground on June 20. The project is located in the southern area of the Yangshan Special Comprehensive Bonded Zone Airport, with a total area of 125 mu and total investment of RMB850 million. It is expected to be completed by the end of 2025, and will be built into a high-capacity aviation service platform integrating engineering technical support, aircraft maintenance and modification, parts maintenance, and aviation material management.

Source: Shanghai Lingang

 

3. Two Foreign Companies Settle in New Bund 31 Complex

【Keywords: Universal Music Group; Mitutoyo】

Universal Music Group, the world leader in music-based entertainment, has inaugurated its new branch company established in the New Bund 31, a new landmark complex in Shanghai. Mitutoyo Measuring Instruments (Shanghai) Co., Ltd., the headquarters of the Japanese company Mitutoyo in Shanghai, has also settled in the complex. 

Source: Pudong Release

 

Q&A

Q1: Relevant officials from Shanghai answered reporters' questions at a press conference introducing the progress of preparations for the 2024 World AI Conference & High-level Meeting on Global AI Governance - As one of Shanghai's three leading industries, how does AI drive high-quality economic development?

A1: In accordance with the national strategic deployment, Shanghai will focus on the important mission of building "five centers", implement the "Shanghai Plan" for AI, focus on core tech research, innovative product applications and talent cultivation, promote new technologies and new products to empower various industries and accelerate the development of new quality production forces.

Firstly, we will make every effort to strengthen the supply of key tech elements. In terms of intelligent computing power, we will go all out to build high-performance intelligent computing power infrastructure, and accelerate the innovation-driven development of large models and vertical models by supporting the construction of large-scale commercial computing facilities in key areas. In terms of large models, we will create an innovative ecosystem, support the rapid iteration of basic large models, and accelerate the application of vertical models in industrial production, finance, education, medical care, and marketing. In terms of corpus resources, we will promote the circulation and sharing of text corpus resources through the market-oriented supply.

Secondly, we will systematically promote the industrialization of humanoid robots. Based on the Humanoid Robot Manufacturing Innovation Center, we will organize the supply of humanoid robot prototypes and tackle the problems of embodied large models, focusing on the integration and co-creation of open source humanoid robots and open source large models to promote better and faster development. At the same time, we will build carriers such as humanoid robot industrial bases, promote the agglomeration and development of key parts industries, and improve the supply efficiency of the industrial chain and reduce manufacturing costs.

The third is to accelerate the opening of super application scenarios. We plan to launch more large IP scenarios, open up the entire chain of supply and demand, tech verification, demonstration and large-scale promotion, and serve technology iteration and enterprise growth. We would guide central enterprises and municipal state-owned enterprises to play a leading role in opening application scenarios, push for upstream, midstream and downstream companies to participate in scenario construction, and accelerate technology verification and innovation.

The fourth is to optimize the public service support system. We will strengthen resource allocation in common platforms, financial support, and human resources introduction and cultivation to form a joint force for development. Based on the "service package" system for key enterprises, we will deepen implementation of the "11 policies" and other favorable measures to drive the development of innovative enterprises.

Source: Information Office of Shanghai Municipality

 

Expert Perspective

Impact of New Cross-border Data Regulations on Domestic and Overseas Investment Projects

By: Fu Peng, Yu Qin, Wei Longjie (Haiwen & Partners)

On March 22, 2024, the Cyberspace Administration of China (CAC) issued the Provisions on Promoting and Regulating Cross-border Data Flow, and issued the Guidelines for Application for Security Assessment of Outbound Data Transfer (Second Edition) and the Guidelines for the Recordation of the Standard Contracts for the Outbound Transfer of Personal Information (Second Edition) (Collectively referred to as the "New Cross-Border Data Regulations", "Regulations" or "New Regulations"). The new regulations are a step forward for the competent authorities in adhering to the dual-wheel drive of innovation and governance, and the benign interactive supervision of security and development. It reflects the firm determination to truly respond to high-level opening up to the outside world, and is beneficial to various domestic and foreign investment projects such as foreign investment in China, private equity investment, and domestic enterprises' overseas investment.

1. Quick view of the new regulations

The Provisions on Promoting and Regulating Cross-border Data Flow simplifies the administrative compliance procedures for the outflow of corporate data, echoing the "open integration, safe and orderly" principle proposed in the Three-Year Action Plan for Data Elements (2024-2026) issued by the National Data Administration in December 2023, providing an institutional framework and guarantee for the orderly cross-border flow of data.

To facilitate reading, the data outbound security assessment and the filing of the standard contract for the outbound transfer of personal information are collectively referred to as "cross-border data compliance declaration" below.

Based on the summary, we can get the following conclusions:

The new regulations stipulate several scenarios where cross-border data compliance declaration is not required.

The new regulations significantly raise the threshold for cross-border data compliance reporting and substantially reduce the circumstances in which reporting is required.

The new regulations emphasize that free trade zones can have their own pilot policies. The negative list system may boost foreign investment in China, thereby affecting the regional choices of foreign investment in China in some industries and businesses.

 

The above three characteristics are generally beneficial to various investment projects at home and abroad, alleviating the considerations of cross-border data factors and regulatory reporting risks in these investment projects.