Issue 54

Shanghai Weekly Bulletin

No.4, July 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 Enhances Support for Cross-border Trade and Investment

【Keywords: Cross-border Trade; Investment】

China's Ministry of Commerce (MOFCOM), along with other three government departments, recently issued the Guidelines on Strengthening Commercial and Financial Coordination to Provide Greater Support for High-Quality Development of Cross-Border Trade and Investment. The document outlines 11 measures in five aspects, with the focus on stabilizing foreign trade and foreign investment, deepening the economic and trade cooperation between China and countries along the route of "Belt and Road" Initiative and foreign investment cooperation, and addressing problems related to facilitation of financing, prevention of risks, and improvement of services.

Source: MOF

 

【Shanghai】

1. Shanghai Vows to Develop World-class Civil Aviation Industrial Cluster

【Keyword: Civil Aircraft】

Shanghai Municipal Commission of Economy and Informatization and other seven government departments in the city recently issued the Shanghai Policy Measures on Supporting the Development of High-end Industrial Chain for Large Civil Aircraft and Promoting the Building of a World-class Civil Aviation Industrial Cluster. The document takes immediate effect and will remain in force until December 31, 2026. It introduces 17 measures in five aspects, including leveraging Shanghai's existing strengths in the large aircraft industrial chain to attract and foster key enterprises and projects, accelerating the installation and application of supporting products, supporting enterprises in expanding production, improving the industrial ecosystem, and building high-standard large aircraft parks.

Source: Shanghai Municipal Commission of Economy and Informatization

 

One Week in Shanghai

【Latest News】 

1. Shanghai Issues China's First E-visa 

【Keywords: E-visa】

China's National Immigration Administration (NIA) has decided to issue electronic visas (e-visas) in the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone on a pilot basis from July 12, in an effort to further promote the digitalization of ordinary visas. At about 13:00 on July 12, the first foreigner holding an e-visa entered the country after being cleared by the border inspection authorities at the Shanghai Pudong International Airport.

Source: International Services Shanghai

 

2. Shanghai Data Exchange Launches Carbon Section

【Keywords: Shanghai Data Exchange; Carbon Section】

Shanghai Data Exchange recently launched the carbon section. Focusing on data circulation and trading in the green and low-carbon fields, the section aims to gather carbon emission data, expand core scenarios such as green finance and carbon emission management, and open up data circulation and trading chains.

Source: Pudong Release

 

【Forum & Exhibition】

1. 2024 Inclusion·Conference on the Bund to Kick off on September 5

【Keywords: Conference on the Bund】

The 2024 Inclusion·Conference on the Bund will be held at the Huangpu World Expo Park, Shanghai on September 5-7. Continuing with the theme "Technology for a Sustainable Future", this year's conference features one Main Forum, 35 Insight Forums, 10 Innovation Creator Stage showcases, and two Innovation Competitions.

Source: Shanghai Huangpu

 

【Culture & Art】

1. French Artist Annette Messager Holds Her First Solo Exhibition in China

【Keyword: Desire Disorder】

The Power Station of Art is presenting "Desire Disorder", the first major solo exhibition in China by renowned French artist Annette Messager. Running until October 8, 2024, the exhibition features over 70 works across various media, including drawings, photographs, sculptures, and installations. It revisits significant moments in Messager's artistic career and is part of the special presentations in celebration of the 60th anniversary of diplomatic ties between China and France. 

Source: Shanghai Huangpu

 

2. Webber's Original Musicals Set Sail in Shanghai

【Keyword: The Phantom of the Opera; School of Rock】

The classic musical "School of Rock" from New York Broadway is set to be performed at the Bank of Communications New Bund 31 Performing Arts Center from July 18 to August 4. "Phantom of the Opera" from London's West End will be staged at the Shanghai Grand Theater from August 27 to October 13.

Source: Shanghai Tourism

 

3. Shanghai Alliance of Art-house Cinemas to Host French Film Week

【Keyword: French Film Week】

2024 marks the 60th anniversary of the establishment of diplomatic relations between China and France. On this important occasion, the Shanghai Alliance of Art-house Cinemas is set to host the French Film Week from July 19 to 28. This year is also the 100th birthday of French filmmaker Claude Sautet. The event will not only screen classic works of renowned filmmakers such as Sautet, but also present masterpieces of French middle-aged and new-generation directors such as Francois Ozon and Charlotte Le Bon, outlining the changing trajectory of French films to the audience.

Source:International Services Shanghai 

 

【Training】

1. German IHK Affiliated Vocational Education Training Center Debuts in Shanghai

【Keyword: IHK】

The Shanghai IHK (Industrie-und Handelskammer, German Chamber of Commerce) Giessen-Friedberg Sino-German Dual Vocational Education and Training Base was inaugurated on July 16, 2024 at the Shanghai Industrial Technology School. The base will provide training programs and curriculum system services for three specialties including mechatronics, industrial mechanics, and mold mechanics.

Source: International Service Shanghai

 

2. Enterprise-level AI and Digital Transformation Technology Innovation Workshop

【Keyword:  IBM】

Generative AI technology is advancing by leaps and bounds, and companies that make good use of AI will gain greater competitive advantages, but how to apply AI to corporate innovation and practice is a troubling problem. To this end, the Shanghai Foreign Investment Association's Intelligent Manufacturing Branch will invite members to participate in the "Enterprise AI and Digital Transformation Technology Innovation Workshop" at the IBM Customer Experience Center on July 26.

Source: Shanghai Foreign Investment Association

 

Q&A

1: A spokesperson of the National Bureau of Statistics answered press questions at a news briefing of China's economic conditions in the first half of 2024. New quality productive forces are the inherent requirement and important focus of promoting high-quality development. Since the beginning of this year, various regions have actively cultivated new quality productive forces. What is the status quo on the development of new quality productive forces? What are the highlights in the process of high-quality economic development?

A: High-quality development is the hard truth of the new era and the primary task of building a modern socialist country. Since the start of this year, while stabilizing economic operations, all regions and departments have continued to work hard on transforming economic models, adjusting economic structures, and increasing efficiency in line with the needs of high-quality development, focusing on stimulating endogenous dynamics and vitality, responding to uncertain risks and challenges through deterministic transformation and upgrading, and steadily advancing high-quality development with a positive momentum.

First, the leading role of sci-tech innovation has been enhanced, and new quality productive forces have been nurtured and mushroomed. Sci-tech innovation is the core element of developing new quality productive forces. A series of significant sci-tech achievements have been produced this year, here are some examples: China's first "ground space station" has passed acceptance test, six C919 passenger planes have been delivered, the Shenzhen-Zhongshan Channel has opened for trial operation, Chang'e 6 has achieved moon sampling and return from the far side of the moon, and the world's first 6G network integrating communication and intelligence has been successfully built. China's sci-tech self-reliance has continued to improve, injecting new momentum into the accelerated development of new quality productive forces. The high-end, intelligent and green manufacturing industries are being steadily promoted, and new industries and new products are increasingly becoming new growth points. In the first half of the year, the added output value of high-tech manufacturing industries increased 8.7% year-on-year, and the added output value of modern service industries represented by information transmission, software and information technology services maintained double-digit growth; the productions of smart products such as 3D printing equipment, service robots and smart watches increased by 51.6%, 22.8% and 10.9% respectively. Investment in high-tech industries continued to grow rapidly, the construction of new digital infrastructure facilities accelerated, and the key role of investment in optimizing the supply structure was strengthened. In the first half of the year, investment in high-tech industries increased by 10.6% year-on-year, 6.7 percentage points faster than total investment. As of the end of May, 460,000 new 5G base stations were built nationwide; 10 intelligent computing centers with high-performance computer clusters were planned, and intelligent computing power accounted for more than 30% of the total computing power.

Second, the green and low-carbon transformation continues to deepen, and the energy production and consumption structure continues to optimize. Green is the background color of high-quality development, and new quality productive forces are driving green production. To tie in with the new trend of green and low-carbon development, China's new energy industry has witnessed rapid growth by relying on continuous tech innovation and a sound industrial chain system. In the first half of the year, the output of new energy vehicles increased by 34.3% year-on-year, and the output of supporting products such as charging piles and automotive lithium-ion power batteries increased by 25.4% and 16.5% respectively. The photovoltaic industry registered strong growth momentum, and the output of the main raw materials polysilicon, monocrystalline silicon, and ultra-clear glass for solar industry increased by 55.4%, 43.6%, and 42.8% year-on-year respectively. At the same time, the construction of a clean energy system has been accelerated, energy conservation and carbon reduction in key areas have been promoted in an orderly manner, and green production and lifestyles have gradually taken shape. According to preliminary estimates, the proportion of non-fossil energy consumption in total energy consumption increased by 1.9 percentage points year-on-year in the first half of the year.

Third, high-standard opening-up continued to deepen, and the quality of international economic circulation was further improved. Against the backdrop of weak global economic growth momentum and increasing external uncertainties and instability, China's exports have improved in quality and quantity, and the value of imports has steadily increased, making positive contribution to economic growth. In the first half of the year, the export value of automobiles, ships and integrated circuits increased by 22.2%, 91.1% and 25.6% year-on-year respectively; the import and export value of private enterprises increased 11.2%, accounting for 55% of the total trade volume. In the six-month period, net exports of goods and services contributed to 13.9% of economic growth. China has been actively expanding its "circle of friends" for global economic and trade cooperation. In the first half of the year, the total import and export value with countries participating in the Belt and Road Initiative increased by 7.2% year-on-year. The cumulative number of China-Europe freight trains exceeded 10,000 by 19 days ahead of the previous year, and the cumulative volume of goods transported increased by 11%. The freight trains have played a positive role in maintaining the stability and smooth operation of the international industrial chain and supply chain. In the meantime, China has announced visa-free policies for more and more countries, and foreigners are increasingly interested in coming to China for business, tourism, and visiting relatives and friends. In the first half of the year, more than 14 million foreigners entered China through ports across the country, and the number of foreigners entering through visa-free entry nearly tripled year-on-year.

Fourth, basic livelihood issues have been effectively addressed, and the foundation for safe development has been consolidated. We will continue to increase efforts to ensure basic safety nets, focus on employment for key groups of people, and effectively protect and improve people's livelihood in the process of development. In the first half of the year, the national per capita net transfer income of residents increased by 5.0% year-on-year in nominal terms; among them, per capita social relief & subsidy income and per capita pension & retirement benefits increased by 5.5% and 8.9% respectively; the average unemployment rate of migrant agricultural laborers was 4.7%, 0.4 percentage point lower than the national urban surveyed unemployment rate. The summer grain harvest was achieved again, with the national summer grain output reaching 299.6 billion jin (equivalent to 0.5kg), up 2.5% from the previous year. The supply of major energy sources continued to increase, and energy for production and life was well supplied. In the first half of the year, the output of industrial crude oil and natural gas increased by 1.9% and 6.0% year-on-year respectively. The manufacturing industry has continued to improve its supply chain, and innovation entities have been continuously cultivated, which has improved the resilience of the industrial chain. As of the end of June 2024, China has cultivated more than 140,000 small and medium enterprises that use special and sophisticated technologies to produce novel and unique products, including 12,000 "little giants".

We should also see that China is still in a critical period of economic recovery and transformation and upgrading, the external environment is becoming more complicated and murky, the problem of unbalanced and inadequate domestic development is prominent, and factors that restrict high-quality development still exist to varying degrees. It will take a long time and sustained efforts to promote high-quality development. We must continue to implement the decisions and arrangements of the Central Party Committee, fully, accurately and comprehensively implement new development concepts, and work on strategic tasks such as accelerating the development of a modern industrial system, promoting high-level tech self-reliance, and moving faster to build a new development pattern, so as to promote the smooth transformation of new and old drivers and effectively strengthen the endogenous force to drive economic growth.

Source: National Bureau of Statistics

 

Expert Perspective

 

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

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

[Continuing from the Last Issue]

II. Impact of the new regulations on foreign direct investment projects

(2) Concerns about the identification of "important data" in foreign investment projects are expected to be eliminated

In some foreign-invested projects, some foreign enterprises may be involved in processing important data or conducting business cooperation with relevant important data processors, thereby getting access to important data. For important data processing activities, the Provisions on Promoting and Regulating Cross-border Data Flows does not relax the requirements for data security assessment. Therefore, if foreign-invested enterprises transfer important data across borders, they still have to fulfill the obligation of data security assessment.

However, the regulation has specifically defined the identification of important data, namely, "as long as the data has not been notified by relevant departments or regions or publicly released as important data, the data processor does not need to report it as important data for data outbound transfer security assessment."

At present, only a few industries such as automobiles have provided industry-specific regulations on the definition of important data (but it is still not very clear). Most industries and regions have not issued special important data catalogs or identification rules. For foreign-invested enterprises, if their regulatory departments, regions or industries have not issued relevant important data catalogs or identification rules, they do not need to consider whether the relevant data involves important data in terms of cross-border reporting obligations, so there is no need to worry about whether data security assessment is required.

The handling mechanism for such matters is similar to the statutory requirements for operators of critical information infrastructure. The Cybersecurity Law of the People's Republic of China does not define critical information infrastructure operators clearly. In practice, companies will only be identified as critical information infrastructure operators if they are formally notified by relevant regulatory authorities. Therefore, a vast majority of companies do not need to worry substantially about whether they need to fulfill the cross-border data reporting obligations of critical information infrastructure operators.

In addition, some free trade zones have explored and implemented important data catalogs. For example, the Lingang Special Area in Shanghai has promulgated the Classification and Grading Measures for Data Cross-border Flow (Trial), which aims to do a good job in the classification and management of cross-border data and clarify the scope of "core data", "important data" and "general data"; the area is expected to form a batch of local important data catalogs in conjunction with the Measures for Industry and Information Technology Data Security Management (Trial) to guide enterprises that may be involved in important data to declare important data.

At the same time, some foreign-invested enterprises have also tried to set up digital business companies in some of China's free trade zones for the sake of unified global data management, in order to facilitate cross-border data transmission. The above-mentioned practical operations also reflect the importance of China's further expansion of high-level opening up to the outside world and encouraging free trade zones to take the lead in implementing pilot policies.