Issue 65

Shanghai Weekly Bulletin

No.2, October 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 Issues Regulations on Network Data Security Management

【Keywords:Network Data】

The Chinese government released on September 30, 2024 the Regulations on Network Data Security Management. The document puts forward general requirements and provisions for network data security, further specifies rules concerning personal information protection, and fine-tunes mechanisms for the management of important data. It also clarifies the duties and requirements for the development of the catalog of important data, and stipulates the obligations for internet platform service providers. It is scheduled to take effect on January 1, 2025.

Source:Website of the Chinese Government

2. GAC Unveils Measures for the Administration of Downtown Duty-free Shops

【Keywords:Downtown Duty-free Shops】

The General Administration of Customs (GAC) recently issued the Measures for the Supervision and Administration of Downtown Duty-free Shops by Customs of the People's Republic of China, which took effect on October 1, 2024. The document regulates the operation of downtown duty-free shops, as well as the sale and departure of duty-free goods (including tax refundable Chinese products).

Source：GAC

【Shanghai】

1. Shanghai Revises Its Regulations on Improving the Business Environment

【Keyword:Business Environment】

The full text of the Resolution of the Standing Committee of Shanghai Municipal People's Congress on Revising the Regulations of Shanghai on Improving the Business Environment was recently released. According to the document, the drafting of local laws, rules and regulations, normative documents, and specific policies and measures that are related to economic activities of enterprises and other business entities shall be subject to fair competition review. The document is scheduled to take effect on November 1, 2024.

Source: Shanghai Municipal People's Congress

2. Shanghai to Boost High-quality Development of the Sci-tech Service Sector

【Keywords: Sci-tech Service Sector】

The General Office of Shanghai Municipal People's Government recently issued the Several Measures for Shanghai to Accelerate the High-quality Development of the Sci-tech Service Sector. The document proposes ten measures in four aspects for high-quality development of the sci-tech service sector, including expanding service entities to inject new momentum; optimizing the structure to create new advantages; opening up new arenas; and strengthening guidance to build a new ecosystem. The document took effect on October 10, 2024, and will remain valid until October 9, 2027.

Source:Shanghai Municipal People's Government

3. Pudong Adopts Provisions on the Supply of Medicines and Medical Devices for International Ships

【Keywords: International Ships; Medicines and Medical Devices; Supply】

The Standing Committee of the People's Congress of Pudong New Area recently reviewed and adopted the Several Provisions on the Supply of Medicines and Medical Devices for International Ships in Pudong New Area, which will come into effect on October 15, 2024. The document pioneers the supply model of medicines and medical devices for international cargo ships, stating that a list of 209 types of for-ship medicines and medical devices in ten categories will be compiled and released. The list will also be updated to meet industry standards and evolving needs.

Source:People's Congress of Pudong New Area

One Week in Shanghai

【Latest News】

1. Shanghai Unveils New Measures for Rising Number of Foreign Visitors 

【Keywords:Foreign Visitors in Shanghai】

Shanghai has seen a rising number of foreign visitors since this year. To facilitate their entry and living in Shanghai, the city recently introduced a series of new measures. 

Source: Intl Services Shanghai

2. Total Consumer Spending in Shanghai Hit 67.6 Billion Yuan During the Holiday

【Keywords:National Day Holiday; Consumption】

Shanghai's consumer market was booming during the National Day holiday. From September 30 to October 6, the city's total consumer spending, both online and offline, reached 67.6 billion yuan, an increase of 3.2 percent year on year. Total customer flow to stores in 36 key business districts reached 34.49 million, a rise of 9.8 percent from the same period last year. Tourists from other provinces spent 15.1 billion yuan during their travel in Shanghai, an increase of 5.2 percent over the 2023 holiday season. The total number of consumption transactions was 42.931 million, up 10.7 percent from the same period last year.

Source: Shanghai Release

3. Shanghai Receives 18.62 Million Visitors During National Day Holiday

【Keywords: National Day Holiday; Cultural Tourism】

During the National Day holiday, Shanghai received 18.62 million visitors, basically the same as last year. The total amount of tourism consumption transactions in Shanghai, including food, accommodation, transportation, travel, shopping and entertainment, was 26.92 billion yuan, a year-on-year increase of 4.6 percent. The average occupancy rate of hotels in Shanghai was 59 percent, a growth of seven percentage points over the same period last year. Major tourist attractions received a total of 7.73 million visitors during the seven-day holiday.

Source:Shanghai Tourism

4. Pudong Begins Issuing Confirmation Letters for High-level Foreign Talents

【Keywords: High-level Foreign Talents; Visa】

The Pudong New Area in Shanghai has begun issuing the Confirmation Letter for High-level Foreign Talents. As the first district in China under city jurisdiction to receive this authority, Pudong is now better equipped to facilitate visa applications for high-level foreign talents who are invited to Pudong for academic exchange and business visit. With the letter, foreign talents can now apply for a foreign talent visa (R visa) with a maximum validity of 10 years, allowing single stays of up to 180 days and multiple entries. 

Source:International Services Shanghai

【Forum & Exhibition】

1.2024 ESG Global Leaders Conference to Be Held on October 16-18

【Keywords:  ESG Global Leaders Conference】

The 2024 ESG Global Leaders Conference is scheduled to take place on October 16-18 in Huangpu District, Shanghai. Under the theme "Uniting for Global Prosperity", the conference will focus on cutting-edge topics such as energy and dual carbon, green finance, sustainable consumption, technology and public welfare. There will be nine parallel forums that will discuss more than 50 core topics in depth. There will be interspersed with multiple ESG workshops and side meetings.

Source:International Services Shanghai

2. 7th Hongqiao International Economic Forum to Be Held in November 

【Keywords: Hongqiao International Economic Forum】

The 7th Hongqiao International Economic Forum will be held at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2024. With the theme "High-standard Opening up for Universally Beneficial and Inclusive Economic Globalization", the forum will feature discussions on building an open global economy and a community with a shared future for mankind, inviting globally renowned leaders in politics, international organizations, business and academia. 

Source: International Services Shanghai

【Culture & Art】

1. Theme Exhibition on Confucius Culture Opens at Minhang Museum

【Keywords: Confucius Culture】

A theme exhibition on Confucius culture opened on September 28, 2024 at the Minhang Museum. The exhibition is divided into three sections, namely "Master's Era", "Tracing Thousands of Years" and "Sage Wisdom". Through a total of 107 items (sets) of selected cultural relics such as the portrait of Confucius, the paintings of the sacred sagas of Confucius, it expounds on the core Confucian thoughts such as Confucius's founding of Confucianism and promoting benevolent government, and explores the background of the times when Confucius lived, the trajectory of his life and the profound influence of his thoughts on subsequent generations and even the world.

Source:Minhang Today

【Corporate Activities】

1. Kistler Puts First Localized Project into Production in Pudong

【Keywords: Kistler】

The Swiss Kistler Group recently completed and put into production its NCFE (model) servo press assembly workshop in Zhoupu Town, Pudong New Area. It is the group's first localized project in China.

Source:Pudong Release

2. ZF Remanufacturing Project Settles in Yangshan Bonded Zone

【Keywords: ZF】

ZF Services (China) Co., Ltd. and the Administration of Lingang Special Area recently signed an agreement for the settlement of a remanufacturing and service operation center at the Yangshan Special Comprehensive Bonded Zone. Based on the remanufacturing of passenger car automatic transmissions, ZF China's remanufacturing project will explore the remanufacturing and bonded maintenance of other products such as steering gears, commercial vehicle transmissions, and autonomous driving electric drive and electronic control. The facility will become a comprehensive demonstration base of circular economy, and it can effectively reduce carbon dioxide emissions and provide a model for the construction of a "green remanufacturing" demonstration base.

Source: Shanghai Lingang

Q&A

Q1: Officials with the National Development and Reform Commission (NDRC) answered questions at a press conference held by the State Council Information Office on the "systematic implementation of a package of incremental policies to promote economic growth, optimize economic structure, and drive continued improvement in development momentum" - May I ask, what the Chinese government will do to boost the investment confidence of private entrepreneurs and attract more foreign investment? What policies will be introduced to further improve business environment?

A1: At a meeting on September 26, the Political Bureau of the CPC Central Committee pointed out that it is necessary to help enterprises overcome difficulties, standardize law enforcement and regulatory actions against enterprises, and further improve the market-oriented, law-based and international business environment. The NDRC will adhere to the problem-oriented approach and work with relevant departments to enhance business environment through the "three further steps".

First, we will further improve the legal system related to enterprises. On the one hand, we will speed up the legislative process of the Law on Promoting the Private Economy, and implement equal treatment of state-owned and private enterprises. We will speed up revision of the bidding and tendering law, aiming to break down local protectionism, and promote fair participation of enterprises of all ownership types in market competition. We will push for revision of the Regulation on Ensuring Payments to Small and Medium-Sized Enterprises, and encourage government agencies, public institutions, and large enterprises to pay small and medium-sized enterprises in a timely manner. On the other hand, we will speed up the cleanup of laws, regulations, and policies that involve unequal treatment of enterprises, and remove institutional barriers that hinder fair competition among enterprises.

Second, we will further standardize the law enforcement and regulatory actions involving enterprises. We will push for improvement of administrative discretion benchmarks, and adopt more inclusive and prudent supervisions and flexible law enforcement methods to avoid or mitigate the impact on the normal production and operation of business entities. We would regulate non-local administrative law enforcement, establish and improve the system of assistance in non-local administrative law enforcement, and prevent selective law enforcement and profit-seeking law enforcement. We would also tighten scrutiny on administrative law enforcement officers, and resolutely correct wrongdoings like random charges, fines and levies, and hold related agencies and officers accountable.

Third, we will provide further assistance to help enterprises address their practical difficulties. We will give full play to the role of the inter-ministerial joint conference system, which is tasked to promote the development and growth of the private economy. We will build and use the comprehensive service platform for the development of the private economy, strengthen regular exchanges and communication at the national, provincial, municipal and county levels, listen to opinions and suggestions from enterprises, and promote the resolution of urgent and difficult problems. For example, in response to a common complaint from some enterprises that they can get little access to bank financing, we have pushed for expanded coverage of loan extensions that do not require corporate borrowers to repay principal for a period of time, from small and micro enterprises to medium-sized enterprises in technology, manufacturing and agriculture, thereby improving the efficiency of loan renewal and reducing their capital costs.

Regarding your question about how to attract more foreign investment, we will take five measures, including increasing efforts to attract and stabilize investment, further expanding opening-up, and launching new foreign investment projects, to encourage foreign-funded enterprises to deepen presence and achieve business success in China.

Source: State Council Information Office

Expert Perspective

China FDI Review: Regulatory Updates of FDI in Modern Service

By: Zhao Yifan, Zhang Ziwei (ALLBright Law Offices)

[Continuing from the Last Issue]

III Opening-up policies for service sectors in the free trade zones

(2) Hainan Free Trade Port (Hainan FTP)

Hainan FTP aims to initiate island-wide independent customs operations by the end of 2025. Their policies focus on technical service, education, medicine and healthcare, culture, sport and entertainment, retail shopping, cruise and yacht tourism etc. For further details, please refer to the table in below.