Issue 66

Shanghai Weekly Bulletin

No.3, 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. NFRA Releases Regulations on Syndicated Loan Business

【Keywords:Syndicated Loan Business】

The National Financial Regulatory Administration (NFRA) recently issued the Regulations on Syndicated Loan Business. The document clarifies regulatory direction, provides more syndicated models, and optimizes the distribution ratio and secondary market transfer rules. It also regulates the principles and rules for the pricing of syndicated loans, and puts forward more systematic requirements for syndicated loan management. It will come into effect on November 1, 2024.

Source:NFRA

2. STA Releases Tax Guidelines for "Going Global"

【Keywords:Tax Guidelines for "Going Global"】

The State Taxation Administration (STA) released on October 17 the Tax Guidelines for "Going Global" (2024 Edition). As one of tax-related knowledge products, the document retains the structure of the 2021 edition, summarizes relevant tax policies and 114 tax treaties (arrangements and agreements) for "going global" taxpayers, and addresses 120 common tax-related issues in the categories of tax policies, tax treaties, management regulations and service measures. It also covers policy documents up to June 30, 2024.

Source：STA

【Shanghai】

1. Shanghai Vows to Promote Application of Scientific and Technological Advances

【Keyword:Scientific and Technological Advances; Application】

The General Office of Shanghai Municipal People's Government recently issued the Shanghai’s Action Plan for Promoting the Application of Scientific and Technological Advances (2024-2027). By 2027, the city aims to achieve a total transaction value of technology contracts exceeding 800 billion yuan, a cumulative value of 100 billion yuan in technology commercialization contracts from research institutions, and incubate over 2,000 enterprises through technology commercialization.

Source:Shanghai Municipal People's Government

2. Hongqiao CBD to Build New Platform for International Trade Center

【Keywords: Hongqiao; International Trade Center】

Shanghai Municipal Commission of Commerce, Shanghai Municipal Development and Reform Commission, and the Administration of Hongqiao International Central Business District (CBD) recently issued the Several Measures on Supporting the Hongqiao International Central Business District in Establishing a New Platform for International Trade Center. The document proposes 33 measures in five aspects, including seizing the spillover effects of exhibitions such as the CIIE, developing new international trade with greater efforts, gathering high-capacity trade entities and trade platforms, accelerating the improvement of the professional service sector, and strengthening talent support for the development of the new platform for international trade center. The document will take effect from the date of issuance and remain valid until October 7, 2029.

Source:Shanghai Municipal Commission of Commerce

One Week in Shanghai

【Latest News】 

1.Shanghai Holds 2024 Presentation Ceremony of Top 100 FIEs

【Keywords:Foreign Investment; Top 100 FIEs】

Shanghai Foreign Investment Association and Xuhui District People's Government jointly held the 2024 Presentation Ceremony of Top 100 Foreign-invested Enterprises (FIEs) in Shanghai on October 15. A total of 258 FIEs were ranked on the lists for sales revenue, imports and exports value, tax contribution and job creation in 2023. Generally, they maintain stable operations.

Source:Shanghai Foreign Investment Association

2. China's First Comprehensive Report on the Local Development of ESG Released

【Keywords:ESG】

The 2024 Shanghai ESG Development Report was released on October 16 at the 2024 ESG Global Leaders Conference. The report provides a comprehensive overview of the ESG development in Shanghai, summarizes the achievements and challenges faced by all parties in ESG practices, and explores the future direction and strategy of ESG, contributing Shanghai’s wisdom and solutions to the sustainable development of the country and even the whole world.

Source: Shanghai Finance

【Forum & Exhibition】 

1.2024 North Bund Forum to Open in Shanghai

【Keywords:  North Bund Forum】

The 2024 North Bund Forum is set to take place on October 22-24 at the Grand Halls, North Bund under the theme Digital, Smart and Green: Co-creating a New Ecosystem of Global Shipping and Aviation. The forum consists of an opening ceremony, two main forums, and five thematic sessions. The two main forums are the North Bund International Shipping Forum and the North Bund International Aviation Forum, while the five thematic forums will feature discussions and exchanges about maritime transportation safety, digital intelligence, green and low-carbon development, judicial arbitration, as well as financial & insurance services. 

Source:Shanghai Release

【Competitive Event】 

1. 2024 China Open Squash Returns to Shanghai

【Keywords: China Open Squash】

The 2024 China Open Squash will return to Shanghai from October 30 to November 3 after a five-year absence. During the five-day tournament, 48 players from 13 countries and regions will compete for the men's and women's singles championship trophies and total prize money of US$142,500.

Source:International Services Shanghai

【Culture & Art】

1. Shanghai Stage Art Photography Exhibition Opens on October 15

【Keywords: Shanghai Stage; Photography】

The Shanghai Stage Art Photography Exhibition opened on October 15, 2024 at the China Art Museum. Through 130 stage art photographs, the exhibition records the fruitful results of Shanghai's stage art creations in the new era, and shows the unremitting pursuit of Shanghai's stage artists to be open and inclusive, uphold integrity and innovation, tell good Chinese stories, and interpret the splendor of Shanghai. The exhibition will last until November 15, 2024.

Source:Art Shanghai

2. "Cartier: The Power of Magic" Exhibition to Be Held

【Keywords: Cartier】

An art exhibition titled Cartier: The Power of Magic will be held between November 6, 2024 and February 17, 2025 at the Shanghai Museum East. The exhibition will display 298 exquisite pieces from the Cartier Collection including jewelry, watches and archival documents, as well as 34 Chinese cultural relics. The exhibition is divided into six sections, namely "Totem of Glory", "Animate Universe", "Boundless Creativity", "Amazing World", "Eternal Law" and "A Sip of Prosperity", presenting the audience with a magical journey of jewelry art spanning a century.

Source:Shanghai Museum

【Corporate Activities】

1.Bayer Consumer Health Opens Innovation Center in Shanghai

【Keywords:  Bayer】

Bayer Consumer Health announced on October 16, 2024 the inauguration of its China Center of Innovation and Partnership (CCIP) in the Shanghai Innovation (SH-INNO) Park in Zhangjiang, Pudong. With an investment of approximately 20 million euros, the CCIP will be one of the company's global strategic innovation bases.

Source:Pudong Release

2. Boston Scientific Opens Manufacturing Base in Lin-gang Special Area

【Keywords: Boston Scientific】

Boston Scientific held on October 15, 2024 the opening ceremony of its first manufacturing base in China at the Life Blue Bay, a life science and technology industrial park in Lin-gang Special Area. The base will focus on the production of medical consumables and equipment, which will enable Boston Scientific to achieve "independent production" in China, and help the company build a localized strategic network covering all links of the entire industry chain, including trade, production, R&D, investment and services, thereby providing Chinese patients with a broad range of innovative medical products.

Source:Shanghai Lin-gang

Q&A

Q1: Officials with the Shanghai Municipal Commission of Commerce answered questions at a press conference to introduce the Several Measures on Supporting the Hongqiao International Central Business District in Establishing a New Platform for International Trade Center - Developing new types of international trade is an important part of the development of the Shanghai International Trade Center. How will the Municipal Commission of Commerce leverage the advantages of the Hongqiao International Central Business District (CBD) to promote high-quality development of new types of international trade such as service trade and cross-border e-commerce?

A1: New types of international trade, such as service trade and cross-border e-commerce, are important components of international trade and important areas of international economic and trade cooperation. Together with trade in goods, they constitute important pillars for building a strong trade nation. Developing new types of international trade is an inevitable requirement for China to expand high-level opening-up and cultivate new drivers of foreign trade development, and is also a key link in Shanghai's development of an international trade center. The Hongqiao International CBD is an important vehicle for promoting integrated development of the Yangtze River Delta, improving China's opening-up, and enhancing new advantages in international competition and cooperation. The commission will give full play to the distinctive characteristics and advantages of the CBD and continue to advance high-quality development of new international trade.

First, we would create a "Silk Road e-commerce" cooperation pilot zone to radiate the area. Hongqiao International CBD has formulated and implemented the city's first "Silk Road e-commerce" cooperation pilot zone implementation document. So far, the business district has linked the resources of 26 "Silk Road e-commerce" bilateral partner countries, and has established 22 national pavilions; built a "Silk Road e-commerce" digital technology application center, and replicated successful practices such as cross-border electronic invoices, electronic bills of lading, and cross-border traceability to other cities in the Yangtze River Delta region; launched the Hongqiao International Coffee Port online platform, launched the "Silk Road e-commerce" good products market, and held 35 e-commerce livestreaming events and 20 economic and trade promotion activities. In the next stage, the commission will continue to support the business district in aligning with international high-standard economic and trade rules, step up promotion of institutional opening-up results, and create more application scenarios and cases; encourage more "Belt and Road" countries to establish national pavilions and sell local products, tout tourism resources and cultural exchanges, hold trade matching events, product exhibitions and other activities, and create a window for these countries to carry out trade cooperation and cultural exchanges in China.

Second, we would build national bases dedicated to the export of professional services. With the joint approval of the Ministry of Commerce and six other departments, the China Beidou Industrial Technology Innovation West Hongqiao Base has established a characteristic service export base in the field of geographic information services. Enterprises in the base are keeping pace with the Beidou system's global coverage. Their products are widely used in various industries such as transportation, maritime fisheries, surveying and mapping, and geographic information. Their products are exported to more than 100 countries and regions. The compound annual growth rate of geographic information service export value has reached 47.8% in the past three years. In the next phase, the commission will support the base to accelerate development of new models and new business forms of geographic information services; cultivate a group of comprehensive geographic information service providers at the middle and high end of the global value chain, expand the scale of service exports, and build the base into a cluster of spatial information industry with international influence.

Third, we plan to advance the development of cross-border e-commerce demonstration zones. Based on the advantages of the Hongqiao Business District Bonded Logistics Center (Type B) and the permanent venue of the China International Import Expo, the Hongqiao International CBD has become an important gathering area for cross-border e-commerce importers in the city. In the next step, the commission will vigorously advance the development of two cross-border e-commerce demonstration parks - the Hongqiao Import Commodity Exhibition and Trading Center and the Changning Airport Economic Demonstration Zone, create an online new economic platform, and build the Hongqiao Pinhui Livestreaming Base into a benchmark livestreaming base in Shanghai. At the same time, we will give full play to Hongqiao Airport's sprawling flight network within the Yangtze River Delta, tap the airport's capacity and potential, improve its cross-border e-commerce import and export supervision system, and enhance its cross-border e-commerce service capabilities.

Source: Information Office of Shanghai Municipal People's Government

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

(3) Beijing National Comprehensive Demonstration Zone

As introduced above, Beijing National Demonstration Zone promotes more attractive policies for foreign investments especially in finance service, internet information service, education, health and medical, science and technology, culture and entertainment service, telecommunication. For further details, please refer to the table below.