Issue 69

Shanghai Weekly Bulletin

No.2, November 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.

Catalogue

【National】

・China to Grant "Lancang-Mekong Visas" to Five Countries Along Mekong River

・China Implements Pollutant Discharge Permit System Across the Board

【Shanghai】

・Shanghai Issues Document to Facilitate Financing for MSMEs

・Shanghai Pushes for Transition to Green Marine Fuel

・Shanghai Financial Court Issues Typical Cases on Judicial Review of Financial Arbitration

【Latest News】

・7th CIIE Concluded

・Shanghai Launches 365 Trade Fair Website

・Shanghai Kicks off Boutique Consumption Month

・Shanghai Unveils Promotional Video "Shanghai Level Up" for Global Audiences

・Shanghai Investment Guide Available in Eight Languages

【Competitive Event】

・Patent Conversion and Utilization Competition Opens for Registration

【Culture & Art】

・Yin Xiuzhen Solo Exhibition "Piercing the Sky" Opens at the Power Station of Art

【Corporate Activities】

・23 Foreign-funded Projects to Be Settled in Shanghai

・ACWA Power to Establish Global Innovation Center in Lujiazui

Q&A

・Officials with the Ministry of Commerce (MOFCOM) answered questions at a press conference held by the State Council Information Office on the activities of China's International Consumption Center Cities in the Consumption Month: We have noticed that more than three years have passed since the State Council approved Beijing, Shanghai and three other cities to build international consumption center cities. What is the latest progress of this work? What do you plan to do in the next stage?

Expert Perspective

・MIIT's No. 107 Document Brings New Opportunities to FIEs in China

Laws and Regulations

【National】

1. China to Grant "Lancang-Mekong Visas" to Five Countries Along Mekong River

【Keywords: Five Countries Along the Mekong River; Lancang-Mekong Visas】

China has decided to issue "Lancang-Mekong Visas" to five countries along the Mekong River, granting five-year multiple-entry visas to qualified business people from the countries.

Source: International Services Shanghai

 

2. China Implements Pollutant Discharge Permit System Across the Board

【Keyword: Pollutant Discharge System】

The Ministry of Ecology and Environment (MEE) issued on November 3, 2024 the Plan for the Implementation of the Pollutant Discharge Permit System Across the Board. The document proposes 16 measures in five aspects, saying that that by 2027, the pollutant discharge permit system for stationary pollution sources will be further improved, discharge of major pollutants will be completely subject to permit control, and a system for the monitoring and management of stationary pollution sources with the pollutant discharge permit as an important tool will be implemented. Moreover, the full-factor, full-linkage, and full-cycle management of the pollutant discharge permits for stationary pollution sources will be basically realized, and the pollutant discharge permit system will function well.

Source: MEE

 

【Shanghai】

1. Shanghai Issues Document to Facilitate Financing for MSMEs

【Keywords: MSMEs; Financing】

The General Office of Shanghai Municipal People's Government recently issued the Action Plan for Improving the Establishment of Shanghai's Financing Credit Service Platform to Facilitate Financing for Micro, Small and Medium-sized Enterprises (MSMEs). The document outlines 12 measures in four aspects, stating that by the end of 2026, the availability and sense of gain of credit financing for MSMEs will be significantly improved, and an inclusive financing service system based on credit information will take initial shape.

Source: Shanghai Municipal People's Government

 

2. Shanghai Pushes for Transition to Green Marine Fuel

【Keywords: International Shipping; Transition to Green Marine Fuel】

Shanghai Municipal Development and Reform Commission, together with other two municipal departments, recently issued the Shanghai Work Plan for Promoting the Transition to Green Marine Fuel. The plan proposes 16 tasks in six aspects, including building a resource supply system that emphasizes both internal and external resources, creating a flexible, reliable and fully functional refueling service system, developing a leading and cutting-edge tech innovation system, and establishing an innovation-led, coordinated industrial ecosystem.

Source: Shanghai Municipal Development and Reform Commission

 

3. Shanghai Financial Court Issues Typical Cases on Judicial Review of Financial Arbitration

【Keywords: Financial; Arbitration】

Shanghai Financial Court recently released ten typical cases on judicial review of financial arbitration. These cases involve the determination of the effect of different arbitration clauses in bond issuance documents, the ascertainment of foreign laws in foreign-related arbitration agreements, the effect of an arbitration applicant's waiver of jurisdictional objections in arbitration proceedings, and the establishment of arbitration clauses in the main agreement of bond pledge repurchase transactions.

Source: Shanghai Financial Court

One Week in Shanghai

【Latest News】

1. 7th CIIE Concluded

【Keyword: CIIE】

The 7th China International Import Expo (CIIE) closed on November 10, 2024. The national exhibition of this year's expo brought together 77 countries and international organizations from five continents, with an exhibition area of 30,000 square meters. Countries of honor include France, Malaysia, Nicaragua, Saudi Arabia, Tanzania, and Uzbekistan. The 360,000-square-meter enterprise exhibition has seen a record of 3,496 exhibitors from 129 countries and regions, including 186 enterprises and institutions that have participated all the seven expos. The total value of tentative deals for one-year purchases of goods and services reached US$80.01 billion, up 2% from the 6th CIIE. The six-day event has seen the gathering of international politicians and corporate executives in Shanghai, the opening of high-quality forums at which a consensus for opening-up has been built, and the signaling of openness through professional matchmaking activities. It demonstrates China's determination and confidence in promoting high-standard opening-up and the development of an open world economy.

Source: CIIE

 

2. Shanghai Launches 365 Trade Fair Website

【Keyword: 365 Trade Fair Website】

Shanghai has officially launched the 365 Trade Fair website 365tradefair.com. The website aims to further promote investment through combination of online and offline exhibitions and combination of exhibitions and trade. It can speed up the development of Shanghai as an international conference and exhibition city and an international trade center. It currently has the sections such as CIIE, Events, Services, and News. Focusing on the promotion of exhibition and trade, it provides businesses with year-round services.

Source: International Services Shanghai

 

3. Shanghai Kicks off Boutique Consumption Month

【Keywords: Consumption Center City; Boutique Consumption Month】

The launch ceremony of the 2024 China International Consumption Center City Boutique Consumption Month was recently held in Shanghai. The event adopts the "1+4+N" format, and will feature a boutique debut season, a series of consumption promotion activities around the four major sectors of boutique shopping, boutique food, boutique tourism, and boutique performances, aiming to increase the amount of spending and improve consumption experience.

Source: Shanghai Release

 

4. Shanghai Unveils Promotional Video "Shanghai Level Up" for Global Audiences

【Keyword: Shanghai Level Up】

To mark the opening of the 7th China International Import Expo, the Information Office of Shanghai Municipal People’s Government and Shanghai Daily have unveiled a promotional video titled Shanghai Level Up for global audiences.

Source: Shanghai Release

 

5. Shanghai Investment Guide Available in Eight Languages

【Keyword: Shanghai Investment Guide】

Shanghai Investment Guide, which was released on November 6, 2024, is available in eight languages, including Chinese, English, French, German, Spanish, Italian, Arabic and Japanese. The guide is divided into four parts, namely This Is Shanghai, Development Priorities, Key Areas, and Investment Services, covering an overview of Shanghai, national strategies, industrial layout, regional layout, business environment, policy support, resource support and other details that are interested by entrepreneurs and investors.

Source: Invest Shanghai

 

【Competitive Event】

1. Patent Conversion and Utilization Competition Opens for Registration

【Keyword: Yangtze River Economic Belt High-value Patent Conversion and Utilization Competition】

The Yangtze River Economic Belt High-value Patent Conversion and Utilization Competition, the first large-scale event in the field of intellectual property rights in the Yangtze River Economic Belt, has opened for registration. The registration deadline is November 25, 2024, and the registration website is https://cgs.7ipr.com.

Source: Shanghai Intellectual Property Administration

 

【Culture & Art】

1. Yin Xiuzhen Solo Exhibition "Piercing the Sky" Opens at the Power Station of Art

【Keywords: Piercing the Sky; Yin Xiuzhen】

From November 9, 2024 to February 16, 2025, the Power Station of Art (PSA) is set to present a large-scale solo exhibition of Chinese female artist Yin Xiuzhen, "Piercing the Sky". With more than 20 masterpieces of different materials and vocabularies, the exhibition not only presents the artist's iconic works and latest thoughts, but also leads the audience on a journey of exploration that spans the universe and the subtleties within.

Source: Power Station of Art

 

【Corporate Activities】

1. 23 Foreign-funded Projects to Be Settled in Shanghai

【Keywords: Foreign-funded Projects; Invest in China】

At the Invest in China · 2024 Shanghai City Investment Promotion Conference, 13 districts in Shanghai signed contracts with 23 foreign-funded projects, which involve biomedicine, high-end equipment, advanced materials, fashion consumption, green and low-carbon development, and other key areas for development.

Source: Shanghai Release

 

2. ACWA Power to Establish Global Innovation Center in Lujiazui

【Keyword: ACWA Power】

ACWA Power (Shanghai) Technology Co., Ltd., a subsidiary of ACWA Power, recently signed an agreement with the Lujiazui Office of the Administration of the China (Shanghai) Pilot Free Trade Zone to locate ACWA Power's Global Innovation Center in Lujiazui. The center will leverage on China's complete supply chain and leading renewable energy technologies to accelerate the research and development of new technologies and new products to support the group's global layout and project development.

Source: Pudong Release

 

Q&A

1: Officials with the Ministry of Commerce (MOFCOM) answered questions at a press conference held by the State Council Information Office on the activities of China's International Consumption Center Cities in the Consumption Month: We have noticed that more than three years have passed since the State Council approved Beijing, Shanghai and three other cities to build international consumption center cities. What is the latest progress of this work? What do you plan to do in the next stage?

A1: Cultivating and building international consumption center cities is a major decision made by the CPC Central Committee with a view to building a new development pattern. The MOFCOM has conscientiously implemented the decision and worked with relevant departments to guide the five cities to target the keywords of "international", "consumption" and "center", so as to achieve positive progress and results. At present, the combined retail sales of social consumer goods in the five cities account for more than 13% of the national total, the number of Chinese time-honored brands accounts for 32% of the national total, the import of consumer goods accounts for more than 50% of the national total, and the departure tax refund sales account for about 80% of the national total.

First, high-quality global consumption resources are concentrating at an accelerated pace. Over the past three years, the five cities have targeted to increase the import of high-quality consumer goods, expand opening-up of the service industry, strengthen brand cultivation, and build a highland for consumption upgrades. Shanghai has developed into a distribution center of imported consumer goods, with more than 90% of world-renowned high-end brands having set foothold in the city. Beijing has increased the supply of premium services. Based on its advantages as a city that has held both summer and winter Olympics, Beijing has hosted a number of high-level international sporting events, and developed landmark projects such as Universal Studios, Liangma River Waterfront, and Chaoyang International Light Festival. In the first three quarters of 2024, Beijing's service consumption increased 7.1% year-on-year. Guangzhou has introduced a lot of original cultural performances, and the city staged more large and medium-sized performances in 2023 than any other city in China.

Second, the development of iconic business districts has produced initial success. Over the past three years, the five cities have accelerated the improvement of urban commercial space, pushed for high-quality development of pedestrian streets, and promoted the construction of smart business districts, making shopping more comfortable and convenient for consumers. Shanghai has built two international-standard consumption clusters in the east and west, covering core business areas such as Nanjing Road and Huaihai Road. Beijing has completed the renovation and upgrading of Wangfujing and Sanlitun. Wangfujing and nearby commercial areas received more than 100 million visitors in 2023. Guangzhou has renovated and upgraded historical and cultural blocks such as Beijing Road and Yongqingfang, so that the "old flavor" and "new formats" can complement each other. Tianjin has pushed for the reuse of idle commercial properties and promoted the iterative upgrade of some business districts like Jinjie and Wudadao. Chongqing Guanyinqiao has guided the staggered development of department stores and shopping centers, and introduced a variety of business formats such as oceanariums, cable cars, and animations, with the highest daily visitors exceeding one million.

Third, the ability to lead consumer innovation has continued to improve. Over the past three years, the five cities have promoted the first-store economy, developed new business formats and models, and created new consumption scenarios to bolster market vitality. Shanghai was the first city to announce policies to support the first-store economy, and the city has introduced more than 3,000 first stores from 2021 to 2023. Tianjin has been pushing for the revitalization of historical buildings, developing characteristic consumption scenes such as Anligan Art Center and Min Yuan Xi Li Culture & Invention District. Tianjin has transformed the site of a thermal power plant into a shopping center, becoming a model project of urban renewal. Chongqing has developed 15-minute living circles, and conducted micro-renovation of the Minzhu Village community by integrating new business formats such as coffee shops, teahouses, restaurants and bars, and community canteens, bringing fresh life to the old community.

Fourth, the international consumption environment is constantly being optimized. Over the past three years, the five cities have continued to improve the payment environment for foreigners, making it "convenient and desiring for global consumers to come to China". Shanghai held the "Shanghai Summer" International Consumption Season, and international tourists reached 4.613 million in the first three quarters of 2024, a year-on-year increase of 100%. Beijing has created inbound consumer-friendly business districts such as Blue Harbor, and increased the coverage of foreign card POS machines in key business districts, scenic spots, four-star and five-star hotels to 95%. Foreigners can also use foreign bank cards to pay for metro bills. In the first three quarters, inbound tourists increased by 2.1 times. Guangzhou has improved foreign-related services and issued China's first local regulation on foreign language signs in public places. The 136th Canton Fair, which was just concluded in Guangzhou, received about 200,000 buyers from all over the world in the first and second phases.

In the next stage, the MOFCOM will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, organize themed activities during the consumption month, guide the five cities to create a number of commercial areas, exhibitions, and festival activities with international influence, develop more "must-buy" products, and create more "must-visit and must-play" scenes to meet the people's needs for a better life.

Source: State Council Information Office

 

Expert Perspective

MIIT's No. 107 Document Brings New Opportunities to FIEs in China

By: Chen Jihong, Sun Ruxi (Zhong Lun Law Firm)

[Continuing from the Last Issue]

(II) Application and evaluation procedures for pilot businesses

The pilot businesses will not be opened outright after the publication of the circular. The procedures are divided into the following three steps:

The governments of the pilot regions shall formulate the pilot implementation plan and submit it to the MIIT; after the MIIT evaluated and approved the plan, the pilot region can carry out the pilot business; and related enterprises shall apply to the MIIT for approval to operate telecommunications business in accordance with the specific regulations/plans to be released.

According to previous practices at free trade zones, the "pilot approval" should have the same legal effect as the "Telecommunications Business License". The "pilot approval" has a certain validity period. The validity period of the "pilot approval" in the free trade zones is three years, and the validity period of approval for this pilot opening-up shall be determined in accordance with subsequent regulations.

(III) Requirements for applying for relevant business

According to the MIIT's explanations about the circular, foreign-invested telecommunications enterprises that offer the aforementioned value-added telecommunications services in the pilot areas will be managed in accordance with the principle of "consistency between domestic and foreign investment". Foreign-invested enterprises must obtain relevant approvals for telecommunications business operations in accordance with the Telecommunications Regulation and other regulations, and comply with relevant provisions of the pilot approvals in their telecommunications business operations, and accept and cooperate with the supervision and management of telecommunications management agencies and relevant competent departments.

According to the Measures for the Administration of Telecommunications Business Licenses, applicants must meet the following conditions to operate value-added telecommunication business:

The operator is a legally-established company, has the funds and professionals that are suitable for carrying out the business, has the credibility or ability to provide long-term services to users, has a minimum registered capital of RMB 1 million for businesses operating within a province, autonomous region or municipality, has a minimum registered capital of RMB 10 million for businesses operating nationwide or across different provinces, autonomous regions or municipalities, and has the necessary venues, facilities and technical solutions, and the company, its major investors and key executives are not on the list of dishonest telecommunications business operators.

In addition, enterprises that intend to apply for pilot business should also meet the substantive requirements of the business application, depending on the type of business to be applied for. For example, according to the Circular of the Ministry of Industry and Information Technology on Further Regulating the Market Access of Internet Data Center and Internet Service Provider (MIIT No.552 Document), the substantive requirements for IDC and ISP business applications include but are not limited to:

meeting the requirements as specified in the MIIT No.552 Document in terms of funds, personnel, sites, facilities and technical solutions, and having passed four technical evaluations conducted by a third-party organization, including evaluation of the computer room operation safety system, evaluation of the access resource management platform, evaluation of the website filing system and evaluation of the information security management system.

[To be continued]