Issue 71

Shanghai Weekly Bulletin

No.4, 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.

Laws and Regulations

【National】

1. China Issues Measures for Promoting the Steady Growth of Foreign Trade 

【Keyword: Foreign Trade】

The Ministry of Commerce (MOFCOM) released on November 19, 2024 the Policy Measures for Promoting the Steady Growth of Foreign Trade, in an effort to promote the steady growth of foreign trade and consolidate and strengthen the positive momentum of economic recovery. 

Source:MOFCOM

2.  China Extends Visa-free Policy to More Countries

【Keyword: Visa-free Countries】

In order to further facilitate personnel exchanges between China and other countries, China has decided to expand the scope of visa-free countries. It will implement a trial visa-free policy for ordinary passport holders from Bulgaria, Romania, Croatia, Montenegro, North Macedonia, Malta, Estonia, Latvia and Japan from November 30, 2024 to December 31, 2025. China will also optimize its visa-free policy, including exchange visit purposes into the visa-free entry scope, and extending the period of visa-free stays allowed from the current 15 days to 30 days. 

Source:Consular Express

3. China Adjusts Export Tax Rebates for Various Products 

【Keyword: Export Tax Rebates】

The Ministry of Finance (MOF) and the State Taxation Administration (STA) recently issued the Announcement on Adjusting the Policy for Export Tax Rebates, stating that China will cancel export tax rebates for aluminum, copper and chemically modified animals, plants or microbial oils and fats, and lower the rebates for some refined oil products, photovoltaic products, batteries and non-metallic mineral products from 13 percent to 9 percent. The document will take effect on December 1, 2024. 

Source:MOF

【Shanghai】

1. Shanghai Vows to Promote High-quality Development of New Materials Industry

【Keyword: New Materials Industry】

Shanghai Municipal Commission of Economy and Informatization, together with other three municipal departments, recently issued the Shanghai Special Plan for Accelerating the Development of Materials Intelligent Engines (2025-2027). The document proposes 15 measures in five aspects, including building the foundation for intelligent engines, empowering the development with shared platforms, accelerating industrial innovation, improving the supply of production factors, and adopting guarantee measures. 

Source: Shanghai Municipal Commission of Economy and Informatization

2. Shanghai Promotes Pilot Registration and Evidence Documentation of Data IPRs  

【Keywords: Data IPRs; Registration and Evidence Documentation on a Pilot Basis】

Shanghai Intellectual Property Administration and Shanghai Data Bureau recently issued the Interim Measures of Shanghai for the Registration and Evidence Documentation of Intellectual Property Rights for Data Products. The regulation clarifies the definition of intellectual property rights (IPRs) for data products, as well as the application methods and materials, registration review, the change, revocation and cancellation of registration, and registration validity period. The regulation will come into effect on December 8, 2024.

Source: Shanghai Intellectual Property Administration

3. Shanghai Issues Rules for the Administration of Medical Device Business

【Keyword: Medical Devices】

Shanghai Municipal Medical Products Administration recently issued the Implementation Rules of Shanghai for the Supervision and Administration of Medical Device Business. The document further refines the provisions on the license application process, medical device automatic sales machines, the space requirements for business premises and warehouses, and the supervision and administration of third-party logistics companies for medical device business, which have not been clarified in superior laws. 

Source:Shanghai Municipal Medical Products Administration 

4. Lin-gang Updates Policy Measures to Support Headquarters Economy 

【Keyword: Headquarters Economy】

The Administration of Lin-gang Special Area issued on November 17, 2024 the revised Several Measures to Support the Development of Headquarters Economy in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone. According to the document, policy support will be provided to innovative enterprise headquarters recognized by the Office of the Leading Group of Strategic Emerging Industries of Shanghai, as well as regional headquarters of multinational companies, foreign-funded R&D centers, trade company headquarters, and private enterprise headquarters recognized by the Shanghai Municipal Commission of Commerce, and corporate headquarters and functional headquarters recognized by the Administration of Lingang Special Area. The measures will take effect on December 18, 2024 and remain valid until October 31, 2027.

Source:Administration of Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone

One Week in Shanghai

【Latest News】

1. Shanghai Magnolia Silver Award 2024 Presented

【Keyword: Magnolia Silver Award 2024】

The presentation ceremony of Shanghai Magnolia Silver Award 2024 was held on the afternoon of November 23 at the Grand Halls. 50 outstanding foreign nationals were presented the award for their significant contributions to the city’s development in the fields of trade, finance, technology, shipping, healthcare, education, culture, sports, agriculture and others. They come from 18 countries including Australia, Brazil, Canada, Croatia, Denmark, France, Germany, India, Israel, Italy, Japan, Republic of Korea,the  Philippines, Russia, Singapore, Türkiye, the United Kingdom, and the United States.

Source: International Services Shanghai

2. Shanghai Ranks First for Smart Manufacturing Development Among YRD Cities

【Keywords: Yangtze River Delta; Smart Manufacturing】

The Index Report for Smart Manufacturing Development in Yangtze River Delta Cities (2023 Edition) was recently released. Shanghai ranked first among all cities in the Yangtze River Delta (YRD) with a total score of 301 points. Smart manufacturing development in the YRD cities presents a pattern with Shanghai as the core leader, Suzhou, Hangzhou and Wuxi as three strong drivers, and Nanjing, Ningbo, Hefei and Changzhou as four key supporters. 

Source:Shanghai Municipal Commission of Economy and Informatization

3. Shanghai Hongqiao One-stop Service Center for Overseas Talent to Be Upgraded 

【Keywords: Overseas Talent; Service Center】

The function improvement plan of Shanghai Hongqiao One-stop Service Center for Overseas Talent was released on November 18, 2024. Based on the operations of the Center in the past six months since the unveiling of its new location and the practical experience of advanced countries and regions in serving overseas talent, Changning District launched the "3+4+7" function improvement plan, namely optimizing three existing services such as innovation and entrepreneurship guidance, introducing four new services such as 144-hour visa-free travel, and launching seven guidebooks for entry and exit affairs, investment, and entrepreneurship.

Source: Shanghai Changning

【Forum & Exhibition】

1. 2024 MBI Innovation and Development Forum to Kick off 

【Keyword: Marine Biopharmaceutical Industry】

The 2024 Marine Biopharmaceutical Industry (MBI) Innovation and Development Forum will be held in Lin-gang, Shanghai on November 28. The forum is jointly organized by the Shanghai Pharmaceutical Society and the Biopharmaceutical Committee of Shanghai Committee of China National Democratic Construction Association. It aims to strengthen the innovation of original and disruptive technologies, accelerate the translation and application of marine biomedicine research achievements, promote technology progress and industrial upgrading in the field of marine biotechnology and innovative drugs, and boost the high-quality and innovation-driven development of the MBI.

Source:Shanghai Lin-gang

【Competitive Event】

1. 2024 Shanghai Marathon to Kick off 

【Keyword: Shanghai Marathon】

The 2024 Shanghai Marathon will take place on December 1. A total of 27 international runners have been invited to participate in the race, including eight platinum marathon runners and 11 gold marathon runners, along with 20 invited Chinese runners.

Source:Shanghai Marathon

【Culture & Art】 

1. Exhibition of China and Beyond in the Eyes of Marco Polo Opens

【Keyword: Marco Polo】

To commemorate the 700th anniversary of the death of the famous Venetian traveler Marco Polo, the Shanghai Museum is set to hold a special exhibition "Wonders of the World: China and Beyond in the Eyes of Marco Polo" from November 23, 2024 to March 30, 2025. The exhibition highlights the dialogue between Eastern and Western civilizations, and brings together 204 pieces/sets of collections from 28 cultural institutions and museums in Venice, Rome, Florence and China, to tell the story of China's exchanges with the rest of the world in the era of Marco Polo.

Source:Shanghai Museum

2. Special Exhibition of Qiuxiapu Garden Opens at Jiading Museum

【Keyword: Qiuxiapu Garden】

Treasures of Ming Gardens - Special Exhibition of Qiuxiapu Garden in Jiading is set to be held at Jiading Museum from November 10 to December 18. This exhibition takes four perspectives, namely "Historical Changes of Qiuxiapu Garden", "Architectural Art of Qiuxiapu Garden", "Cultural Relics of Qiuxiapu Garden" and "Qiuxiapu Garden and Jiading Cultural Context". Through historical documents, cultural relics and stone carvings, collections of calligraphy and paintings, and historical images and films, the exhibition demonstrates the construction process, historical changes, cultural relics and related historical figures of Qiuxiapu Garden, reflecting the role and influence of the garden in the urban growth and cultural construction of Jiading.

Source:Jiading Museum

3. Exhibition of "Journey with COSMO Dreams: Exploring the Infinite" Presented

【Keyword: Journey with COSMO Dreams】

Contemporary artist Marina Fedorova's large solo exhibition titled Journey with COSMO Dreams: Exploring the Infinite recently opened at the Powerlong Art Museum, Shanghai. The exhibition combines space design and artworks, blurring the boundaries between reality and imagination. The audience will be in a multi-level "simulation" space, freely shuttle between the universe and the earth, and feel the power of nature and the vision of the future city. The exhibition will last until February 16, 2025.

Source:Powerlong Art Museum

【Corporate Activities】

1. Inteva Waigaoqiao Plant Has Become World's Largest Automotive Door Lock Manufacturing Base

【Keyword: Inteva】

Shanghai Inteva Automotive Door Systems Co., Ltd. held a ceremony at the Waigaoqiao Bonded Zone on November 20 to celebrate its 25th anniversary and unveil new products. Since its settlement in the bonded area, Inteva has achieved remarkable results in tech innovation, market development, and corporate social responsibility. Inteva's Waigaoqiao plant has now become the world's largest manufacturing base for automotive door locks, and its market share is the second highest in the Chinese market.

Source: Pudong Release

【Training】 

1. FIEs' Dual-Carbon Capacity Building Lectures to Be Held Next Month

【Keywords: Foreign-invested Enterprises; Dual Carbon Capacity】

In order to help foreign-invested enterprises (FIEs) better understand China's dual-carbon policy and promote their sustainable business development in Shanghai, the Green and Low-carbon Development Branch of Shanghai Foreign Investment Association plans to hold the sixth issue of the eight-session "FIEs' Dual-Carbon Capacity Building Lecture Series" - "Recycling" on December 3, 2024. Registration for the session is ongoing. 

Source:Shanghai Foreign Investment Association

Q&A

1: Officials with the National Bureau of Statistics answered questions at a press conference held by the State Council Information Office to introduce national economic operations in October 2024 - How do you think about the investment situation in October? You mentioned that the cumulative growth of infrastructure investment picked up for the first time in October. Can the uptrend be sustained in the future? Besides, what is the impact of the "two new" and "two key" policies on investment?

A1: Investment is also a very important part of economic operations. Based on our knowledge of the economic situation in the first ten months, although real estate investment is declining, China's investment has continued to expand, driven by rapid growth in manufacturing investment and large project investment after the policies of large equipment renewal and industry upgrade were introduced. These policies have supported stable investment growth and created favorable conditions for high-quality economic development. During the first ten months, we can observe the following economic trends:

First, the overall growth of investment is stable. In the first 10 months, fixed asset investment (excluding farmers) increased by 3.4% year-on-year, and remained stable at 3.4% for three consecutive months, with a clear stabilization trend. We have seen that investment has generally declined since the beginning of this year, but has remained basically stable in the past three months. The supporting role of large project investment is relatively obvious. In the first 10 months, the investment in projects with a planned total investment of more than 100 million yuan increased by 7.1% year-on-year, driving the growth of total investment by 3.8 percentage points, and promoting stable investment growth.

Second, the policy effect has been strengthened. The large-scale equipment renewal policy has started to show its economic effect. In the first ten months, investment in the purchase of equipment and tools increased by 16.1% year-on-year, much faster than the total investment growth, accounting for 14.8% of total investment, and its contribution to total investment growth exceeded 60%. With the continued progress of the "two key" construction, infrastructure investment has picked up. From January to October, infrastructure investment increased by 4.3% year-on-year, 0.2 percentage points faster than the previous month, the first rebound since March 2024. With the introduction of various policies and the recent progress of local government debt reductions, local governments will have more resources to strengthen infrastructure construction. From this perspective, there are solid conditions and foundations for the stable growth of infrastructure investment.

Third, investment in manufacturing grew rapidly. Driven by industrial upgrade, investment in equipment manufacturing and consumer goods manufacturing has posted robust growth and supported growth in manufacturing investment. In the first ten months, investment in manufacturing grew 9.3% year-on-year, 0.1 percentage point faster than the January-September period, with investment in equipment manufacturing and consumer goods manufacturing growing by 9.1% and 15% respectively.

Fourth, high-tech industry saw vigorous investment growth. Local regions are actively fostering and developing new quality productive forces and increasing investment in sci-tech innovations, and these efforts have driven growth in high-tech industry investment. In the first ten months, high-tech industry investment increased by 9.3% year-on-year, significantly faster than the growth of total investment. Among them, investment in aerospace and equipment manufacturing increased 34.5%, investment in professional technical services grew 32%, and investment in R&D and design services rose 11%.

In general, China's investment growth has remained stable recently, and the investment structure has continued to be optimized. In the next stage, as existing policies and new policies start to show effect, investment fund guarantees and project support will gradually improve, and investment is expected to continue to grow.

Source: State Council Information Office

Expert Perspective

A Brief Comment on the Revisions to the Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies

By Guo Kejun, Wei Haitao, Miao Yuqian, Ding Wei (Zhong Lun Law Firm)

The revised Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies (the "Measures") were promulgated on November 1, 2024, and will come into effect on December 2, 2024. It has clarified some hot issues, such as the shareholding ratio and lock-up period requirements for foreign strategic investment in A-share listed companies, whether their investment is subject to approval from the Ministry of Commerce, and how to make strategic investment. This article aims to analyze these issues and sort out some key points in the amended regulation.

I. Highlights of the revised Measures

(1) Expanding the scope of eligible investors

1. Allowing foreign natural persons to implement strategic investment 

Article 6 of the original Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies states that "an investor shall meet the following requirements: (1) being a legally established foreign corporate or other organization that operates in accordance with law…". It means the existing document just allowed foreign legal corporates or other organizations that met certain conditions to make strategic investment in A-share listed companies, while disallowed foreign natural persons to make the investment. Despite of the said provisions, there were still foreign natural persons who acquired issued shares of A-share listed companies in cash or assets, provided that the proportion of shares they could acquire was relatively low.

The Foreign Investment Law implemented on January 1, 2020 states that "for the purpose of the Law, foreign investment refers to the investment activity directly or indirectly conducted by a foreign natural person, enterprise or other organization (the "foreign investors")…". To align with the Law, which is a superior law, the 2020 Draft Law for Public Comment provides that "a foreign natural person with the corresponding risk identification and bearing capabilities" is an eligible foreign investor. The revised document continues the said provision, provided that the question of how to identify the "possession of the risk identification and bearing capabilities" still needs to be further clarified.