Issue 72

Shanghai Weekly Bulletin

No.1, December 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-bto-date with the latest foreign-related policies and developments in Shanghai.

Laws and Regulations

【National】

1. China Promotes Reform and Innovation-driven Development of Digital Trade

【Keyword: Digital Trade】

The general offices of the Communist Party of China Central Committee and the State Council recently released the Guidelines for Promoting the Reform and Innovation-driven Development of Digital Trade. The document outlines 18 tasks in four areas, including supporting the growth of digital trade sectors and businesses, advancing institutional opening in digital trade, enhancing the governance system, and reinforcing organizational support.

Source: Website of the Chinese Government

2. China to Cancel Overseas Warehouse Filing for Cross-border E-commerce Exports

【Keyword: Cross-border E-commerce】

The General Administration of Customs (GAC) released on November 25, 2024 the Announcement on Boosting the Development of Cross-border E-commerce Exports. The document cancels the filing requirement for overseas warehouses in cross-border e-commerce exports, facilitates the procedures for declaring export documents, expands the pilot program of “inspection before shipment” for exports of Less Than Container Cargo Load (LCL), and promotes the supervision model that allows cross-customs return of goods in cross-border e-commerce retail exports. The document is set to take effect on December 15, 2024.

Source: GAC

3. MFA Releases Frequently Asked Questions on Visa-free Entry into China

【Keyword: Visa-free】

The Ministry of Foreign Affairs (MFA) recently released the Frequently Asked Questions on Visa-free Entry into China in both Chinese and English languages. There are 11 questions, including “whom does the visa waiver apply to?”, “will the purpose of intended stay in China be examined by Chinese border inspection authorities when a foreign national enters China? How will it be done? Are other documents needed for entering China in addition to a passport?” and others.

Source: Consular Express

4. China's Immigration Hotline to Include Russian, Japanese and Korean Language Support

【Keyword: 12367】

China's 12367 immigration service hotline has been expanded to include Russian, Japanese and Korean language support starting November 26, adding to its existing Chinese and English services. For users who choose any of the three languages, the platform will establish a three-way voice call between the user, a translator, and a call operator, and make inquiry response featuring immediate answering and handling. The service enhancement aims to provide more convenient immigration and entry-exit services for foreign nationals in China.

Source: International Services Shanghai

【Shanghai】

1. Shanghai Launches Online Application for Expanding Opening-up of Value-added Telecom Services

【Keywords: Value-added Telecommunications Services; Pilot Program of Opening-up】

Shanghai Municipal Commission of Economy and Informatization and Shanghai Municipal Communications Administration issued on November 25 the Circular on Launching the Pilot Program of Expanding the Opening-up of Value-added Telecommunications Services. Starting from the day, foreign-invested enterprises may apply for the operation of Internet data centers (IDCs), online data processing and transaction processing and other telecommunications services by wholly foreign-owned entities in the pilot areas in Shanghai, and deeply participate in China's computing power, cloud services and other markets.

Source: Shanghai Municipal Commission of Economy and Informatization

2. Shanghai Accelerates Low-altitude Flight Service Management Capacity Building

【Keyword: Low-altitude Flight】

Shanghai Municipal Transportation Commission recently issued the Shanghai Action Plan for Accelerating the Building of Low-altitude Flight Service Management Capacity, which, driven by scenario application needs, will enhance low-altitude flight service management capacity, ensure the safety and order of all types of low-altitude flights, and support the high-quality development of the low-altitude industry.

Source: Shanghai Municipal Transportation Commission

3. Benchmarks for Imposing Tax-related Administrative Penalties in East China Unveiled

【Keywords: Tax; Administrative Penalties; Discretionary Benchmarks】

Shanghai Municipal Tax Service, State Taxation Administration, together with tax authorities in other nine provinces and cities, released on November 25 the Discretionary Benchmarks for Imposing Tax-related Administrative Penalties in East China. The document lists 55 tax violations in seven categories, namely violation of tax registration rules, violation of rules on account books and vouchers, violation of tax declaration rules, violation of tax collection rules, violations in tax inspection, violation of rules for the management of invoices and documents, and violation of tax guarantee rules.

Source: Shanghai Municipal Tax Service, State Taxation Administration

One Week in Shanghai

【Latest News】

1. Shanghai Bar Association Lists Overseas Service Outlets of Shanghai Law Firms

【Keywords: Shanghai Law Firms; Overseas Service Outlets】

Shanghai Bar Association recently released the Guide for Overseas Service Outlets of Shanghai Law Firms (Yellow Pages), which lists a total of 79 overseas service outlets of 27 Shanghai law firms. The outlets are distributed in dozens of cities across nearly 30 countries and regions in Asia, America, Europe, Oceania and Africa (as of August 2024).

Source: Shanghai Bar Association

【Forum & Exhibition】

1. 2024 Dishui Lake Emerging Finance Conference to Kick off

【Keyword: Dishui Lake Emerging Finance Conference】

The 2024 Dishui Lake Emerging Finance Conference, themed on "Further Deepen Comprehensive Reform, Build a High-level Emerging Financial Center", will be held on December 6-7 at the Lingang Center in the Lingang Special Area of China (Shanghai) Pilot Free Trade Zone.

Source:Shanghai Lingang

2. SHFIA to Hold ESG Forum and Inauguration Ceremony of ESG Branch

【Keyword: Foreign-Invested Enterprises in Shanghai; ESG Forum】

On December 5, 2024, Shanghai Foreign Investment Association (SHFIA) will hold the 2024 ESG Forum of Foreign-Invested Enterprises and the Inauguration Ceremony of the Association’s ESG Branch for Regional Headquarters of Multinational Corporations, and release the Excellent ESG Reports of Regional Headquarters of Multinational Corporations in Shanghai.

Source: Shanghai Foreign Investment Association

【Competitive Event】

1. 2024 Shanghai Marathon Concluded

【Keyword: Shanghai Marathon】

The 2024 Shanghai Marathon began on the morning of December 1 at the Bund on Zhongshan Road (E-1). This is the first race held after Shanghai Marathon became a candidate race for the Abbott World Marathon Majors. Samsom Amare from Eritrea won the men’s full marathon, clocking 2 hours 6 minutes and 26 seconds. Ethiopian athlete Bekelech Gudeta Borecha triumphed in the women's category, finishing in 2 hours 25 minutes and 21 seconds. After the event, the organizer announced that the 2025 Shanghai Marathon would be held on November 30.

Source: International Services Shanghai

【Culture & Art】

1. Exhibition of Excellent Works at 2nd Shanghai Travel Photography Competition Opens

【Keyword: Travel Photography Competition】

The award ceremony and exhibition of outstanding works at the 2nd Shanghai Travel Photography Competition was held at Shanghai Chunqiu Art Space on November 28, 2024. The list of "Most Beautiful Moments" was announced on site and awards were presented to the winning works. On the same day, 100 outstanding photographs were exhibited online and offline. The exhibition will last for half a month.

Source:Shanghai Tourism

2. Italian Contemporary Art Invitational Exhibition Opens

【Keyword: Italian Art Exhibition】

The "Italy Today" Italian Contemporary Art Invitational Exhibition recently opened at Shanghai Haipai Art Museum. The exhibition featured about 100 masterpieces by 20 Italian artists, demonstrating the diversity and profound connotations of Italian contemporary art. The exhibition will last until December 15, 2024.

Source:Haipai Art Museum

3. Special Exhibition Titled Another Avant-Garde Photography 1970-2000 Opens

【Keyword: Photography Exhibition】

A special exhibition titled Another Avant-Garde Photography 1970-2000 is set to be held at the West Bund Museum from November 8, 2024 to February 16, 2025. This is the first large-scale public exhibition of the photography collection of the Center Pompidou in China. The exhibition presents some 200 groundbreaking works by more than 30 avant-garde artists through ten chapters, linking the avant-garde history of how photography has evolved from recording the artistic process to becoming an independent art.

Source:China Shanghai International Arts Festival

【Corporate Activities】

1.ebm-papst "ONE Shanghai" Recognized as MNC's Regional Headquarters

【Keyword: ebm-papst】

The head office of ebm-papst Electric Motors (Shanghai) Co., Ltd. was recently recognized as the regional headquarters of a multinational corporation (MNC) in Greater China by the Shanghai Municipal Commission of Commerce. ebm-papst inaugurated the headquarters in March. It is named "ONE Shanghai" and is located at the Jingu Intelligent Terminal Manufacturing Base, Jinqiao Development Zone. The complex integrates office, R&D, warehousing and production functions, spanning 33,000 square meters.

Source: Pudong Release

Q&A

1: Officials with the Ministry of Foreign Affairs answered questions at a regular policy briefing held by the State Council Information Office. The Several Policy Measures on Promoting the Stable Growth of Foreign Trade proposed to "attract and facilitate cross-border exchanges of business personnel, and advance the negotiations on visa exemption agreements with more countries." What measures have we taken to facilitate foreign nationals coming to China? Can you introduce the situation in this regard?

A：In recent times, the Ministry of Foreign Affairs has continued to introduce visa facilitation measures to improve the travel experience of foreign visitors.

First, we are making personnel exchanges easier. Over the past year, we have signed visa exemption agreements with six countries - Singapore, Thailand, Kazakhstan, Antigua and Barbuda, Georgia, and the Solomon Islands. We have now realized visa exemption with 25 countries. We have also introduced unilateral visa exemptions for citizens from 29 countries, including France and Germany. So far, China has concluded visa exemption agreements for different types of passports with 157 countries and regions. In addition, foreigners can also use the visa exemption policies for transit, cruise ships, and at Hainan Island to travel to China or conduct business activities.

Second, we are making personnel exchanges more convenient. We have launched a new version of the Chinese visa application form, which simplifies 34 percent of the items and greatly shortens the time to fill in the form. Chinese embassies and consulates have abolished the visa appointment system, expanded the scope of fingerprint exemptions, and exempted all applicants for short-term visas and staying no more than 180 days from fingerprint collection. After the exemption of visa appointments and fingerprint collection, visa procedures for foreigners to come to China have been shortened. In addition, we have cut visa fees by 25 percent, and the cost of travel to China has been further reduced.

Third, we are making personnel exchanges more frequent. Since the start of this year, we have reached arrangements with Brazil and Australia to issue multiple-entry visas for ten years and five years, issued five-year multiple-entry visas to citizens from Central and Eastern European countries, and issued five-year multiple-entry visas to business people from countries along the Mekong River. At the same time, we participated in the APEC Business Travel Card Program to facilitate the exchanges between Chinese and business personnel in the Asia-Pacific region. We also issued five-year multiple-entry visas to foreign residents in the Hong Kong and Macao Special Administrative Regions, so that they can travel to the mainland more easily, and the arrangement is part of efforts to expedite construction of the Guangdong-Hong Kong-Macao Greater Bay Area.

In the next stage, the Ministry of Foreign Affairs will continue to create more convenience for exchange visits between Chinese and foreign nationals, especially business people, and serve high-quality development and high-level opening up to the outside world.

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)

[Continuing from the Last Issue]

I Highlights of the Revised Measures

(1) Expanding the scope of eligible investors

2. Relaxing asset requirements for foreign investors

According to Article 6 of the original Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies, investors need to have "total overseas assets of no less than US$100 million or total overseas assets under management of no less than US$500 million; or their parent companies must have total overseas assets of no less than US$100 million or total overseas assets under management of no less than US$500 million."

In order to facilitate and promote the introduction of more long-term funds into listed companies, the revised document relaxes asset requirements for non-controlling foreign shareholders,  stipulating that foreign investors must have "actual assets of no less than US$50 million or total actual assets under management of no less than US$300 million; if a foreign investor becomes a controlling shareholder of a listed company, the total actual assets must be no less than US$100 million or the total actual assets under management must be no less than US$500 million."

(2) Enriching the means of strategic investment

According to Article 5 of the original measures, "Investors making strategic investment shall meet the following requirements: (a) Acquiring A-shares of listed companies by means of agreed transfer, targeted issuance of new shares by listed companies, and other methods prescribed by national laws and regulations...", that is, foreign investors can make strategic investment in Chinese listed companies through two means - buying new shares issued by the listed companies or signing a share transfer agreement with existing shareholders.

According to Article 2 of the revised measures, "The measures shall apply to foreign investors acquiring and holding A shares of listed companies in the medium and long term through targeted issuance of new shares by listed companies, share transfer by agreement, tender offer or other methods prescribed by national laws and regulations." That is, in addition to the original investment methods, foreign investors are allowed to make strategic investment through tender offer.

Besides, according to Article 33 of the regulation and the "Response of the Ministry of Commerce, the China Securities Regulatory Commission on the Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies (Revised in 2024)", foreign investors purchasing stocks or depository receipts of listed companies through QFII/RQFII, Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Shanghai-London Stock Connect do not need to comply with the provisions of the regulation, but must comply with relevant regulatory rules of the securities market.

[To be Continued]