Issue 75

Shanghai Weekly Bulletin

No.4, 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-to-date with the latest foreign-related policies and developments in Shanghai.

Laws and Regulations

【National】

1. China Extends Visa-free Transit Stays to 240 Hours

【Keywords: Foreign Nationals; Transit】

The National Immigration Administration (NIA) issued a statement on December 17, announcing that it would fully relax and optimize the visa-free transit policy. Specifically, the stay duration for foreign nationals eligible for visa-free transit has been extended from the previous 72 hours and 144 hours to 240 hours (10 days), 21 ports of entry have been added for visa-free transit travelers, and the allowed areas of stay for these individuals have been further expanded.

Source: NIA

2. China Further Optimizes Cross-border Integrated Cash Pooling Policies for MNCs

【Keywords: MNCs; Integrated Cash Pooling of Foreign and Domestic Currencies; Cash Pooling】

The People's Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) recently announced the optimization of the pilot policies for cross-border integrated cash pooling of foreign and domestic currencies in 10 provinces, municipalities and cities, including Shanghai and Beijing. Under the policies, multinational companies (MNCs) are allowed to conduct cross-currency lending among their domestic subsidiaries to facilitate cross-border payments under current account activities, the filing process and the review of materials related to foreign payments and receipts are simplified, and MNCs are permitted to determine the proportion of external debt and overseas lending based on macroprudential principles by themselves. The policies also allow MNCs' headquarters to manage centralized payments and receipts between domestic and foreign subsidiaries through their main domestic accounts. 

Source: International Services Shanghai

3. China Calls for Leveraging Domestic Trade Credit Insurance 

【Keyword: Trade Credit Insurance】

The National Development and Reform Commission (NDRC), together with other six central departments, recently issued the Guidelines on Leveraging Domestic Trade Credit Insurance to Advance the Integration of Domestic and Foreign Trade. The document highlights 13 measures in four aspects, including increasing support for key enterprises to use domestic trade credit insurance, deepening the supply-side reform of the insurance, improving supporting policies, and ensuring effective implementation and follow-up evaluation. 

Source: NDRC

【Shanghai】

1. Shanghai Customs Introduces Measures to Facilitate Customs Clearance

【Keywords: Port; Business Environment】

Shanghai Customs recently outlined 26 measures to optimize port business environment and facilitate customs clearance for enterprises. These measures include strengthening fundamentals and fostering innovation to boost the momentum of foreign trade, focusing on user needs to facilitate cross-border trade, implementing targeted policies to optimize the import and export structure, and highlighting the role in promoting local economic growth. 

Source:Shanghai Customs 12360 Hotline

2. Shanghai Issues New Rules Governing Key Trademark Protection List

【Keywords: Key Trademarks; Protection】

Shanghai Intellectual Property Administration recently issued the Measures for the Management of Key Trademark Protection List in Shanghai. The document stipulates that five types of registered trademarks, including well-known trademarks recognized by the China National Intellectual Property Administration and the former State Administration for Industry and Commerce, trademarks with high popularity, and trademarks that have been infringed and counterfeited, are eligible for inclusion in the protection list. The measures will take effect on February 1, 2025 and remain valid until January 31, 2030.

Source:Shanghai Intellectual Property Administration

3. Shanghai Updates Rules on Credit Information about Science and Technology-related Activities 

【Keyword: Credit Information About Science and Technology-related Activities】

Shanghai Municipal Commission of Science and Technology recently issued the Shanghai Measures for the Management of Credit Information about Science and Technology-related Activities. The document includes details on the sources and classification of research misconduct information, and the levels of research misconduct, improving the mechanism for information query and repair. It will take effect on January 1, 2025 and remain valid until December 31, 2029.

Source:Shanghai Municipal Commission of Science and Technology

4. Shanghai Enhances Administrative Adjudication of Patent Infringement Disputes

【Keywords: Patent Infringement Disputes; Administrative Adjudication】

Shanghai Intellectual Property Administration and Shanghai Justice Bureau recently released the Action Plan of Shanghai on Strengthening the Administrative Adjudication of Patent Infringement Disputes in New Era, with a view to promoting the resolution of prominent issues in the administrative adjudication of patent infringement disputes in Shanghai. The document proposes measures in eight aspects, covering the entire chain of patent administrative adjudications at the municipal and district levels.

Source: Shanghai Intellectual Property Administration

One Week in Shanghai

【Latest News】

1. Meeting on "Shanghai, My City" Short Video Collection Activities Held 

【Keyword: Short Video Collection Activities】

A conclusion meeting on "Shanghai, My City" short video collection activities was held at the Shanghai Museum East on the evening of December 22. Over 350 Chinese and foreign guests, including representatives of organizations, experts, expats participating in the creation of the short videos and their families and friends, as well as foreign friends in Shanghai, attended the meeting. Launched in February of this year, the program received over 200 submissions within six months, and 42 outstanding works were selected for online showcase.

Source:Foreign Affairs Office of Shanghai Municipal People’s Government

2. Users of Selected Overseas E-wallets Can Pay in China Via WeChat Pay

【Keywords: Foreign Tourists in China; WeChat Pay】

UnionPay International recently announced a partnership with WeChat Pay to support overseas e-wallet users to pay via scanning WeChat Pay codes. Eight wallets including Bank of China (Hong Kong) BoC Pay, Octopus, PayMe by HSBC, Tap & Go, Bangkok Bank Mobile Banking, K PLUS in Thailand, NAVER Pay in Republic of Korea, and ICBC Mobile Banking (ICBC Pay) in Malaysia are the first to support this function, so that foreign nationals can have more mobile payment options when they come to China.

Source:Pudong Release

【Forum & Exhibition】

1. CMAIC 2024 Held in Shanghai

【Keyword: Medical; Artificial Intelligence】

Under the theme of "Artificial Intelligence Empowers Healthcare", the China Medical Artificial Intelligence Conference 2024 (CMAIC 2024) was held in Xuhui, Shanghai on December 14. The conference has seen the release of "Shanghai Declaration" on China's Medical Artificial Intelligence, the disclosure of representative algorithms and the Haibu Medical Large Model, and the inauguration of the China Artificial Intelligence Medical Device Innovation Alliance.

Source: Shanghai Municipal Commission of Economy and Informatization

【Culture & Art】

1.30th Anniversary of Yuyuan Garden Lantern Festival to Kick off Next Month

【Keyword: Yuyuan Garden Lantern Festival】

The Yuyuan Garden Lantern Festival, celebrating its 30th anniversary with a special China Lantern Exhibition, will begin on January 1 and last until February 12, 2025. The festival will present glamorous lanterns to welcome the Chinese New Year, which has recently been added to the UNESCO Representative List of the Intangible Cultural Heritage of Humanity. 

Source: Shanghai Tourism

2. Bayreuth Festival Launches Three-year Opera Plan in Shanghai

【Keyword: Bayreuth Festival】

The world-famous Bayreuth Festival recently announced a three-year opera plan to stage three Wagner opera shows in Shanghai from 2025 to 2027. The 2022 version of Bayreuth's opera "Tristan and Isolde" will be the first in the three-year opera plan and will be staged at the Shanghai Grand Theater. This will also be the premiere of the opera in Shanghai.

Source: Shanghai Huangpu

【Corporate Activities】

1. Jointown to Build International Supply Chain Platform in Waigaoqiao

【Keyword: Jointown】

Jointown, the largest private pharmaceutical distribution company in China, signed a contract with New Development Company under Waigaoqiao Group, to build an international supply chain platform in Waigaoqiao. The project operator, Shanghai Jointown International Supply Chain Management Co., Ltd., will provide an international supply chain platform for such services as procurement, storage and transportation of medicines and medical devices for upstream and downstream customers and Jointown subsidiaries in the United States, the Middle East, and Hong Kong, China.

Source: Pudong Release

Q&A

Q1:A director of the Foreigners Management Department of the National Immigration Administration answered press questions at a press conference to introduce the latest relaxation and optimization of the visa-free transit policy - What do you want to remind foreign tourists who are exempt from transit visas?

A1: Foreign nationals applying for 240-hour visa-free transit in China have to pay attention to the following points:

First, choose an appropriate transit port. Citizens of 54 countries that are eligible for the 240-hour visa-free transit policy can enter China through any of the 60 designated ports of entry (PoEs), including Beijing and Shanghai. The policy is not applicable for other PoEs for the time being.

Second, complete the entry formalities. Eligible foreign passengers who hold their own passports with a validity period of no less than three months, and who have booked a ticket that stops in China and travels to a third country or region within 240 hours, can apply to the port inspection authority and enter China after completing the transit formalities as required by law.

Third, pay attention to the scope of activities. After entering China, foreign tourists can sight-see in designated areas and travel across 24 provinces (autonomous regions and municipalities) such as Beijing. During the trips, foreign tourists should plan the travel routes according to the permitted stay and activity areas, and avoid staying beyond the scope.

Fourth, comply with relevant provisions during the stay in China. During their stay in China, foreign travelers must comply with Chinese laws and regulations and register at the hotel or police station within 24 hours after entry. They can stay in China for no more than 240 hours, and they can engage in tourism, business, and family visits. If they need to stay in China for longer than the prescribed time limit or beyond the permitted stay area due to emergency and justifiable reasons or force majeure circumstances, they should apply for a stay permit in advance with the entry and exit administration of the local public security bureau.

China's immigration authorities will issue reminder sheets to foreign travelers when they arrive at the port of entry and provide guidance on transit visa-free policy. At the same time, the National Immigration Administration's 12367 24-hour service hotline provides multilingual policy consultation services. The "12367 Online Service" on the official website also provides real-time response services to answer questions and resolve problems for Chinese and foreign citizens, and effectively improve the convenience for foreign citizens during their travel in China.

Source:National Immigration Administration

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

(5) Approval from the Ministry of Commerce is not required

According to Article 3 of the original document, "with the approval of the Ministry of Commerce, investors may make strategic investment in listed companies in accordance with these measures."

According to the Foreign Investment Law and its implementing regulations, however, the commerce departments would no longer review and approve the establishment and changes of foreign-invested enterprises. Foreign investors only need to fulfill their information reporting obligations in accordance with relevant requirements of the Foreign Investment Law and its implementing regulations and the Foreign Investment Information Reporting Measures. Unless domestic enterprises are involved in industries on the negative list for foreign investment, the commerce departments would no longer review or approve foreign investors' mergers and acquisitions of Chinese enterprises. Foreign investors or foreign-invested enterprises only need to fulfill their information reporting obligations in accordance with the law.

Regarding the conflict between the original document and the Foreign Investment Law, the Ministry of Commerce has responded that "according to the Foreign Investment Law and its implementing regulations, the Ministry of Commerce would no longer review or approve the establishment and change of foreign-invested enterprises... The provisions of the Measures for the Administration of Strategic Investment of Foreign Investors in Listed Companies (2015 Amendment) that are inconsistent with the Foreign Investment Law and its implementing regulations would no longer be implemented."

After the revised document takes effect, foreign investors no longer need to get approval from the commerce departments for their strategic investment in A-share listed companies. Foreign investors and listed companies should fulfill their information reporting obligations in accordance with the Foreign Investment Law and the Foreign Investment Information Reporting Measures. 

[To be Continued]