Issue 77

Shanghai Weekly Bulletin

No.1, January 2025

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 Tariff Adjustment Plan for 2025

【Keyword: Tariff】

The Customs Tariff Commission of the State Council recently released the Tariff Adjustment Plan for 2025, announcing changes in the import tariff rates and items on certain goods starting from January 1, 2025.

Source:  Website of the Chinese Government

2. NFRA Issues Compliance Regulation for Financial Institutions

【Keyword: Financial Institutions】

The National Financial Regulatory Administration (NFRA) recently released the Compliance Regulation for Financial Institutions, which will take effect on March 1, 2025. The document clarifies the structure of compliance regulators and their duties, compliance regulation assurance, supervision and administration, and legal responsibilities. 

Source:NFRA

3. MOFCOM Releases Three Catalogs of Goods Subject to License Administration for 2025

【Keywords: Catalog of Goods Subject to License Administration】

The Ministry of Commerce (MOFCOM) and the General Administration of Customs (GAC) released on December 31, 2024 the Catalog of Dual-use Items and Technologies Subject to Import and Export License Administration (2025), the Catalog of Goods Subject to Import License Administration (2025), and the Catalog of Goods Subject to Export License Administration (2025). All the documents took effect on January 1, 2025. 

Source: MOFCOM Catalog of Dual-use Items and Technologies Subject to Import and Export License Administration (2025), Catalog of Goods Subject to Import License Administration (2025), Catalog of Goods Subject to Export License Administration (2025)

4. SPC Releases Typical Cases on Protecting the Rights and Interests of Foreign Investors

【Keyword: Foreign Investors】

The Supreme People's Court (SPC) recently released the first batch of typical cases on protecting the rights and interests of foreign investors. The five cases involve disputes over liability for damage to company interests, shareholders' right to know, company dissolution, return of company license, and liability on connected transactions.

Source: SPC

5. GAC Unveils New Measures to Better Serve YRD Region’s Integrated Development

【Keyword: Integrated Development of the Yangtze River Delta】

The General Administration of Customs (GAC) recently announced 16 measures to support the integrated development of the Yangtze River Delta (YRD) region. These measures are designed to foster new quality productive forces, push for lower logistics costs and higher efficiency, create high-standard business environment at trade ports, protect national security, and improve smart governance.

Source: GAC

6. State Council Approves Interim Adjustments to Administrative Regulations at Lin-gang Special Area

【Keyword: Lin-gang Special Area】

China's State Council released on December 30, 2024 the Reply on Approving Interim Adjustments to Certain Administrative Regulations at the Lingang Special Area of China (Shanghai) Pilot Free Trade Zone. The adjustments, effective from January 1, 2025 to December 31, 2027, are made to the relevant provisions of the Regulations of the People's Republic of China on International Marine Transport and the Regulations on the Administration of Domestic Waterway Transport.

Source:Ministry of Commerce

【Shanghai】

1. Shanghai Adopts Revised Regulations on the Development of International Shipping Center 

【Keyword: International Shipping Center】

The Standing Committee of Shanghai Municipal People's Congress voted to adopt the revised Regulations on Promoting the Development of International Shipping Center at its 18th session. The document aims to accelerate the digital, smart and green transformation of the shipping industry, increase the supply of high-end shipping services, and provide strong legal support for Shanghai to become an international leading shipping center. The document will come into effect on February 1, 2025.

Source: Shanghai Municipal People's Congress

2. Shanghai Adopts China's First Local Policy Governing Application of Blockchain Technologies in Electronic Documents 

【Keywords: Blockchain; Electronic Documents】

The Standing Committee of Shanghai Municipal People's Congress voted to adopt the Shanghai Provisions on Promoting the Application of Blockchain Technologies in Electronic Documents in Pudong New Area on December 31, 2024 at its 18th session. The document governs the application of blockchain technologies in the issuance, transfer, change, conversion, storage and other applications of electronic documents and their related management and services within the jurisdiction of Pudong New Area. The document took effect on January 1, 2025.

Source:  Shanghai Municipal People's Congress

3.Shanghai Unveils Measures to Strengthen Capacity of Aviation Logistics Hub

【Keywords: Aviation; Logistics Hub】

On December 27, 2024, the General Office of Shanghai Municipal People's Government issued the Several Measures on Further Improving the Capacity of Shanghai's Aviation Logistics Hub. The document proposes key measures in nine aspects, including fostering diversified business entities, expanding incremental market business, improving smart and green logistics, ensuring the supply of aviation resources, and improving the hub operating environment.

Source:Shanghai Municipal People's Government

One Week in Shanghai 

【Latest News】 

1. Chinese and Foreign Tourists Gather in Shanghai for the "First Tour of the New Year"

【Keyword: Shanghai Tour】

A number of "First Tour of the New Year" activities took place across Shanghai on December 31, 2024 and January 1, 2025. With auspicious bells, jubilant performances, dreamy drone shows, dazzling light shows, and vibrant climbing, the activities kicked off the first wave of cultural and tourism consumption in 2025.

Source:Shanghai Release

2. Shanghai International Commercial Court Inaugurated

【Keyword: Shanghai International Commercial Court】

The Shanghai International Commercial Court, which is housed within the Shanghai First Intermediate People's Court, was inaugurated on December 30, 2024 . The Court will exercise centralized jurisdiction over foreign-related commercial cases of first and second instances and arbitration review cases that were previously under the jurisdiction of the the Shanghai First Intermediate People's Court and the Shanghai Second Intermediate People's Court. 

Source:International Services Shanghai 

3. Shanghai Opens New ODI Consulting Service Outlet in Hongqiao

【Keyword: Outbound Direct Investment Approval; Consulting Service】

Shanghai Municipal Development and Reform Commission has worked with the Administration of Hongqiao International Central Business District (CBD) to open a new outbound direct investment (ODI) consulting service outlet in the CBD. With the completion of a "4+1" layout, i.e. four specialized ODI consulting service windows and one outlet, companies will be able to get ODI consulting services nearby. 

Source: Shanghai Municipal Development and Reform Commission

【Culture & Art】

1. Exhibition of Jade Collections from Wuhan Museum Opens at Shanghai History Museum

【Keyword: Exhibition of Jade Collections from Wuhan Museum】

A special exhibition of jade collections from Wuhan Museum opened on December 27, 2024 at the Shanghai History Museum. About 110 valuable jade items are on display. The exhibition will last until March 2, 2025.

Source:Shanghai History Museum

2. Art Exhibition Commemorating the 180th Anniversary of Wu Changshuo’s Birth Opens

【Keywords: Bright Moon over the Sea; Wu Changshuo】

In commemoration of the 180th anniversary of the birth of Wu Changshuo, a leader of Shanghai-style culture, China Art Museum launched an art exhibition titled A Leader of Shanghai-style Culture - Art Exhibition in Commemoration of the 180th Anniversary of the Birth of Wu Changshuo on December 31, 2024, which will last until March 31, 2025. With 180 fine works and an exhibition area of 1,500 square meters, the exhibition brings visitors back to the glorious 15 years from 1912 to 1927 when Wu Changshuo was residing in Shanghai. It has been the largest exhibition of Wu's artworks in recent years.

Source:China Art Museum

3.Shanghai and Yunnan Jointly Launch Activity to Collect Original Top 100 Couplets

【Keyword: Couplets】

Pudong in Shanghai and Jianchuan in Yunnan have jointly launched an activity to collect original top 100 couplets. People from all walks of life who are interested in Chinese couplet culture are invited to make the submissions until January 10, 2025.

Source: Pudong Release

【Corporate Activities】

1.Valeo Makes New Progress in Construction of Intelligent Driving R&D Center in Shanghai 

【Keyword: Valeo】

Valeo has made important progress in the construction of the "Comfort and Driving Assistance System Manufacturing and R&D Base" in Jiading, Shanghai. The main project is expected to be completed by the middle of 2025. The project covers a total land area of about 30,000 square meters, with a floor area of 58,596 square meters. It is mainly engaged in the R&D of cutting-edge technologies such as intelligent driving cameras, lidar, domain controllers, and chip binding. The project involves a total investment of 2.9 billion yuan.

Source:Jiading, Shanghai 

2. OSM Thome Debuts New China Office in Hongkou, Shanghai

【Keyword: OSM Thome】

OSM Thome, a world-leading ship management company, has officially opened its China office in North Bund, Hongkou. By leveraging its advantages and expanding its cooperation with Chinese shipowners and shipyards, OSM Thome aims to provide more professional and diversified ship management services. 

Source: Invest Shanghai

3. Tesla's Shanghai Megapack Energy Storage Plant to Start Mass Production Early This Year

【Keyword: Tesla】

Tesla announced that its Shanghai Megapack energy storage plant has passed the completion inspection on December 27, 2024. The plant has a planned output of 10,000 units of commercial Megapack energy storage batteries annually and a designed storage capacity of nearly 40 gigawatt-hours. 

Source: Pudong Release

Q&A

Q1: Officials with the Ministry of Transport (MOT) answered questions at a press conference on "the achievements of China's high-quality economic development" held by the State Council Information Office, and introduced the role of transportation in serving high-quality economic development. Recently Shanghai Port became the first in the world to process 50 million TEUs containers annually. Could you give us a detailed introduction about port operations in China, and your work priorities in the next stage?

A1: Port development is an important part of waterway transport development. This year, Shanghai Port achieved a historic breakthrough in container throughput of 50 million TEUs, which is the first time in the world. The breakthrough suggests that China's port development has reached a new stage. Overall, China has been at the forefront of the world in recent years in terms of port development. Our port operations are highlighted by the following characteristics:

First, our port operation efficiency, service level and service capacity are living up to first-class world standards. Take the port operation efficiency as an example. The average time for international container ships to stay in port is 1.42 days and the average time to stay in port is 0.87 day. From January to November 2024, ports in China achieved a total cargo throughput of 16.04 billion tons, and full-year cargo throughput is expected to reach 17.5 billion tons, an increase of 3.4% from 2023. Port development is mainly related to domestic and foreign trade, especially foreign trade. The substantial increase in port throughput points to dynamic momentum in China's foreign trade. From January to November, China's container throughput reached 300 million TEUs, a year-on-year increase of 7.3%.

Second, investment in port construction remained high. From January to November, port investment reached 122.3 billion yuan, up 6.9% year-on-year. A large number of major projects, such as a container terminal in the Xiaoyangshan North Operation Area of Shanghai Port, have been accelerated, and the Taicang Port Area of Suzhou Port has built the largest commercial vehicle roll-on/roll-off terminal on the Yangtze River. Chongqing and Anhui have also made a lot of investment and construction in inland river terminals.

Third, as a land-water transfer hub, the port has further strengthened its hub function. China has always maintained a global lead in maritime connectivity, thanks to the improvement of port service capabilities and port networks. In the meantime, we are accelerating the development of port-rail-water transport. From January to November, the container rail-water transport volume reached 10.63 million TEUs, an increase of about 15% year-on-year. Rail-water transport represents a port's operating efficiency and overall service capabilities.

Fourth, the green and smart transformation of ports has been further accelerated. More than 60% of container trucks in 11 international hub ports are using clean energy, and the green transportation rate of bulk cargo such as coal and iron ore in major coastal ports exceeds 85%, which has played a significant role in purifying air quality at ports and surrounding cities. In addition, Shanghai Port, Dalian Port and Ningbo-Zhoushan Port are improving the refueling capacity of green fuels such as methanol and biofuel. China has built 52 fully automated terminals, which are among the best in the world in terms of automation, operating efficiency and tech application.

Next, we will stick to the task of building world-class terminals, support ports to play their hub functions, carry out green and smart upgrades, and drive their high-quality development.

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]

II. Other Reflections about the Revision

(1) Relations Between the Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies and the Foreign Investment Law 

The Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies are drafted in accordance with the Foreign Investment Law and the Securities Law of the People's Republic of China. The Measures are part of department regulations, while the Foreign Investment Law is a law. According to Article 4 of the Foreign Investment Law, the state applies the administrative system of pre-establishment national treatment plus negative list to foreign investment. "Pre-establishment national treatment" means the treatment accorded to foreign investors and their investments no less favorable to that accorded to domestic investors and their investments at the stage of investment access. So, are there any conflicts with the principle of "pre-establishment national treatment" stated in the Foreign Investment Law, such as the eligibility conditions for foreign investors, special provisions for overseas equity as share swap consideration, and minimum investment equity ratio requirements, which are still retained in the amended regulation?

I believes that there is no conflict. Article 41 of the Foreign Investment Law stipulates: "For the management of foreign investors' investment in banking, securities, insurance and other financial industries in China, or in securities markets, foreign exchange markets and other financial markets, if the state has other provisions, they shall be observed." According to the provisions, foreign investors must comply with China's special regulations when investing in the securities market, which is also determined by the particularity of financial markets. Therefore, strategic investment in A-share listed companies can be subject to special provisions in the Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies.