Issue 83

Shanghai Weekly Bulletin

No.3, February 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. 2025 Action Plan for Stabilizing Foreign Investment Released 

【Keywords: Stabilizing foreign investment】

On February 17, 2025, the General Office of the State Council forwarded the 2025 Action Plan for Stabilizing Foreign Investment from the Ministry of Commerce and the National Development and Reform Commission, which outline twenty measures in four areas: expanding self-initiated opening-up in an orderly manner, improving the level of investment promotion, strengthening the functions of opening-up platforms, and redoubling efforts to enhance services.

Source: International Services Shanghai

2. Five Departments Adjust Relevant Catalogs of Tax Policies for Imports of Major Technical Equipment

【Keywords: Major technical equipment, Import tax】

Recently, the Ministry of Industry and Information Technology and four other departments released the Catalog of Major Technical Equipment and Products Encouraged by the State for Development (2025 Edition), the Catalog of Imported Key Components and Raw Materials for Major Technical Equipment and Products (2025 Edition), and the Catalog of Major Technical Equipment and Products Not Eligible for Import Duty Exemption (2025 Edition), which will be implemented from March 1, 2025.

Source: Ministry of Industry and Information Technology

3. Customs Issues Measures for Supervision of Inbound and Outbound Luggage and Articles 

【Keywords: Inbound and outbound, Luggage and articles】

Recently, the General Administration of Customs released the Measures of the Customs of the People's Republic of China on the Supervision of Inbound and Outbound Luggage and Articles, which standardizes customs supervision of inbound and outbound luggage and articles, covering procedures such as declaration, inspection, and disposal, and stipulates that people entering and leaving the country should declare truthfully and the customs shall inspect according to the law. The Measures shall come into effect on April 1, 2025.

Source: Customs Release

4. The Cyberspace Administration of China Releases the Administrative Measures for Compliance Audit of Personal Information Protection

【Keywords: Personal information, Compliance audit】

Recently, the Cyberspace Administration of China released the Administrative Measures for Compliance Audit of Personal Information Protection and attached the Guidelines for Compliance Audit of Personal Information Protection, which explicitly stipulate that personal information processors who handle the personal information of more than 10 million individuals should conduct a compliance audit of personal information protection at least once every two years.

Source: Website of the Cyberspace Administration of China

【Shanghai】

1. Interim Measures for the Administration of Trading Venues to Take Effect on March 1, 2025

【Keywords: Trading venues】

Recently, the Shanghai Municipal People's Government issued the Shanghai Interim Measures for the Administration of Trading Venues, stipulating matters such as the establishment, change and termination of trading venues, operational norms as well as supervision and management. The Measures shall come into force on March 1, 2025.

Source:Shanghai Municipal People's Government

One Week in Shanghai

【Latest News】 

1. The 2025 Briefing on Business Situation in Shanghai Held 

【Keywords: Business situation briefing】

On February 19, the "2025 Briefing on Business Situation in Shanghai" hosted by the Shanghai Municipal Commission of Commerce was successfully held. Officials from the General Consulates of 53 countries in Shanghai, representatives from 31 overseas economic and trade investment promotion agencies in Shanghai, and representatives from 238 foreign-funded enterprises in Shanghai, a total of over 500 guests, attended the meeting and participated in on-site Q&A interactions.

Source:Shanghai Commerce

2. "Two Airports, Three Terminals" Travel Service Guide for Shanghai Arrival Released 

【Keywords: Travel service guide】

To further enhance the travel experience for international tourists arriving in Shanghai, Shanghai "Mobility as a Service" (MaaS) platform, Suishenxing, has produced a series of travel service guide videos for Shanghai Hongqiao International Airport Terminal 1 and Shanghai Pudong International Airport Terminals 1 and 2 to facilitate international passengers to quickly take various modes of transportation such as subway, city airport line, maglev, airport bus, and taxi according to their needs after arriving at the airports, making travel more convenient.

Source: Shanghai Transportation

【Culture & Art】

1. Shanghai Oriental Art Center 2024/25 Spring-Summer Performance Season Unveiled

【Keywords: Shanghai Oriental Art Center】

Recently, the Shanghai Oriental Art Center 2024/25 Spring-Summer Performance Season was officially unveiled. With the theme "Splendid Landscape, Living Melodies", this season will bring 48 productions in 69 splendid performances. During the performance season, maestro conductor Zubin Mehta, Hungarian "national treasure" conductor Ádám Fischer, the St. Petersburg Philharmonic Orchestra and others will present wonderful performances.

Source:Shanghai Tourism

2. "Secret Love in Peach Blossom Land" Performance Season to Open Soon

【Keywords: Secret Love in Peach Blossom Land】

The 2025 Lai Shengchuan Shang Theater "Secret Love in Peach Blossom Land" performance season will kick off soon. This performance season includes the Classic Edition, Commemorative Edition, Exclusive Edition, and the Grand Performance. The performances will last from February 28 to March 16.

Source:Shang Theatre

【Corporate Activities】

1.One of the Three Major R&D Centers of German Döhler Group Broke Ground in Minhang

【Keywords: Döhler Group】

Recently, Döhler Group, a leading global food and beverage company, held a groundbreaking ceremony for its R&D center in XinZhuang Industrial Park. With a total investment of 4.2 million euros, the R&D center will create dozens of new high-end R&D positions upon completion and become one of the three major R&D centers of the Döhler Group worldwide, focusing on serving the Chinese and Asia-Pacific markets, and further promoting technological innovation and sustainable development in the food and beverage industry.

Source:Minhang Today

2. Panasonic Group's New Semiconductor Packaging Material Factory to Start Construction in July 

【Keywords: Panasonic】

Recently, Panasonic Group announced that its new semiconductor packaging material factory, with an investment of RMB 120 million, will break ground in Fengxian in July this year. The new Panasonic factory is expected to cover an area of approximately 10,000 square meters. The implementation of the project will effectively strengthen the regional semiconductor material supply chain and attract more upstream and downstream supporting companies to gather.

Source: Shanghai Fengxian

Q&A

Q1:Relevant officials from the National Development and Reform Commission (NDRC) answered questions from reporters at the State Council policy briefing held by the State Council Information Office on “Introducing Relevant Information on the Expansion of High-standard Opening-up and Doing a Good Job in Stabilizing Foreign Investment in 2025” — Last year, the NDRC released the 2024 edition of the Special Administrative Measures for Foreign Investment Access. What measures will be taken in 2025 to expand high-standard opening-up and attract foreign investment with greater efforts?

A1: In 2025, the NDRC will take effective measures to promote the construction of a new system for a higher-standard open economy and continue to support foreign-funded enterprises to invest in China and deepen their roots in China. Specifically, the NDRC will mainly carry out the following four aspects of work:

First, systematically plan and steadily expand institutional opening-up. We will work with relevant departments to proactively align with international high-standard economic and trade rules in seven areas: property rights protection, industrial subsidies, environmental standards, labour protection, government procurement, e-commerce, and finance, to achieve interoperability of rules, regulations, management, and standards; and orderly promote the expansion of autonomous opening-up in four markets: commodity markets, service markets, capital markets, and labour markets, and expand unilateral opening-up to the least developed countries. In addition, we will promote the deepening of reform of the foreign investment promotion system and mechanism, and improve foreign investment management and promotion work in an all-round and systematic way.

Secondly, formulate and introduce specific support policies and measures to stabilize foreign investment. We adhere to a problem-oriented approach and plan to work with relevant parties to revise and expand the Catalogue of Industries Encouraged for Foreign Investment, study and formulate policies to encourage reinvestment within China by foreign-funded enterprises. These key tasks are also written into the 2025 Action Plan for Stabilizing Foreign Investment released today.

Thirdly, promote development zones to better play their role as platforms for attracting investment. Development zones have always been at the forefront of expanding opening-up and are important platforms for investment promotion. We will combine the ongoing revision of the China Development Zone Review Announcement Catalogue (2018 Edition) and adhere to manufacturing and productive service industries as the main focus, improve land management of development zones, and guide the high-quality development of development zones with indicators such as per-mu benefits, clustering and intensification, incremental growth, pollution reduction, and carbon reduction, so as to better play the important role of development zones in attracting foreign investment and smoothing domestic and international dual circulation.

Lastly, strengthen foreign investment service and guarantee. We are working with relevant departments to compile the 100 Questions and Answers on Foreign Investment in China, hoping to help overseas investors better understand China’s foreign investment environment and better serve foreign-funded enterprises in their investment, production, operation, and foreign personnel working and living in China. We will provide good services for the implementation of landmark and major foreign investment projects. Currently, the first eight batches of 66 landmark major foreign investment projects have completed about US$ 94 billion investment, of which 33 projects have been fully or partially put into production, achieving good social and economic benefits. This year, we will continue to strengthen project element guarantee, promote the accelerated implementation of the first eight batches of projects, and release the ninth batch of projects in due course. We will continue to carry out special actions to serve foreign-funded enterprises, conduct "one-on-one" visits to foreign-funded enterprises, and promptly understand and coordinate to solve the difficulties and problems encountered by enterprises.

Source: State Council Information Office

Expert Perspective

A New Guide to Data Compliance of Multinational Banks and Financial Institutions: Interpretation of the Regulations on Network Data Security Management

By Zhou Liang, Zhou Jianing (Beijing Dacheng Law Firm)

[Continued from the Last Issue]

III. Practical Recommendations for Multinational Banking and Financial Institutions

Overall, from the perspective of personal data protection, we believe that the promulgation of the Regulations on the Administration of Network Data Security (the "Regulations") has established more detailed compliance standards for overseas banking and financial institutions engaged in cross-border business.

Firstly, the Regulations further refine the obligation to inform the personal information processing rules and the way to obtain consent, and enhance the protection of personal information of minors. Therefore, for overseas financial institutions, we suggest updating personal information processing rules in accordance with the Regulations, focusing on the revisions regarding the notification form of personal information processing rules, the methods of obtaining consent, and the information processing rules for minors, so as to fulfil the obligation to inform in a simple and straightforward manner and to legally obtain personal consent.

Secondly, the Regulations clarify the security requirements and contingency measures for network products or services, which play an important role in protecting citizens' data security, social order, and even national security. As an important part of financial security, overseas financial institutions need to keep pace with the Regulations, conduct compliance checks on existing network products and services, formulate corresponding emergency contingency measures, and conduct drills in advance when necessary to ensure data security.

Lastly, the Regulations require overseas network data processors to set up specialized agencies or designate representatives within China and to fulfil information reporting obligations to the municipal-level cyberspace administration departments where they are located. Currently, although there is still a lack of clear guidelines for overseas entities to establish specialized agencies within China, and there are difficulties in practical operation, we expect that the cyberspace administration departments will issue detailed regulations to pave the way for subsequent supervision of overseas entities. We suggest that all overseas institutions pay attention to the latest legal developments and formulate countermeasures in due course.