Issue 90

Shanghai Weekly Bulletin

No.3, April 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. State Taxation Administration Promotes the "Refund-upon-Purchase" Service Nationwide

【Keywords: Departure tax refund, Refund upon purchase】

On April 4, the State Taxation Administration (STA) issued the Announcement on Promoting "Refund-upon-Purchase" Service under Departure Tax Refund Policy for Overseas Tourists. In regions where the departure tax refund policy has been implemented, when an overseas tourist purchases tax refundable items from a store subject to "refund upon purchase", he/she may, after signing an agreement and granting pre-authorization of the credit card, claim on-site a fund in Renminbi equivalent to the tax rebate amount in that store. This announcement has taken effect from the date of issuance.

Source: STA

 

2.Special Action Plan to Promote Health-related Consumption Released

【Keywords: Health-related consumption】

Recently, the Ministry of Commerce, the National Health Commission and ten other departments issued the Special Action Plan to Promote Health-related Consumption. The document puts forward key tasks in ten aspects, including boosting healthy diet consumption, optimizing market supply of special foods, enriching fitness and sports consumption scenarios, and vigorously developing the sports tourism industry.

Source: Ministry of Commerce

 

【Shanghai】

1.2025 Shanghai Action Plan for New Town Development Released

【Keywords: Shanghai, New city development】

Recently, the 2025 Shanghai Action Plan for New Town Development was released, which proposes eight special actions in four aspects, namely, industry-driven development, urban functions, factor support, and mechanism innovation.

Source: Shanghai Municipal Development & Reform Commission

 

2.The Three-Year Action Plan for the Transformation and Upgrading of Bulk Commodity Trade Released

【Keywords: Bulk commodities】

Recently, the Shanghai Municipal Commission of Commerce and four other departments jointly issued the Three-Year Action Plan for the Transformation and Upgrading of Bulk Commodities Trade in Shanghai (2025-27). The document puts forth 24 measures in seven aspects, including cultivating and gathering diversified trading entities, accelerating category expansion, and deepening the connection between futures and spot markets for bulk commodities.

Source: Shanghai Municipal Commission of Commerce

 

One Week in Shanghai

【Latest News】

1.The 2025 World Artificial Intelligence Conference and the High-level Meeting on Global AI Governance Scheduled

【Keywords: Artificial Intelligence Conference】

Shanghai is set to host the 2025 World Artificial Intelligence Conference and the High-level Meeting on Global AI Governance at the Shanghai World Expo Center and the World Expo Exhibition and Convention Center from July 26 to 28. The theme of this conference is "Global Solidarity in the Al Era".

Source:World Artificial Intelligence Conference

 

2."Renewing Shanghai" Short Video Series Launched Online on April 8

【Keywords: Shanghai short videos】

The "Renewing Shanghai" short video series made its debut online across all platforms on April 8. It offers viewers a panoramic look at how the city is blending cultural heritages with technological innovation and green development to drive urban renewal forwards, showcasing the new look of this international metropolis to audiences both at home and abroad.

Source: International Services Shanghai

 

3.The Bund Service Center for International Professionals Opens

【Keywords: International professionals, Services】

The Bund Service Center for International Professionals has officially opened recently. International professionals can apply for 36 government services through one platform, covering customs clearance facilitation, settlement services, enterprise services, public welfare, employment and start-up affairs, etc. They can enjoy various supporting services in one go, such as housing, medical care, and culture related services. Furthermore, the Bund Riverside International Talent Apartments is just next door with convenient check-in services. International professionals can also experience innovation and start-up services in one stop, including venture capital roadshows, industry summits, expert lectures, and incubation matchmaking.

Source: International Services Shanghai

 

【Competitive Event】

 

1. Volvo China Open Back to Shanghai

【Keywords: Volvo China Open】

The 2025 Volvo China Open will tee off at Shanghai's Enhance Anting Golf Club from April 17 to 20. During the tournament, golf stars will visit the public activity area to interact with fans and exchange golf learning experiences. A flash mob band will also bring a high-quality music feast to further enrich the cultural connotation of the event and activity experience.

Source: International Services Shanghai

 

【Culture & Art】

1.2025 Shanghai International Flower Show Opening Soon

【Keywords: Shanghai International Flower Show】

The 2025 Shanghai International Flower Show, with the theme of "Blooming Xintiandi", will be held at two main venues, Shanghai Botanical Garden and Xintiandi in Huangpu District. The three major sections, namely, "World Garden", "Theme Garden" and "Dream Garden", closely aligning with the concepts of "Harmony between Humans and Nature" and "Garden City", will showcase 27 diverse garden-style attractions. The flower show will run from April 18 to May 11.

Source: International Services Shanghai

 

2.Shanghai Jing'an "World Coffee Culture Festival" Once Again Sparks Coffee Carnival

【Keywords: Coffee culture】

From April 16 to 20, the main venue activities of the 2025 Shanghai Jing'an World Coffee Culture Festival will be held at Jing'an Temple Square. Visitors can experience the creative co-branded initiative "Coffee + Traditional Chinese Medicine", "Coffee Photo Studio 2.0", a special music program and other interesting activities on site.

Source: Shanghai Jing'an

 

3."I.M. Pei: LIFE is ARCHITECTURE" Starting Soon

【Keywords: I.M. Pei】

From April 26 to July 27, the exhibition "I.M. Pei: LIFE is ARCHITECTURE" will be on display at the Power Station of Art in Shanghai. This exhibition marks the first comprehensive retrospective of the Chinese-American architect I.M. Pei in the Chinese mainland. It will present over 400 exhibits in six themes, offering an up-close exploration of Pei's life and work.

Source: International Services Shanghai

 

【Corporate Activities】 

1.Phase II Reconstruction of a ZF Major Project Starts

【Keywords: ZF】

Recently, the Phase II reconstruction for a major project of ZF Friedrichshafen AG ("ZF") has started. This is a laboratory reconstruction for a new ZF headquarters. It is expected to be delivered and put into use by the end of this year.

Source:Shanghai Jiading

 

2.Schneider Electric's Shanghai Kangqiao Factory Will Upgrade Multiple Automated Production Lines by the End of the Year

【Keywords: Schneider】

Schneider Electric (China) Co Ltd Shanghai Pudong Branch, the world's largest air circuit breaker production base, will upgrade multiple automated production lines by the end of 2025 to become a global model for intelligent circuit breaker manufacturing.

Source:Pudong Release

 

3.Magna Officially Opens New Headquarters Building in China

【Keywords: Magna】

Recently, Magna International held a grand opening ceremony for the new China headquarters building in Changning District, Shanghai, and a celebration of the 20th anniversary of the establishment of its China headquarters. The new building has an office area of over 10,000 square meters and will accommodate more than 700 employees from various business units and functional departments of Magna China.

Source: Magna International

 

4.Lin-gang Special Area Administration Holds Signing Ceremonies with Stellantis NV and Venchi

【Keywords: Stellantis, Venchi】

Recently, the Lin-gang Special Area Administration signed cooperation agreements respectively with a leading global automaker Stellantis NV and the internationally renowned chocolate brand Venchi.

Source:Shanghai Lingang

 

Q&A

Q: The head of the Shanghai Municipal Commission of Commerce answered reporters' questions at a press conference held by the Information Office of Shanghai Municipal People's Government to introduce the Several Measures of Shanghai to Promote the Development and Growth of Specialized, Sophisticated, Distinctive, and Innovative Small and Medium-sized Enterprises — Under the current situation, what supporting policies are there for specialized, sophisticated, distinctive, and innovative small and medium-sized enterprises to go global?

A: In recent years, private enterprises, particularly specialized, sophisticated, distinctive, and innovative (SSDI) small and medium-sized enterprises (SMEs), have become a main and vital force in expanding overseas markets. Against the backdrop of economic globalization, going global has become a crucial strategic choice for many private enterprises, including SSDI SMEs, to expand their markets and enhance their core competitiveness. In 2024, the import and export value of Shanghai's private enterprises reached RMB 1.44 trillion, accounting for one-third of the city's total foreign trade import and export value and driving overall import and export growth by 3.2 percentage points. The recorded amount of non-financial outbound investment by Shanghai's private enterprises accounted for 90% of the city's total outbound investment.

To encourage and support SSDI private enterprises in actively responding to fluctuations and challenges in the international market, seizing the opportunities presented by Shanghai's development as an international trade center, accelerating growth and expansion, and effectively coordinating both domestic and international markets, Shanghai has introduced relevant supporting policies.

First, establish a coordination mechanism for serving enterprises going global. Led by the Municipal Commission of Commerce, more than 20 municipal departments have formed a coordination mechanism to serve key enterprises going global. We have compiled a "service package" of policies for enterprises venturing overseas, a guidance manual for key industries going global, and a Guidelines for Compliance in Overseas Investment Cooperation, etc. We have also established a "one enterprise, one policy" and "one enterprise, one dedicated officer" service mechanism to enhance the precision of services for enterprises by optimizing overseas investment filing procedures, strengthening the supply of professional services, and coordinating the resolution of issues and demands, etc.

Second, strengthen the internationalized support of professional services. In response to the cross-border professional services that SSDI enterprises need, we have formulated and issued the Several Measures on Improving Comprehensive Service Capabilities and Assisting Enterprises' High-Level Going Global and released supporting policies to encourage professional service agencies to improve their cross-border service capabilities to help and accompany enterprises in their global outreach. The Shanghai Council for the Promotion of International Trade has also released the first batch of more than 100 professional agencies in Shanghai that serve enterprises going global, providing more internationalized and professional service support for private enterprises to carry out cross-border investment.

Third, create a one-stop comprehensive service platform for enterprises going global. The Municipal Commission of Commerce will take the lead in building a unified "Shanghai Enterprises Going Global Comprehensive Service Platform" with the three major functions of "consultation, affairs handling, and services", to provide authoritative, comprehensive and convenient public and professional services for enterprises, including SSDI enterprises, to go global.

Fourth, hold multi-dimensional trainings and matchmaking events. Focusing on the hot topics of concern for SSDI private enterprises going global, the Municipal Commission of Commerce, together with relevant departments, held more than 40 various "going global" policy briefings, matchmaking events and activities last year. For example, we co-organized a "Roundtable Meeting for Escorting Private Enterprises' Going Global" with the Shanghai Federation of Industry and Commerce, and held an "Open Day for Overseas Investment and Cooperation Services" and the "Special Training Class for Enhancing the Capabilities of Enterprises Going Global".

Fifth, support SSDI private enterprises in effectively utilizing exhibition resources. We encourage and support more SSDI private enterprises in the city to participate in internationally renowned exhibitions with industry influence. The Municipal Commission of Commerce releases an annual list of recommended overseas exhibitions for Shanghai enterprises to explore international markets. This year, 200 overseas exhibitions have been recommended. Enterprises participating in exhibitions on the recommended list can receive corresponding support. Enterprises participating in overseas exhibitions not on the recommended list may also receive international market development funding support for SMEs. Moving forward, the Municipal Commission of Commerce will also work with relevant municipal departments to further improve services for SSDI enterprises, assisting them in achieving steady and long-term success in their overseas ventures.

Source:Shanghai Release

 

Expert Perspective

New Opportunities for Foreign Investment: The First Batch of 13 Foreign-funded Enterprises (Including Wholly Foreign-owned Enterprises) Received Approval for the Pilot Operation of Value-added Telecommunications Services

By Li Rui, Zhong Junpeng, Xie Xueqian (Zhong Lun Law Firm)

[Continued from the Previous Issue]

II. Review of Foreign Investment Access Policies for Value-added Telecommunications Businesses

·Historical evolution: Limited opening up under the premise of WTO reservation

(1) Limited opening up under WTO commitments

The telecommunications businesses that China opens to the outside world are limited to the scope of telecommunications businesses that China committed to opening upon its accession to the WTO. In 2001 when China joined the WTO, it only committed to opening certain value-added telecommunications businesses, such as email, voice mail, online information and data retrieval, electronic data exchange, online information and/or data processing (including transaction processing). According to the foreign investment access policies at that time, the foreign equity ratio in open-category value-added telecommunications enterprises should not exceed 50%, and in principle, foreign investment is not permitted in value-added telecommunications businesses beyond the open category.

(2) Gradual opening up led by free trade zones

Since 2014, to further encourage foreign investment and introduce outstanding industrial investors to promote industrial development, China has gradually adjusted and relaxed foreign equity ratio restrictions on several categories of value-added telecommunications services, taking the Shanghai Pilot Free Trade Zone and other free trade zones as a pilot. These relaxed restrictions were then extended nationwide after sufficient experience was gained. At present, foreign equity restrictions on four categories – e-commerce, domestic multi-party communication, storage and forwarding, and call centers – have been completely lifted (allowing 100% foreign ownership) nationwide. Meanwhile, free trade zones like Hainan and economic center cities like Shanghai continue to launch pilots for foreign investment access in some new value-added telecommunications categories. Outside of the pilot areas, the general restriction on foreign investment access still applies nationwide to most value-added telecommunications businesses permitted for foreign investment, meaning the foreign equity ratio shall not exceed 50%.

In recent years, the country has also opened up some value-added telecommunications categories for which its WTO commitments were reserved, to eligible investors from Hong Kong and Macao Special Administrative Regions (SARs). For example, according to the Closer Economic Partnership Arrangement (CEPA Agreement) signed separately between the Chinese mainland and the governments of Hong Kong and Macao SARs, eligible Hong Kong and Macao SARs service providers are allowed to set up joint ventures or wholly-owned enterprises in the Chinese mainland.

[To be Continued]