Laws and Regulations

National

1.Catalogue of Encouraged Industries for Foreign Investment (2025 Edition) Released

[Keywords: Foreign investment]

Recently, the National Development and Reform Commission and the Ministry of Commerce jointly issued the Catalogue of Encouraged Industries for Foreign Investment (2025 Edition). The document contains a total of 1,679 items and consists of two parts: the National Catalogue of Encouraged Industries for Foreign Investment and the Catalogue of Priority Industries for Foreign Investment in Central and Western Regions. It will take effect on February 1, 2026.

 

2.Three Authorities Jointly Issue the Rules on Pricing Practices of Internet Platforms

[Keywords: Internet platforms, Pricing practices]

Recently, the National Development and Reform Commission, the State Administration for Market Regulation (SAMR), and the Cyberspace Administration of China issued the Rules on Pricing Practices of Internet Platforms. The document aims to regulate price competition, protect the independent pricing rights of operators, and safeguard the legitimate rights and interests of consumers. It will take effect on April 10, 2026, and will remain in force for five years.

 

3.SAMR Releases Newly Revised Provisions on the Prohibition of Monopoly Agreements

[Keywords: Monopoly agreements]

Recently, the SAMR released the amended Provisions on the Prohibition of Monopoly Agreements. The document clarifies the market share thresholds and other conditions required for vertical monopoly agreements to be exempt from prohibition, along with relevant review procedures and legal consequences.

 

Shanghai

1.Shanghai Supports the Development of G60 Science and Technology Innovation Corridor in the Yangtze River Delta as a Source of Innovation

[Keywords: Yangtze River Delta, G60 Science and Technology Innovation Corridor]

Recently, the General Office of the Shanghai Municipal People’s Government issued the Several Measures on Supporting the Development of the G60 Science and Technology Innovation Corridor in the Yangtze River Delta as a Source of Innovation. The document proposes 23 supporting policies across four key areas, namely, jointly building the sci-tech innovation sources, developing world-class industrial clusters, cultivating a top international innovation ecosystem, and sharing sci-tech innovation resources. The document will take effect on January 1, 2026, and remain valid until December 31, 2030.

 

2.Shanghai Strengthens the Development of Open-source System

[Keywords: Open-source system]

Recently, the General Office of the Shanghai Municipal People’s Government issued the Implementation Plan for Strengthening the Development of Open-source System in Shanghai. The document proposes five major tasks, namely, consolidate fundamental open-source capacities, cultivate high-quality open-source projects, attract open-source talent, promote open-source culture, and coordinate open-source governance. It took effect on December 15, 2025, and will remain in force until December 14, 2028.

 

3.Shanghai High People’s Court Issues Opinions on Providing Judicial Services and Support to Accelerate Shanghai’s International Financial Center Development

[Keywords: International financial center, Judiciary]

On December 24, the Several Opinions of the Shanghai High People’s Court on Providing Judicial Services and Support to Accelerate the Development of Shanghai as an International Financial Center were released. The document focuses on five key areas: technology finance, green finance, inclusive finance, pension finance, and digital finance.

 

Q&A

An official of the Ministry of Commerce answered media questions on the Catalogue of Encouraged Industries for Foreign Investment (2025 Edition)

Q1

What are the main changes in this revision?

A1

The primary consideration of this revision is to guide more foreign investment into sectors such as advanced manufacturing, modern services, high and new technologies, and energy conservation and environmental protection, as well as into China’s central, western, and northeastern regions.

The 2025 edition of the Encouraged Catalogue follows the structure of the 2022 edition and consists of two parts. The first is the National Catalogue of Encouraged Industries for Foreign Investment (hereinafter referred to as the “National Catalogue”), which applies nationwide. The second is the Catalogue of Priority Industries for Foreign Investment in Central and Western Regions (hereinafter referred to as the “Regional Catalogue”), which applies to the central, western, and northeastern regions, and Hainan Province.

The 2025 edition of the Encouraged Catalogue contains a total of 1,679 items. Compared with the 2022 edition, there is a net increase of 205 items and a revision of 303 items. Of these, the National Catalogue comprises 619 items, including 100 newly added items and 131 revised items. The Regional Catalogue comprises 1,060 items, with 105 new items added and 172 items revised.

The main changes in this revision are as follows:

First, continued efforts will be made to encourage and guide foreign investment into advanced manufacturing. The National Catalogue continues to prioritize manufacturing as a key area for encouraged foreign investment. New additions include the development and production of nucleic acid drugs; R&D and production of zero-magnetic medical equipment; manufacturing of intelligent testing equipment and instruments; R&D and production of high-speed cameras; development and production of smart energy management and control systems as well as related measurement, testing, and monitoring equipment; design, R&D, and manufacturing of underwater robots for ships and deep-sea operations; manufacturing of key equipment for gas generators; and development and manufacturing of key basic components for robotics.

Second, active efforts will be made to encourage and guide foreign investment into modern services. The National Catalogue focuses on promoting the development of producer services as a key priority for this revision. New additions include the operation of generic technology platforms or service platforms for new materials, modern high-end shipping services, the operation of virtual power plants and related technology R&D. At the same time, the National Catalogue actively supports comprehensively boosting service consumption. A wider range of service consumption items has been included in the national encouraged scope. These items include pet hospitals and pet grooming services; sports tourism services; travel agency operations; consultancy, planning, design and operation services for the camping industry; design, brand development, and operation services for homestays; property management services; and “Internet + Healthcare” services.

Third, greater efforts will be made to guide more foreign investment into the central, western, and northeastern regions. We have further increased the number of regional entries by taking into account the resource endowments and industrial strengths of each region and adapting them to local conditions. For instance, new additions include cruise tourism product operation services in Liaoning Province; R&D and manufacturing of ice and snow equipment in Heilongjiang Province; R&D and production of high-end and intelligent lifting machinery and components in Henan Province; marine environmental governance, ecological restoration, and ecological demonstration project development in Hainan Province; R&D and manufacturing of small and medium-sized agricultural machinery suitable for hilly and mountainous areas in Chongqing Municipality; R&D and production of computing power infrastructure software and hardware in Guizhou Province; and wind farm operation in Qinghai Province.

 

An official of the Ministry of Commerce answers media questions on the Catalogue of Encouraged Industries for Foreign Investment (2025 Edition)

Q2

What preferential policies are available to foreign investment in encouraged sectors?

A2

Foreign investment in the sectors listed in the Encouraged Catalogue can primarily enjoy four preferential policies:

First, equipment imported for self-use within the total investment amount is exempt from customs duties, except for products that are not eligible for tax exemption under national regulations.

Second, encouraged industrial projects that make intensive use of land are given priority in land supply, and the minimum land transfer price may be set at no less than 70% of the national minimum price standard for industrial land transfer corresponding to the local land grade. Encouraged foreign-funded enterprises are also supported in adopting flexible land use arrangements, such as long-term leasing, “lease first, transfer later”, and flexible-term transfers, to reduce initial land use costs.

Third, enterprises investing in the western regions and Hainan Province may pay corporate income tax at a reduced rate of 15%.

Fourth, where foreign investors use profits distributed by domestic enterprises to directly reinvest into industries listed in the National Catalogue and meet relevant conditions, they are eligible for tax credit benefits.

 

Expert Perspective

Major Revision of Shanghai FTZ Regulations: The Upgrade Path of China’s High-standard Opening-up

By Jiang Fengwen (Chance Bridge Law Firm)

IV. The Leading Role of the Shanghai Pilot FTZ in Advancing the Development of Pilot FTZs Nationwide

2. The “Nursery” Function of Institutional Innovation: Replication and Adaptation of the Shanghai Experience Nationwide

As a pioneer within China’s pilot FTZ system, the Shanghai Pilot FTZ has seen its institutional innovation achievements disseminated nationwide through multiple channels. On the one hand, at the national level, the Shanghai experience has been institutionalised and replicated across the country through formal policy documents. For instance, the negative list model for foreign investment market access, pioneered by Shanghai, has been implemented nationwide. Furthermore, the number of items on the negative list has been reduced from 190 in 2013 to 30 in 2024, which represents a significant increase in the level of opening-up. On the other hand, various pilot FTZs across the country have proactively studied and drawn on Shanghai experience. By integrating Shanghai experience with local conditions, they have undertaken further innovation to develop institutional arrangements with distinct local characteristics.

In the field of investment administration, the “separation of certificates and licenses” reform, pioneered by the Shanghai Pilot FTZ, has been rolled out nationwide and effectively lowered the market entry threshold for enterprises. In the area of trade facilitation, the “China International Trade Single Window” model, first introduced in Shanghai, has become a standard feature for China’s port management system. The functions of the single window continue to expand, with declaration data items significantly reduced and customs clearance time markedly shortened. In the field of financial opening-up, the free trade account system explored by Shanghai has provided an important reference for financial reform in other pilot FTZs.

Most importantly, the Shanghai Pilot FTZ has also established cooperation mechanisms with other regions across the country through arrangements such as “collaborative zones” to promote the cross-regional influence of institutional innovation achievements. Article 7 of the Regulations clearly provides that “the city will improve coordinative and collaborative mechanisms for institutional innovation in the Shanghai Pilot FTZ, advance the development of collaborative zones, replicate and promote the reform pilot achievements, and promote coordinated industrial layout and opening up” and “strengthen cooperation and alignment between the Shanghai Pilot FTZ and other pilot FTZs across the country”. This regional coordination mechanism has amplified the influence of the Shanghai Pilot FTZ and helped create a new pattern of opening-up that integrates pioneering experience, regional collaboration, and nationwide implementation.

[To be Continued]

 

One Week in Shanghai

Latest News

1.Shanghai to Host Diverse Activities to Welcome the New Year

[Keywords: New Year celebrations]

Shanghai will host a series of New Year celebration activities in the coming days. From drone shows along the riverside to ice and snow carnivals in commercial areas, and from dazzling fireworks by the coast to colourful festivities at theme parks, visitors from home and abroad will gather in the city to enjoy New Year celebrations that blend ceremonial splendor with the vibrancy of street life.

 

2.The Shanghai Used Car International Trading Comprehensive Service Platform Launched in Waigaoqiao

[Keywords: Used cars, International trade]

The launch ceremony for the Shanghai Used Car International Trading Comprehensive Service Platform (Waigaoqiao) was held recently. The platform integrates high-quality resources across the entire industry chain to build a comprehensive service ecosystem. This ecosystem covers public services, exhibition and trading, inspection and reconditioning, logistics and transportation, export customs clearance, industry research, financial services, and overseas services, enabling a one-stop completion of all procedures.

 

3.China’s First Open Robot Leasing Platform Launched

[Keywords: Fully open, Robot leasing platform]

Recently, China’s first open robot leasing platform, Botshare, was officially launched in Pudong, alongside the unveiling of the Botshare Application Innovation Community. The core innovation of Botshare lies in transforming high-threshold robot usage scenarios into a convenient leasing model similar to shared power banks. This approach aims to address industry pain points such as high operating costs, complex cooperation chains, and severe content homogenization in the current robot leasing market. It allows enterprises and users to rent robots conveniently on demand.

 

Corporate Activities

1.Five More Large Enterprises Join Pudong GOI Program

[Keywords: Honeywell, Infineon, PHINIA-Delphi]

Recently, five more large enterprises have joined the Pudong Group Open Innovation (GOI) program. Newly accredited centers include the Honeywell China Science and Technology Innovation Center, the Infineon (Shanghai) Co-Innovation Space, and the PHINIA-Delphi Automotive Systems Open Innovation Center. To date, the number of GOI centers in Pudong New Area has reached 108. Together they have formed an innovation cluster that covers 12 countries across Asia, Europe, and the Americas, and spans 13 core technology sectors.

 

Competitive Events

1.Robotex Asia Finals to Debut in Hongqiao

[Keywords: Robotex]

The Robotex Asia Finals will be held at the National Exhibition and Convention Center (Shanghai) from January 2 to 3, 2026. Covering a venue area of more than 30,000 square meters, the event will feature a range of cutting-edge technology experiences, including drone performances and VR demos.

 

Culture & Art

1.2026 Musical Stars Live Concert Series Sets to Kick Off

[Keywords: Musical stars]

The 2026 Musical Stars Live Concert series will soon grace the stage at the Shanghai Culture Square. This series brings together leading voices from London’s West End, New York’s Broadway, and the German-Austrian and French musical theaters, including Alfie Boe, Lea Salonga, and Laurent Ban.