Shanghai releases national economic performance of 2025 (Issue 129)

Foreign Affairs Office of the Shanghai Municipal People's Government

Laws and Regulations

National

1. MIIT Revises and Releases Administrative Measures for Tiered Cultivation of High-quality SMEs

[Keywords: High-quality SMEs, Tiered cultivation]

Recently, the Ministry of Industry and Information Technology (MIIT) issued the newly-revised Administrative Measures for Tiered Cultivation of High-quality Small and Medium-sized Enterprises (SMEs). The document expands the cultivation base and, for the first time, integrates technology-based SMEs into the tiered cultivation framework. Moving forward, the tiered framework for high-quality SMEs will comprise technology and innovation-based SMEs, specialized, sophisticated, distinctive, and innovative SMEs, and specialized, sophisticated, distinctive, and innovative “little giant” enterprises. The document will take effect on April 1, 2026.

Source: MIIT WeChat Official Account

2. Five Authorities Roll out Loan Interest Subsidy Policy for MSMEs

[Keywords: MSMEs, Loan interest subsidy]

Recently, the Ministry of Finance and four other authorities jointly issued the Notice on the Implementation of the Loan Interest Subsidy Policy for Micro, Small and Medium-sized Enterprises (MSMEs). The central fiscal authority will provide loan interest subsidies to MSMEs, covering fixed-asset loans newly issued by participating banks from January 1, 2026, and funds provided by the government’s new policy-based financial instruments. Interest subsidies will be set at 1.5 percentage points per year, with a maximum subsidy period of two years. The loan amount eligible for subsidies will be capped at RMB 50 million per borrower.

Source: Ministry of Finance

3. NFRA Releases Regulations on Procedures for Implementing Administrative Licensing

[Keywords: Financial regulation, Administrative licensing]

Recently, the National Financial Regulatory Administration (NFRA) issued the Regulations on Procedures for Implementing Administrative Licensing. The document adapts to the requirements of the financial regulatory system reform, clarifies a tiered and categorized handling mechanism, and further improves the workflow of administrative licensing. The document will take effect on March 1, 2026.

Source: NFRA

4. Five Authorities Jointly Release Notice on Establishing and Adjusting Duty-free Shops at Ports of Entry

[Keywords: Duty-free shops at ports of entry]

On January 21, the Ministry of Finance, the Ministry of Commerce, the Ministry of Culture and Tourism, the General Administration of Customs, and the State Taxation Administration jointly released the Notice on Matters Concerning Duty-free Shops at Ports of Entry. The document proposes to establish one new duty-free shop at each of the 41 ports of entry, including one at the Shanghai Port International Cruise Terminal.

Source: Ministry of Finance

Shanghai

1. Shanghai Unveils Its First Action Plan for Building a Global Supply Chain Management Center Agglomeration Area

[Keywords: Global supply chain]

Recently, the Hongqiao International Central Business District Administration released the Action Plan for Building a Global Supply Chain Management Center Agglomeration Area in the Hongqiao International Central Business District. The document sets out three dedicated initiatives, namely, fostering market entities, expanding global presence, and enhancing production factors, to attract and host a cluster of 10-billion-yuan class global supply chain management centers.

Source: Shanghai Hongqiao

2. Shanghai Pudong New Area Advances the Development of Zhangjiang AI Innovation Town

[Keyword: AI]

Recently, the General Office of the People’s Government of Shanghai Pudong New Area released the Work Plan for Advancing the Development of Zhangjiang AI Innovation Town in Pudong New Area. The document sets out 16 tasks across four key areas, with the aim of building a world-class AI industrial cluster and developing a globally influential hub for innovation in vertical application scenarios.

Source: People's Government of Shanghai Pudong New Area

Q&A

An official from Ministry of Finance answers media questions at a State Council Information Office (SCIO) press conference on leveraging proactive fiscal policies to drive high-quality economic and social development.

The first executive meeting of the State Council this year reviewed and rolled out a package of fiscal and financial policies to boost domestic demand, which has drawn widespread public attention. Could you provide more details on the content and key points of this policy package?

The policy package can be summarized as “one goal,” “two priorities,” “three principles,” and “six policy measures”.

The “one goal” refers primarily to expanding domestic demand. It aligns with the requirements for expanding domestic demand set out by the Central Economic Work Conference, with the policy package’s title serving as a clear testament to this priority.

The "two priorities" refer to making greater efforts to "stimulate private investment" and to “promote household consumption”. Investment and consumption are both critical components of domestic demand.

The "three principles" refer to the guiding principles for implementation. The first principle is to uphold convenience and efficiency. In designing these policies, we have streamlined procedures to the greatest extent possible. Policy benefits can now be enjoyed and fiscal interest subsidies be disbursed directly both without the need for application. Once a loan is signed, the interest subsidy is applied throughout the entire process. The second principle is to uphold precision and effectiveness. Efforts will focus on supporting key sectors and priority groups, reducing financing costs and thresholds for enterprises, and strengthening consumer purchasing power. The third principle is to uphold compliance and efficiency. This involves striking a proper balance between efficiency and compliance. We must ensure that policies are fully and effectively implemented while preventing fraudulent or improper claims on fiscal funds.

The "six policy measures" include four measures to support private investment and two measures to support and promote consumption. The refinement of this policy package builds on supporting measures previously introduced, and is the result of extensive consultations with industry, experts, and scholars. I will now walk you through the measures one by one.

The first measure is the loan interest subsidy policy for MSMEs. This is a new policy designed to support the development of MSMEs. It primarily provides loan interest subsidies to enterprises in related fields. Key fields of support include 14 priority industrial chains and their upstream and downstream sectors, such as new energy vehicles, industrial robots, medical equipment, and mobile communications equipment, producer service sectors including technology, logistics, information and software, and sectors such as agriculture, forestry, animal husbandry and fishery. The interest subsidy is set at 1.5 percentage points of the loan amount per year, with a maximum subsidy period of two years. The loan amount eligible for subsidies will be capped at RMB 50 million per borrower.

The second measure is a special guarantee program for private investment. This is also a new policy primarily designed to provide loan guarantees for MSMEs. Eligible enterprises may receive support for medium and long-term loans required for business operations such as expansion, transformation, and upgrading of production scenarios, as well as factory expansion and renovation and shop decoration. The maximum guaranteed loan amount available to a single enterprise is RMB 20 million.

Let me elaborate further. The traditional government-backed financing guarantee system mainly focuses on supporting small businesses and the agricultural sector. This newly-established special guarantee program for private investment expands its support to medium-sized enterprises, and raises the credit limit for MSMEs under this program to RMB 20 million per borrower, which represents a significant increase. At the same time, we have set a higher compensation cap and risk-sharing ratios. As illustrated by the example mentioned earlier, this is a major breakthrough compared with the traditional system and is intended to support a broader range of MSMEs.

The third measure is a risk sharing mechanism for private enterprise bonds. This is also a new policy. The central government has specially allocated risk-sharing funds to work in synergy with the existing policies of the central bank. These funds aim to provide credit enhancement support for bonds issued by private enterprises and private equity firms, and to compensate investors for a portion of their losses. It functions similarly to the guarantee policy tools mentioned earlier. By sharing a portion of the credit risks in the market, it helps enterprises lower the threshold for financing.

The fourth measure is the loan interest subsidy policy for equipment upgrades. This is an optimization of existing policies, with a primary focus on expanding the scope of subsidies. In addition to equipment procurement projects already covered, the policy now includes fixed asset loans related to equipment updates as well as loans for sci-tech innovation in the interest subsidy framework. Eligible enterprises may receive interest subsidies of 1.5 percentage points of the loan amount for a term not exceeding two years. Furthermore, we have expanded the sectors covered and increased the number of participating banks.

The fifth measure is the loan interest subsidy policy for service sector entities. This is an optimization of the policy introduced last year. Under the revised policy, the maximum loan amount per borrower has been raised from RMB 1 million to RMB 10 million. An interest subsidy of 1 percentage point will be provided for a term of one year, with each enterprise eligible for a maximum subsidy of RMB 100,000. The scope of coverage has been broadened to 11 consumer sectors. In addition, the number of participating institutions has been expanded to include more than 90 banks, encompassing all city commercial banks, provincial-level rural commercial banks, capital- city-level rural commercial banks, and foreign-funded banks with a regulatory rating of 3A or above. Expanding the scope of participating institutions will help strengthen the role of financial services at the grassroots level and better serve a wide range of business entities in the service sector.

The sixth measure is the interest subsidy policy for personal consumption loans. This is also an optimized policy. Residents who use personal consumption loans for any consumption purposes are eligible for an interest subsidy of 1 percentage point. This policy also includes credit card installment services within the scope of interest subsidy support. During the preliminary discussions, there were strong calls to include credit cards in the scope of interest subsidies for consumption loans. In response, we have now optimized the policy accordingly. To benefit all types of consumers in both urban and rural areas, the range of participating institutions has been expanded to include city commercial banks, rural commercial banks, foreign-funded banks, consumer finance companies, and auto finance companies with a regulatory rating of 3A or above, bringing the total number of eligible institutions to more than 500.

The fiscal expenditures required for the above-mentioned pro-business and pro-resident policies have been fully allocated in the 2026 budget. Local governments and participating institutions are encouraged to actively carry out relevant operations. The more they deliver, the more support they will receive. Similarly, enterprises and residents may secure more loans based on their specific production and consumption needs, benefiting more from higher participation. Moving forward, we will continue to strengthen coordination with relevant departments, stimulate the vitality of micro-level market participants through innovative macro regulation, and make every effort to ensure the effective implementation of all the above policies.

Source: SCIO

Expert Perspective

China's New Mineral Resources Law: Opening a New Era of Strategic Opportunities for Foreign Investors in China's Mining Sector

By Yang Guisheng, Zhu Qi, Wang Yonghui, and Shi Ranran (Beijing Dacheng Law Offices)

[Continued from the Previous Issue]

I. Transformation of the Mining Rights Management Regime: From an "Approval-Based" Model to a "Property-Rights-Based" Framework

2. Direct transition mechanism for converting exploration rights to mining rights

The New Mineral Resources Law implements a direct transition mechanism for converting exploration rights to mining rights. Under this system, after identifying mineral resources that are suitable for extraction, the exploration rights holders are entitled to apply for the conversion of their exploration rights to mining rights. This means that obtaining mining rights has become one of the inherent statutory rights of the exploration rights holders. Once exploitable mineral resources are identified, the exploration rights holders may, as a matter of course, apply for and obtain the corresponding mining rights. This reform has strengthened investment confidence and enhanced the willingness of exploration rights holders to engage in exploration activities.

The New Mineral Resources Law also innovatively establishes a new exploration rights retention mechanism and further provides comprehensive protection of the rights and interests of exploration rights holders. In cases where exploration rights cannot be temporarily converted to mining rights due to public interest, force majeure, or other special circumstances, the exploration rights holder may apply for the retention of exploration rights, and the original authority responsible for granting mineral rights shall process the application. During the exploration rights retention period, the calculation of the exploration rights term shall be suspended.

The implementation of the direct transition mechanism for converting exploration rights to mining rights reduces investment risks for investors and significantly enhances the attractiveness of China’s mining market to global capital.

II. Breakthroughs and Diversified Approaches in the Mineral Land Use Regime

The New Mineral Resources Law makes systematic provisions for mining land use and establishes a land use regime that aligns with the characteristics of mining production. It effectively addresses the long-standing challenge of “legal mining but illegal land use” that has plagued the industry. This reflects a shift in governance philosophy from the “separation of mineral rights and land use rights” to “coordinated management of mining and land use”. This reform creates a more stable, transparent, and predictable land use environment for the development of the mining industry.

1. Innovation at the planning level

The New Mineral Resources Law clearly requires that the formulation of territorial spatial planning should consider the practical land use needs for mineral resource exploration and mining. This means that mineral development is no longer a passive element adapting to land use planning but is integrated through overall arrangements at the spatial layout stage.

The formulation of planning must take into consideration factors such as resource distribution, geological conditions, and the ecological environment. It must also properly handle the relationship between mineral development and control lines, including ecological protection redlines and permanent basic farmland, to reduce the occurrence of mineral resources being constrained by other land uses. This “planning first” philosophy provides stable spatial assurance for the implementation of mining projects and offers investors a more predictable development environment.

(To be continued)

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