Shanghai Weekly Bulletin
lssue 2,September 2023
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 Action Plan to Leverage IPR and Expedite Industrial Innovation and Development
【Keyword：Intellectual Property Rights; Industrial Innovation】
The Ministry of Industry and Information Technology (MIIT) and the China National Intellectual Property Administration recently issued the Action Plan of Leveraging Intellectual Property Rights to Boost Industrial Innovation and Development (2023-2027). The Plan outlines ten key tasks in four areas and sets the goal that by 2027, there will be more significant achievements in the high-quality development of key industries in the fields of intellectual property and information technology, and the capacity to safeguard and strengthen industrial and supply chains through IPR will be further enhanced.
Source: MIIT
https://wap.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2023/art_a6abdf55cabe446ea447d935e7622366.html
2. Commerce Authorities of Yangtze River Delta Region Sign Agreement for Market Integration and Commerce Development
【Keyword：Yangtze River Delta; Market Integration】
Under the guidance of the Ministry of Commerce, commerce authorities in Shanghai, Jiangsu, Zhejiang and Anhui signed in Beijing the Agreement on Deepening Cooperation in Market Integration and Commerce Development in the Yangtze River Delta Region on September 5, 2023. According to the Agreement, the commerce authorities will deepen practical cooperation in six areas, including advancing the alignment of market rules and regulations, promoting inter-connectivity of commercial infrastructures, sharing commercial and trade circulation systems, exploring mutually beneficial cooperative production and sales of farm products, coordinating regional cooperation on supply chain management, and building a consumer-friendly market environment, to facilitate the national efforts of building a unified national market.
Source: website of the Chinese Government
https://www.gov.cn/govweb/yaowen/liebiao/202309/content_6902324.htm
3. China and South Africa to Implement AEO Mutual Recognition Arrangement from September
【Keyword：China-South Africa; AEO Mutual Recognition】
The General Administration of Customs recently issued the Announcement on Implementing the China-South Africa Customs "Authorized Economic Operator" (AEO) Mutual Recognition. It has been decided that the Mutual Recognition Arrangement Between the General Administration of Customs of the People's Republic of China and the South African Revenue Service Regarding the Chinese Customs Enterprise Credit Management System and the South African Revenue Service's “Authorized Economic Operator” System took effect on September 1, 2023.
Source: GAC
http://gdfs.customs.gov.cn/customs/302249/2480148/5310790/index.html
4. CSRC Consults Public on the Revised Measures for the Issuance and Trading of Corporate Bonds
【Keyword：Corporate Bond】
The China Securities Regulatory Commission (CSRC) released on September 8, 2023 the revised Measures for the Administration of the Issuance and Trading of Corporate Bonds (Exposure Draft) to solicit public opinions until October 8, 2023. The revised Measures aim to drive the coordinated development of enterprise bonds and corporate bonds, and further tighten the supervision over the bond market.
Source: CSRC
http://www.csrc.gov.cn/csrc/c101981/c7430977/content.shtml
【Shanghai】
1. Shanghai Releases Plan to Support Innovation-driven Development of Service Trade in Lin-gang Special Area
【Keyword：Lin-gang Special Area; Service Trade】
The Lin-gang Special Area Administration and the Shanghai Municipal Commission of Commerce recently released the Implementation Plan for Supporting the Lin-gang Special Area in Deepening High-standard Institutional Opening and Promoting Innovation-driven Development of Service Trade. The plan proposes the establishment of a demonstration zone as an international hub for digital trade in Shanghai, in-depth and innovation-driven development in key areas of service trade, and the creation of a comprehensive service trade promotion system.
Source: Shanghai Municipal Commission of Commerce
https://sww.sh.gov.cn/zwgkgfqtzcwj/20230905/e76c8ab8ecb34a62852987d059dce155.html
2. Shanghai Releases List of Administrative Licensing Items (2023 Edition)
【Keyword：Administrative Licensing Items】
The General Office of Shanghai Municipal People's Government recently released the List of Administrative Licensing Items in Shanghai (2023 Edition). The List comprises a total of 690 administrative licensing items and provides clear information about their competent authorities, item names, implementing agencies, and the basis for establishment and implementation.
Source: Shanghai Municipal People’s Government
https://www.shanghai.gov.cn/nw12344/20230904/a223491d37df4c2e89b070f11b3f262e.html
3. Shanghai Unveils Measures to Revitalize Auto Circulation and Expand Auto Renewal Consumption
【Keyword：Auto Circulation; Auto Renewal Consumption】
Eight departments and agencies including the Shanghai Municipal Commission of Commerce released on September 6, 2023 the Measures for Revitalizing Auto Circulation and Expanding Auto Renewal Consumption. The document, which took effect on September 7, 2023, proposed nine measures to phase out clunkers and boost auto consumption.
Source: Shanghai Municipal Commission of Commerce
https://sww.sh.gov.cn/zwgkhsgwj/20230907/fd9dbed22d344a49a6ec246a6edd19c6.html
4. Shanghai Bankruptcy Court Releases Plan to Pilot Test Action for Bankruptcy-derived Disputes
【Keyword：Bankruptcy; Derived Disputes】
Shanghai Bankruptcy Court recently released the Work Plan for Exploring the Source Governance of Bankruptcy-derived Disputes and Guiding Test Action (for Trial Implementation). The document is applicable to serial and collective bankruptcy-derived disputes with common facts and identical issues within the same bankruptcy case. When disputes are deemed necessary to be resolved through litigation, representative disputes may be selected for test action. After test standards are established, efforts will be made to resolve similar disputes through non-litigation methods.
Source: Shanghai Bankruptcy Court
One Week in Shanghai
【Forums & Exhibitions】
1. Registration for the Third Shanghai Talent + Summit & the Next Unicorn Forum Commenced
【Keyword：Entrepreneurship; Summit Forum】
The Next Unicorn Summit Forum will be held on September 20, 2023 at the Shanghai International Convention Center. Global venture capital investors, senior experts and scholars, and representatives from unicorn companies and future industry enterprises will attend the forum. The forum will provide a platform for young entrepreneurs to seek intellectual support, share resources, showcase tech achievements, and carry out project implementations, and it aims to create a fertile ground for young talents to fulfill their dreams and achieve business success.
Source:Invest Shanghai
2. The Second World Metaverse Conference to Be Held
【Keyword：Metaverse】
The Second World Metaverse Conference will be held on September 20-22 in Anting, Jiading District. The conference will focus on common issues related to the development of key technologies in the metaverse, exchange trends in metaverse technology and industry development, showcase key achievements and application scenarios, and provide a platform for innovation cooperation, exchange and ecosystem development in key technologies.
Source: Invest Shanghai
【Corporate Activities】
1. Schaeffler Greater China Headquarters’ New R&D Center Commences Operation
【Keyword：Schaeffler】
Schaeffler Greater China Headquarters' new R&D center has been inaugurated in Anting, Shanghai. The new building is located within the Automotive Innovation Port, with a total floor area of approximately 12,000 square meters, including R&D and testing areas and office spaces. The new building also houses Schaeffler's first innovation center in China, which focuses on incubating and applying innovative projects. The innovation center includes innovation laboratory, workshop, activity area, and shared workspace, among other facilities.
Source:Shanghai Foreign Investment Association
【Culture & Art】
1. Guide for Shanghai Museum Exhibitions in September
【Keyword：Museum】
It’s learned from Shanghai Municipal Administration of Culture and Tourism that a range of special museum exhibitions will be launched in September. Shanghai Museum is holding an archaeological exhibition of the Liangzhu Civilization as a convincing evidence that Chinese civilization has been lasting for more than 5,000 years, and it’s also the largest archaeological exhibition of the prehistoric civilization of the lower Yangtze River region. Shanghai World Expo Museum will present an exhibition to display valuable collections of the UK’s Victoria & Albert Museum. Minhang District Museum will hold a special exhibition of valuable cultural relics unearthed from the Dingling Mausoleum of Ming Dynasty.
Source: Shanghai Release
2. Sixth Shanghai Dream Theater Festival Kicks off
【Keyword：Theater Festival】
The sixth Shanghai Dream Theater Festival grandly opened on the afternoon of September 2, 2023. At every weekend until September 24, Urban Origins Theater Society, Shanghai Drama Academy’s Performance Department, Youyuan Theater Society, We Love Acting Team, Sound Enchantment Recitation Art Troupe, and the 'Drama Dreamers' students will present a series of extraordinary and wonderful dramatic feasts.
Source: Shanghai Huangpu
Q&A
Q1: Official at Shanghai Municipal Commission of Commerce answers questions from reporters regarding the Cooperation Agreement for Deepening Regional Market Integration on Business Development in the Yangtze River Delta. Which achievements have been made in advancing customs clearance integration in the Yangtze River Delta? What measures do you plan to take in the next stage?
A: In recent years, with the strong support of neighboring provinces and cities, some progress has been made in advancing customs clearance integration in the Yangtze River Delta. First, the Yangtze River Delta International Trade 'Single Window' section has been set up. This section not only offers functions for customs declaration and application but also provides logistics inquiry functions. Through the 'Single Window,' you can check the transportation status of goods and related information such as arrival times. Second, the collaborative processing of online business in the Yangtze River Delta region has been achieved. A series of project-based functions have been launched, including cross-regional data dashboards, cross-border bonded fuel refueling, and empty container transportation across coastal cities, among others. Third, there have been increased efforts to deepen functional cooperation and joint construction under the 'Single Window' framework. Pilot projects with Zhejiang and Jiangsu on order-based data exchange have been initiated. Fourth, the exploration of cross-border customs clearance for Yangtze River Delta enterprises is underway. In June 2023, the Cooperation Agreement on Sharing Shanghai-Singapore International Trade Facilitation Measures in the Yangtze River Delta was signed, providing digital services for enterprises with 'single declaration, multi-port customs clearance'.
The practice of customs clearance integration in the Yangtze River Delta has played a positive role in promoting regional trade development. First, it serves a quarter of China’s cargo trade volume. Shanghai's 'Single Window' supports data processing for a quarter of the nation's trade volume, making it the world’s largest single window in terms of data processing. The second is to introduce remote declaration for cross-border trade. In the first half of this year, the Yangtze River Delta accounted for nearly 80% of cargo trade volume in Shanghai ports. Services like remote declaration for cross-border trade facilitate the import and export of goods in the Yangtze River Delta region. The third is to help improve business environment. The World Bank's Ease of Doing Business report hailed the role of 'Single Window' in reducing cross-border trade time and costs and recommends Shanghai’s practices in international trade.
In the next step, we will work together with Jiangsu, Zhejiang and Anhui to advance further development of customs clearance integration in the Yangtze River Delta. First, we will explore the integration of special functions. The International Trade 'Single Window' has accumulated a significant amount of cargo declaration and logistics data. Based on the data, we can provide supply chain finance services to enterprises. To adapt to the new trends in trade development, the Shanghai International Trade 'Single Window' will try to provide carbon footprint tracking and carbon emission calculation services for enterprises in the Yangtze River Delta region. Second, we will promote mutual assistance on cross-border customs clearance. Building on the achievements of the 'Shanghai-Singapore Council', we will expedite the establishment of Yangtze River Delta-Singapore customs service mechanism and standards.
Source:MOFCOM
http://interview.mofcom.gov.cn/detail/202309/ff8080818a6386cf018a64000cba0007.html
Expert Perspective
The Establishment of Legislative Framework on Data Security – Analysis of the Key Points of the Data Security Law of the People's Republic of China
By Liu Xinyu, Wu Haoli (Zhong Lun Law Firm)
[Continuing from the last issue]
The sixth point is to impose tough administrative penalties
The sixth chapter of the Data Security Law stipulates relatively strict legal responsibilities and administrative penalties, reflecting both legislative attention to data security issues and the deterrence it provides for organizations and individuals. Administrative penalty measures include ordering corrections, issuing warnings, imposing fines, ordering the suspension of relevant business operations, conducting business rectification, revoking business licenses, among others. The targets of punishment include organizations and individuals engaged in data processing activities, as well as directly responsible managers and other individuals with direct responsibilities within organizations.
When the first draft of the law was made public, both academia and the industry believed that the administrative penalties were too lenient, resulting in relatively low legal costs for enterprises that failed to fulfill their data security protection obligations. In light of this, the second draft significantly increased the legal responsibilities for failing to fulfill data security protection obligations, raising the upper limit of fines, expanding the scope of punishment targets, and substantially intensifying the forms of liability. Furthermore, compared to the second draft, the final version further raised the administrative penalty standards, greatly enhancing the deterrent on organizations and individuals.
As for the penalty standards stipulated in the sixth chapter of the Data Security Law, the second draft set the upper limit of fines at RMB5 million, while the final version raised this limit to RMB10 million. If a company violates the national core data management system and harms national sovereignty, security, and development interests (Article 45), or if it violates Article 31 of the law, or provides important data to overseas entities under severe circumstances (Article 46), it may face the maximum fine of RMB10 million. For directly responsible managers and other individuals with direct responsibilities, the maximum fine they may face has also been raised from RMB500,000 to RMB1 million. With a significant increase in the cost of non-compliance, companies may need to put more efforts into compliance.