Issue 37
Shanghai Weekly Bulletin
No. 4,March 2024
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 Takes Measures to Enhance Its Appeal to and Effective Utilization of Foreign Investment
【Keyword: Foreign Investment Introduction】
The State Council recently released the Action Plan on Solidly Promoting High-level Opening-up and Intensifying Efforts to Introduce and Utilize Foreign Investment. Highlighting 24 measures in five aspects, the document calls for giving full consideration to both domestic and international imperatives, fostering a world-class business environment that is market-oriented, law-based, and internationalized, fully leveraging China’s super-sized market, shoring up the confidence of foreign investors in developing businesses in China, and boosting the quality and level of trade and investment cooperation.
Source: Website of the Chinese Government
https://www.gov.cn/zhengce/content/202403/content_6940154.htm
2. China Unveils Regulations for the Implementation of Consumer Rights Protection Law
【Keyword: Protection of Consumer Rights and Interests】
The Regulations for the Implementation of the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests were released on March 15, 2024 and will take effect on July 1, 2024. With 53 articles in seven chapters, the regulations make detailed provisions on consumers’ rights, business operators' obligations, the protection of consumers’ legitimate rights and interests in China, consumer organizations, resolution of disputes, and legal responsibilities.
Source: Website of the Chinese Government
https://www.gov.cn/zhengce/content/202403/content_6940158.htm
【Shanghai】
1. Shanghai Issues Measures to Implement the Regulations for the Prevention and Disposal of Illegal Fundraising
【Keyword: Illegal Fundraising】
The Measures for Shanghai to Implement the Regulations for the Prevention and Disposal of Illegal Fundraising were recently released and will take effect on May 1, 2024. With 32 articles in five chapters, the measures are applicable to the prevention of illegal fundraising within the administrative area of Shanghai, as well as the disposal of illegal fundraising by administrative organs.
Source: Shanghai Municipal People's Government
https://www.shanghai.gov.cn/nw12344/20240320/00d9c09171a346069db2354b5ec64b0e.html
2. Shanghai Issues Measures to Strengthen Tax and Fee Collection Services
【Keyword: Tax and Fee Collection】
The Measures of Shanghai for Tax and Fee Collection Services and Guarantee were recently released and will take effect on April 1, 2024. With 33 articles in five chapters, the document stipulates that taxes and fees include taxes collected by tax authorities, social security contributions and government non-tax revenues. It is applicable to tax collection services and guarantee within the administrative area of Shanghai.
Source: Shanghai Municipal People's Government
https://www.shanghai.gov.cn/nw12344/20240320/48874765a80e47f6909194d86cd17418.html
3. Shanghai Releases Anti-unfair Competition Work Priorities for 2024
【Keyword: Anti-unfair Competition】
Shanghai Municipal Administration for Market Regulation recently issued the Anti-unfair Competition Work Priorities for 2024 (Regulating Direct Selling and Combating Pyramid Selling). The document proposes to intensify efforts to fight against unfair competition and drive high-quality economic development, and strengthen the protection of trade secrets to improve business environment.
Source: Shanghai Municipal Administration for Market Regulation
https://scjgj.sh.gov.cn/210/20240319/2c984a728e37318e018e557b46954285.html
4. Shanghai Proposes Measures for the Building of Social Credit System in 2024
【Keyword: Social Credit System】
Shanghai Social Credit Building Office issued on March 15, 2024 the Work Priorities for the Building of Shanghai's Social Credit System in 2024. The document proposes 20 work measures in seven aspects, including serving the national major strategies and the key work of Shanghai and building a new credit development pattern, enhancing credit empowerment in key areas to boost the real economy, deepening the reform of the credit supervision mechanism and improving business environment, and expanding credit application scenarios to promote the innovation in credit services.
Source: Shanghai Municipal Development and Reform Commission
https://fgw.sh.gov.cn/fgw_shxytj/20240320/f045e9d91d5f4065baf2201ae9ebc806.html
One Week in Shanghai
【Forum & Exhibition】
1. GSA to Be Held in Pudong in June
【Keywords: Low Carbon; Smart Auto】
The Green and Smart Auto Shanghai 2024 (GSA) will be held at the Shanghai New International Expo Center on June 5-8. Covering an area of 60,000 square meters, the exhibition will showcase green solutions and cutting-edge products in the auto-related supply chains. GSA aims to become an important platform for news release, exchange and cooperation in the auto and tech industries, and promote cross-industry exchanges, innovation and cooperation.
Source:Pudong Release
2. Tourism Plus Shanghai 2024 Kicks off
【Keyword: Tourism Plus Shanghai】
The Tourism Plus Shanghai 2024 will be held at the Shanghai New International Expo Center and the National Exhibition and Convention Center (Shanghai). With an exhibition area of 600,000 square meters, the event attracts more than 5,000 exhibitors from over 30 countries and regions, covering 38 categories in 12 segments. As Shanghai is striving to become the “first stop for inbound tourists to China”, the number of overseas spectators is expected to further increase. The spectators will come from over 120 countries and regions, with professional visitors exceeding 400,000.
Source:Shanghai Tourism
【Culture & Art】
1. Shanghai Museum East Unveils One More Permanent Exhibition
【Keyword: Shanghai Museum East】
The Shanghai Museum East launched on March 16, 2024 its second permanent exhibition, the Ancient Chinese Sculptures Exhibition, after a major upgrade and expansion over the old location. It presents the unique ancient Chinese sculpture art to visitors. Among the nearly 300 objects displayed at the exhibition, one-third are on public display for the first time, and there are many representative treasures and orphaned cultural relics.
Source: Pudong Release
2. Shanghai Grand Theater Unveils Spring and Summer Shows for the 2023-2024 Season
【Keyword: Shanghai Grand Theater】
Shanghai Grand Theater unveiled on March 19, 2024 a list of highlighted shows in spring and summer as part of the 2023-2024 season. From now until early August, the theater will present a total of 345 performances, which feature famous art groups and prestigious artists, traditional dramas and modern plays as well as large and small productions. It will bring a series of wonderful performances to the audience during the spring and summer.
Source:Shanghai Tourism
【Corporate Activities】
1. Apple Store Opens in Jing'an District, Shanghai
【Keyword: Apple Store】
Apple's largest flagship store in the Chinese Mainland officially opened in Jing'an District on March 21, 2024. The new Apple Store showcases Apple's most excellent product lineup to date. The store will present "Today at Apple" special courses to highlight the charm of local culture. The "Bloom in Jing'an" series of activities will pay tribute to the local community and its creators, inviting the next generation of creators in Shanghai to take the stage and show off their versatile skills with the help of iPhone's pioneering functions.
Source:Shanghai Jing'an
2. KPMG Locates Its Largest Office Worldwide in Hongqiao
【Keyword: KPMG】
KPMG China’s new office KPMG Campus (KAMPUS), which is located in the Hongqiao International Central Business District (Minhang), will officially open at the end of March. At present, about 40% of KPMG employees in Shanghai have moved to KAMPUS. KPMG is one of the Big Four accounting firms and an international professional services organization, and KAMPUS will become the largest office space in KPMG's global network in the future.
Source:Minhang Today
Q&A
Q1: Officials from the Foreigners Management Department of the National Immigration Administration (NIA) answered reporters' questions at a regular briefing held by the State Council Information Office related to government policies to promote high-level opening up and intensify efforts to introduce and utilize foreign investment - We have noticed that China plans to unblock the flow of innovation factors and enhance services to consolidate the confidence of foreign investors in China's development outlook. So what other measures the NIA is taking to facilitate foreign nationals to work, study, invest and start businesses in China?
A: We welcome more foreign friends to travel, work, study, invest and start businesses in China. The NIA provides efficient and convenient immigration management services, and works together with human resources and social security departments to strengthen information sharing, optimize application procedures, integrate application documents, and accelerate the issuance of foreign personnel work permits and work-type residence permits. For foreign nationals who have made two applications for a longer-than-one-year work-type residence permit in China, as well as foreign executives and professionals working at well-known enterprises and scientific research institutions, and members of research teams, the exit and entry management department can issue a residence permit for five years, and those who meet relevant conditions can be approved for permanent residence in China. At the same time, foreign business managers and professional technicians working in China are allowed to transfer their jobs within the same employer across different regions, or to study for degrees and receive continuing education in Chinese universities without having to re-apply for a residence permit.
The NIA has beefed up efforts to reduce certificates. When foreign nationals apply for residence documents for investment, entrepreneurship, work and study in China, they do not have to leave their passports to immigration department after on-site examination. They can hold their passport at the agreed time and get a residence permit, so that they can use passport to handle other matters during the period. When accepting applications for foreign personnel's visa documents, if the applicant's accommodation registration record, inviting (employing) company's business license and other information can be queried through inter-department information sharing, the relevant paper certification materials will be exempted from examination. In the meantime, we will continue to strengthen the application of informatization and enrich the functions of the immigration service platform to realize online appointment and application, online inquiry of application progress, and online inquiry of personal visa information, further improving the process of visa application & approval for foreigners.
In the next stage, the NIA will work closely with relevant departments to attract talents and investment, create first-class business environment and introduce more active, open and effective entry and exit policies and measures, to make greater contribution for our country to drive high-level opening-up and attract and utilize foreign investment.
Source: State Council Information Office
http://www.scio.gov.cn/live/2024/33491/tw/
Expert Perspective
Several Issues to Be Watched and Addressed by Foreign Businesses under New Company Law
By: He Kan, Chen Leyi, Gao Fangjiao, Liu Zijing, Yang Yanhua (Junhe Law Firm)
[Continuing from the Last Issue]
Q5: Director Liability Insurance
The New Company Law introduces directors' liability insurance for the first time. According to Article 193, a company can purchase liability insurance for directors to cover potential liabilities associated with performing the company's duties during the director's term of office. After the company has purchased or renewed liability insurance for its directors, the board of directors shall report to the shareholders' meeting the insured amount, coverage and premium of the liability insurance. Currently, only directors are mentioned in the insurance coverage, and supervisors and senior managers are not included.
In the context of increased risks associated with duty performance by directors, supervisors and senior executives, the company may face situations where some personnel are unwilling to serve as directors, supervisors and senior executives or resign due to concerns about potential job-related risks, thereby adversely affecting the company's operations and management. Under such circumstances, it is advisable to provide related legal knowledge to directors, supervisors and executives, so that they can understand what can and cannot be done as they perform job duties; on the other hand, liability insurance can be introduced to provide some level of protection for them. The insurance eliminates some of their concerns, and at the same time shares some risks for the company, preventing the company from bearing heavier liability for compensation for the actions of directors, supervisors and senior executives and thus damaging the company's interests.
[To Be Continued]