Issue 58

Shanghai Weekly Bulletin

No.3,August 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. STA Unveils Measures to Facilitate Cross-regional Relocation of Taxpayers

【Keywords: Green Transition】

 

The State Taxation Administration (STA) recently issued the Circular on Further Facilitating Cross-regional Relocation of Taxpayers and Serving the Building of a Unified National Market, which will take effect on September 1, 2024. The document introduces a series of measures across the entire relocation process, ranging from “optimizing advance reminders” to "speeding up the handling process" and "improving after-services". It aims to facilitate cross-regional relocation of taxpayers, continue to improve tax-based business environment, and better serve the building of a unified national market. 

 

Source: STA

https://fgk.chinatax.gov.cn/zcfgk/c102424/c5233779/content.html

 

2. SAMR Consults Public on Draft Anti-monopoly Guidelines in Medicine-related Sectors

【Keywords: Medicine-related Sectors; Anti-monopoly】

 

The State Administration for Market Regulation (SAMR) recently released the Anti-monopoly Guidelines in Medicine-related Sectors (Exposure Draft) for public comments until August 23, 2024. Targeting prominent issues, the document lists typical monopolistic behaviors in medicine-related sectors, with the principles for enforcement of law and the criteria for the determination of monopolistic behaviors in the sectors clarified. 

 

Source:SAMR

https://www.samr.gov.cn/hd/zjdc/art/2024/art_709b7b3bed794e1ca464524d1e5a3dcd.html

 

【Shanghai】

1. Shanghai Plans for High-quality Development of Low-altitude Economy

【Keyword:Low-altitude Economy】

 

Shanghai Municipal People’s Government recently released the Action Plan for the High-quality Development of the Low-altitude Economy in Shanghai (2024-2027). The document rolls out 23 major tasks in six aspects, stating that Shanghai will collaborate with cities in the Yangtze River Delta to build the nation’s first batch of inter-provincial low-altitude aviation cities, and establish a comprehensive national-level low-altitude economy demonstration zone to enhance its global influence in low-altitude economy.

 

Source:International Services Shanghai 

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20240801/e682c0233b1340c48a207b33ac0d35a6.html

 

2. Shanghai Releases Eight Typical Cases Concerning People's Wellbeing

【Keywords: People's Wellbeing; Typical Cases】

 

In 2024, Shanghai Municipal Administration for Market Regulation has been continuously carrying out law enforcement actions to handle cases concerning people's wellbeing, and dealing with unlawful activities in eight areas including product quality and safety, food safety, special equipment safety, inspection and testing certification, measurement, intellectual property rights, consumer rights protection, and anti-monopoly concerning people's wellbeing. The administration recently announced the fourth batch of typical cases concerning people's wellbeing in 2024.

 

Source:Shanghai Municipal Administration for Market Regulation 

 

3. Shanghai Issues Rules Governing Public Parking Facilities

【Keywords: Public Parking Facilities】

 

Shanghai Municipal Transportation Commission and other four government departments in the city have jointly issued the Provisions on the Construction, Operation and Management of Public Parking Facilities in Shanghai, which will come into effect on September 10, 2024. Combined with the implementation of a new round of pro-people projects, the new rules will effectively speed up the construction of public parking facilities, and incorporate the construction, operation and management of public parking facilities into a long-term work mechanism.

 

Source:Shanghai Release

 

One Week in Shanghai

【Latest News】

1. Shanghai Establishes “FTZ-linked Innovation Zones” 

【Keywords:Pilot Free Trade Zone; FTZ-linked Innovation Zone】

 

At a press conference held by the Information Office of Shanghai Municipal People’s Government, an official with the Shanghai Municipal Development and Reform Commission introduced the establishment of “innovation zones” linked to the China (Shanghai) Pilot Free Trade Zone (FTZ). Specifically, the zones were established in six districts of Huangpu, Xuhui, Hongkou, Yangpu, Baoshan, and Minhang, as well as in six comprehensive bonded areas outside the FTZ, including Songjiang, Caohejing, Fengxian, Jinqiao, Qingpu, and Jiading. There is a specific plan for each of the zones. 

 

Source:Shanghai Release

 

2. Foreign Nationals Visit One-stop Integrated Service Center

【Keywords:  One-stop Integrated Service Center for International Visitors】

 

Accompanied by staff of the Foreign Affairs Office of Shanghai Municipal People’s Government, some 40 foreign nationals, including officials from nearly 20 consulates of foreign countries in Shanghai including Chile and Uzbekistan, as well as some foreign journalists stationed in Shanghai and international experience officers, made a visit to the One-Stop Integrated Service Center for International Visitors at Terminal 2 of Pudong Airport on August 15. Since the center was put into trial operation one and a half months ago, it has received more than 25,000 business consultations.

 

Source:Foreign Affairs Office of Shanghai Municipal People’s Government

 

【Forum & Exhibition】

1. Dishui Lake Rule of Law Forum 2024 Kicks off 

【Keywords:  Dishui Lake Rule of Law Forum】

 

In order to further enhance the efficiency of Pudong Court in serving and safeguarding the development of Lingang Special Area, and create a sound business environment based on the rule of law, the Administration of Lingang Special Area and Pudong Court have jointly planned a series of “Lingang Law Week” activities titled the Dishui Lake Rule of Law Forum 2024, which kicked off on August 19 and will last until August 23.

 

Source:Shanghai Lingang

 

2.  Pet Fair Asia 2024 to Kick off at Shanghai New International Expo Center

【Keywords: Pet Fair Asia】

The Pet Fair Asia 2024 will be held at the Shanghai New International Expo Center on August 21-25. As the flagship exhibition in the global pet industry, the event is set to cover a record exhibition area of 300,000 square meters around 17 halls, seven supply chain halls and outdoor areas, bringing together more than 2,500 exhibitors from China and all over the world. 67 conferences and 56 consumer activities will be held concurrently to create a gala of the year for the pet industry.

 

Source:Pudong Release

 

【Competitive Event】

1. Shanghai to Host 2024 FIM Motocross World Championship 

【Keywords: Motocross World Championship】

 

Renowned as one of the world’s four major motorcycle races alongside F1, MotoGP, and WRC, the 2024 FIM Motocross World Championship (MXGP) of China, Shanghai will be held at the Shanghai International Off-road Circuit from September 14 to 16. This marks the return of the international A-class tournament to China, five years after its debut in Shanghai in 2019. 

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Events/20240814/1db125a379b04589aa9eb16dda2daf52.html

 

【Culture & Art】

1.Yuanying Pagoda Relics Exhibition Opens at Shanghai Museum East

【Keywords: Yuanying Pagoda】

 

The “A Towering Treasure House: Relics of the Yuanying Pagoda in Shanghai" has been open to the public in Exhibition Gallery 2 of Shanghai Museum East since August 14, and it will last until November 11. The exhibition presents 300 pieces of precious relics discovered in the Yuanying Pagoda in three parts. The first part showcases the general archaeological achievements of Yuanying Pagoda, the second part displays Buddhist-themed objects that were discovered in the pagoda, and the third part takes visitors back to the lives of their ancient ancestors. 

 

Source: International Services Shanghai

https://english.shanghai.gov.cn/en-Cultural%20and%20Artistic%20Experiences-Videos-WhatsNew/20240816/8e1b93cb3c8c40918bba365fb0a63847.html

 

2. Shanghai Philharmonic Orchestra Kick-starts 2024/25 Concert Season

【Keywords: Shanghai Philharmonic Orchestra】

The opening concert of the Shanghai Philharmonic Orchestra's 2024-2025 music season will be staged at the Concert Hall of Shanghai Oriental Art Center on September 5, kicking off a new round of "Music Appointment" between the Shanghai Philharmonic Orchestra and artists at home and abroad as well as music fans and audience. 

 

Source:Shanghai Philharmonic Orchestra

 

3. Exhibition of Pan Yuliang's Artistic Journey Opens in Shanghai

【Keywords: Pan Yuliang】

 

The special exhibition From Shanghai to Paris – the Artistic Journey of Pan Yuliang, jointly curated by Shanghai World Expo Museum and Anhui Museum, has opened at Temporary Hall 1, Shanghai World Expo Museum in celebration of the 60th anniversary of the establishment of China-France diplomatic relations. Featuring a hundred carefully selected exhibits and for the first time cutting into the narrative from the perspective of Shanghai, the exhibition tells the story of Pan's artistic creation and personal life, as well as the profound influence of Shanghai and Paris, the two capitals of art, on her.

 

Source: Shanghai World Expo Museum

 

【Corporate Activities】

1. Invista Completes Expansion of Its Nylon 6,6 Polymer Site in Shanghai

【Keywords: Invista】

 

Invista announced on August 8, 2024 the completion of the expansion of its nylon 6,6 polymer production site in Shanghai Chemical Industry Park (SCIP). The project will support the producer in maximizing the value of its integrated nylon 6,6 value chain and meeting demand for high-quality nylon 6,6 products with stable local supply and faster market response to harness the growth potential of downstream applications. 

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20240812/c2db8fccc1c44414a315cb7ba442d83c.html

 

2. World's Most Environmentally-friendly Ro-Ro Ship Embarks on Maiden Voyage

【Keywords: Ro-Ro Ship】

 

The world’s largest and most environmentally-friendly Ro-Ro (Roll-on/Roll-off) ship, Norwegian Höegh Aurora, set out for its maiden voyage from Shanghai’s Nangang Port on August 9, 2024. After LNG refueling at the port, the ship headed to Japan. 

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20240813/16e7da1d4f7c46fb977f118d81614df7.html

 

Q&A

1: The head of the Competition Coordination Department of the State Administration for Market Regulation (SAMR) answered press questions at a press conference held by the State Council Information Office. The Resolution of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform to Advance Chinese Modernization (the Resolution) adopted by the Third Plenary Session of the 20th CPC Central Committee pointed out that it is necessary to strengthen the constraints of fair competition review and efforts against monopoly and unfair competition. What work has been done by the SAMR in this regard?

 

A1:Fair competition is the core of the market economy and an important guarantee for high-quality development. In recent years, focusing on the primary task of high-quality development, the SAMR has been continuously regulating market competition, and effectively maintaining a fair and competitive market order. Our efforts have been devoted to the three areas as follows:

The first is to deepen antitrust supervision and law enforcement in key areas. Over the past two years, we have carried out special antitrust law enforcement actions in the fields concerning people's wellbeing, and strengthened scrutiny and law enforcement in the fields of medicine, building materials, automobiles, public utilities and other livelihood areas. Since 2022, we have handled 60 cases of monopoly agreements and abuse of dominant market positions, confiscating more than 2.5 billion yuan, and promoting the steady improvement of market competition. In the meantime, we have deepened anti-monopoly supervision in the digital economy and other fields, and unconditionally approved 48 cases of concentration reporting by platform business operators. We have given full play to the warning and demonstration role of major cases, encouraged operators to sign the industry's self-discipline convention, reminded them of monopoly risks, and guided the companies involved in the cases to make compliance rectifications, and promoted the continuous optimization of industry order.

The second is to conduct antitrust review of concentration of operators. Since 2022, we have concluded more than 1,900 cases of concentration of operators, approved 10 cases of concentration of operators, including the acquisition of Tobishi by Simcere Pharmaceutical and the acquisition of Yantai Juli by Wanhua Chemical, with additional restrictive conditions, and lifted the restrictive conditions in cases such as Marubeni's acquisition of 100% equity of Gavilon Holdings, thus stimulating M&A activities and corporate investment. At the same time, we have introduced a review mechanism to separate simple and non-simple cases. We have entrusted market supervision departments of five provinces including Beijing to conduct antitrust reviews of some simple cases related to concentration of operators, and launched business systems to improve the quality and efficiency of case review.

The third is to support and guide operators in strengthening anti-monopoly compliance. In April 2024, the Anti-monopoly and Anti-unfair Competition Commission of the State Council revised the Anti-monopoly Compliance Guidelines for Business Operators, detailing the key points of compliance risks of monopoly behaviors and establishing a compliance incentive system. In addition, we have also released the Anti-monopoly Compliance Guidelines for Concentration of Operators and held a series of antitrust compliance lectures to support and guide operators to strengthen compliance management. At present, we are accelerating the formulation of the national standard – the Regulations on Compliance Management for Fair Competition Among Business Operators - to promote the formation of a multi-party governance pattern with active compliance by enterprises, effective guidance by the government, and broad support from the society.

In the next stage, the SAMR will continue to strengthen and optimize anti-monopoly supervision and law enforcement, maintain market order and make up for market failures, stimulate the endogenous motivation and innovative vitality of the whole society through fair competition, and promote high-quality development with greater results.

 

Source: State Council Information Office 

http://www.scio.gov.cn/live/2024/34450/tw/

 

Expert Perspective

Impact of New Cross-border Data Regulations on Domestic and Overseas Investment Projects

By: Fu Peng, Yu Qin, Wei Longjie (Haiwen & Partners)

 

[Continuing from the Last Issue]

(III) Impact of the new regulations on the key points of cross-border due diligence verification of data in investment and M&A projects

In investment and M&A projects, the key points of data compliance due diligence in cross-border data transfer need to be updated in accordance with the requirements of the new regulations.

For example, before the new regulations were issued, investors often paid attention to whether the target company itself was a processor that processed (rather than transmitted overseas) the personal information of more than one million people. After the new regulations were issued, the volume of personal information processed by the target company is no longer a key point for verification in the cross-border data field (of course, it may still be subject to scrutiny in other data compliance areas, such as network platform operators who hold the personal information of more than one million users must apply for cybersecurity review when it seeks listing in a foreign stock market).

In contrast, the registered address of the target company should attract the attention of the project participants. If the target company is registered in a pilot free trade zone, and the free trade zone has formulated a negative list for cross-border data transfer, it should refer to the detailed compliance requirements proposed in the negative list. We also summarize changes in the due diligence verification dimensions in the field of cross-border data before and after the release of the new regulations:

 [To Be Continued]