Issue 60

Shanghai Weekly Bulletin

No.1,September 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 Issues Guidelines to Promote Trade in Services

【Keywords: Trade in Services】

 

The General Office of the State Council released on August 28, 2024 the Guidelines on Promoting the High-quality Development of Trade in Services with High-standard Opening-up. The document introduces 20 specific measures in five aspects, including promoting institutional opening-up of trade in services, facilitating cross-border flow of factors of production, advancing innovation-driven development of key areas, expanding the international market, and improving the supporting policies and measures. 

 

Source: Website of the Chinese Government

 

2. China Improves the Policy for Downtown Duty-Free Shops

【Keywords: Duty-free Shops】

 

The Ministry of Finance (MOF), together with other four Chinese government departments, recently issued the Circular on Improving the Policy for Downtown Duty-Free Shops, which is scheduled to take effect on October 1, 2024. The Interim Measures for the Administration of Downtown Duty-free Shops will be applicable to six downtown duty-free shops in cities like Beijing and Shanghai from the effective date of the Circular, and 13 foreign exchange duty-free shops in Beijing, Shanghai and other cities will be transformed into downtown duty-free shops within three months from the effective date, according to the Circular. 

 

Source:MOF

 

3. China Enhances Financial Support for Yangtze River Economic Belt’s Green Development

【Keywords: Yangtze River Economic Belt; Green and Low-carbon Development】

 

Eight Chinese government departments including the People's Bank of China (PBC) issued on August 25, 2024 the Guidelines on Enhancing Financial Support for the Green, Low-carbon and High-quality Development of the Yangtze River Economic Belt. The document outlines 16 major tasks in four aspects, including developing green finance, promoting green finance development in coordination with tech finance and digital finance, promoting green finance development in coordination with inclusive finance and pension finance, and conducting assessment, prevention and control of financial risks effectively. 

 

Source:PBC

http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/5441073/index.html

 

【Shanghai】

 

1.  Shanghai Revises Regulations to Consolidate Its Role as a Global Financial Hub

【Keyword:International Financial Center】

 

The Standing Committee of Shanghai Municipal People’s Congress recently released the revised Regulations on Promoting the Advancement of Shanghai into an International Financial Center. The document calls on Shanghai to strengthen the development of a modern financial system, promote high-standard financial opening up, and boost the high-quality financial development. It is scheduled to take effect on October 1, 2024.

 

Source:  International Services Shanghai

https://english.shanghai.gov.cn/en-PolicyInsights/20240827/5c0c1d4a00384567a93f18d9b86e576a.html

 

2. Shanghai Issues New Rules to Adjust Housing Supply Standards

【Keywords: Real Estate】

 

Shanghai Municipal Commission of Housing and Urban-Rural Development and other two municipal departments in the city recently released the Circular on Optimizing the Supply Structure of Commercial Housing Units on Newly Granted Land, which adjusts the standard gross floor area of flats in small and medium-sized apartment categories, as well as the proportions of both categories. The document also strengthens regional coordination in the apartment categories of housing supply. 

 

Source:Shanghai Municipal Bureau of Planning and Natural Resources

 

3. Shanghai Extends Policy Support for Lingang Special Area

【Keywords: Lingang Special Area】

 

Shanghai recently reviewed and approved the Guidelines on Supporting the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone in Deepening High-standard Reform and Opening-up and Driving High-quality Development. The document proposes 16 policy measures in five aspects, including gathering and utilizing global high-end and new production factors and resources, building a full-chain and full-process sci-tech innovation system, laying out key industries with international market competitiveness, expanding the carrying space for high-standard opening-up, and improving the guarantee mechanism.

 

Source:Shanghai International Center for Promoting Technology Import and Export

 

4. Shanghai Issues Draft Rules for the Supply of Medicines and Medical Devices for International Ships 

【Keywords: International Ships; Supply of Medicines and Medical Devices】

 

The Standing Committee of the People's Congress of Pudong New Area announced on August 27, 2024 its invitation of public opinions on the Provisions on the Supply of Medicines and Medical Devices for International Ships in Pudong New Area (Draft). The deadline for feedback is September 10. The draft document responds to the basic demands of crew members for life, health and safety, and is conducive to the creation of a safe and stable shipping environment.

 

Source:Pudong Commission of Commerce

 

One Week in Shanghai

 

【Latest News】

 

1. Fingerprint Collection Requirement Waived for All Short-term Visa Applicants

【Keywords:Short-term Visa; Fingerprint】

 

Starting from September 2, 2024 and until December 31, 2025, short-term visa applicants seeking single or double entry visas for stays not exceeding 180 days at Chinese embassies and consulates abroad will be waived from the fingerprint collection requirement, according to an announcement. The decision aims to enhance the convenience for travelers planning short visits to China. 

 

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

 

【Forum & Exhibition】

 

1. Auto Shanghai 2025 to Be Held in April 

【Keywords:  International Automobile Industry Exhibition】

 

The 21st Shanghai International Automobile Industry Exhibition (Auto Shanghai 2025) will be held from April 25 to May 2, 2025 at the National Exhibition and Convention Center. The 2025 Global Automotive Leaders Closed-door Summit will be held on April 22, 2025. With the theme “Embracing Innovation, Empowering the Future”, the exhibition space is estimated to reach 360, 000 square meters. 

 

Source:Official WeChat Account of Shanghai International Automobile Industry Exhibition

 

2. Inclusion·Conference on the Bund 2024 to Kick off This Week 

【Keywords: Inclusion·Conference on the Bund】

 

The Inclusion·Conference on the Bund 2024 will be held on September 5-7 at the Huangpu World Expo Park. The conference features a series of exciting activities, including an opening forum, 36 open Insights Forums, more than 10 Creator Stages, two AI innovation competitions, an exhibition of 10,000 square meters, the Green Marketplace, and a job fair for tech talents.

 

Source:Inclusion·Conference on the Bund

 

3. WDCC 2024 to Be Held in Late September

【Keywords: World Design Cities Conference】

The World Design Cities Conference 2024 (WDCC 2024) is scheduled to take place at the Shanghai Expo’s Urban Best Practices Area from September 27-30. With the theme "Design Reframing Growth", the conference will feature an opening ceremony, exhibitions at both the main venue and overseas, three key summit forums, thematic sessions focusing on four industries and five areas of design, X citywide events, as well as events featuring collaboration with foreign participants. 

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Events/20240829/b7099278a2fb46b983cde48405abb255.html

 

4. Five Exhibitions of Smart Life open in September

【Keywords: Smart Life】

Five smart exhibitions, namely Shanghai Intelligent Building Technology (SIBT), Shanghai Smart Home Technology (SSHT), Shanghai Smart Office Technology (SSOT), Parking China (PKC), and China Facility Management (CFM), are set to be held at the Shanghai New International Expo Center with the theme “Smart Space, Smart Life” from September 3 to 5, 2024.

 

Source:Shanghai Convention and Exhibition Promotion

 

【Culture & Art】

 

1. 15th ACT Shanghai Contemporary Theater Festival to Kick off

【Keywords:  Contemporary Theater Festival】

The 15th ACT Shanghai Contemporary Theater Festival will be held from September 6 to October 13, 2024. This year's festival is themed on "the Fields of Memory" and features nine performances and activities, covering drama, mime, experimental performance and dance theater. Most of them are new works produced by performance groups currently active on the international stage, with three debuted in the Chinese mainland, and two in Asia.

 

Source:Shanghai Tourism

 

2. Shanghai Center of Chinese Operas Unveils National Day Performance Season

【Keywords: Chinese Opera】

Shanghai Center of Chinese Operas recently integrated resources of its affiliated troupes and theaters, and launched the 2024 National Day Performance Season. During the week-long holiday, six opera troupes will present a total of 40 performances.

 

Source:Shanghai Tourism

 

【Corporate Activities】

 

1.Avantor Life Sciences (China) Moves Headquarters to the New Bund

【Keywords: Avantor】

 

Avantor Life Sciences (China) recently moved its headquarters to the Shun Tak Center, the New Bund. This marks a new milestone for the company. Avantor will integrate China's high-quality resources under its global quality system to provide the best products and solutions for life sciences from scientific research to industrialization, and it is committed to becoming the most trusted global partner for Chinese customers.

 

Source:Pudong Release

 

2. Lubrizol Unveils Beauty Research Center in Pudong

【Keywords:  Lubrizol】

 

Lubrizol Corporation, a global leader in specialty chemicals, announced the opening of its Beauty Research Center in Pudong, Shanghai on August 28, 2024. As Lubrizol's second beauty research center in the world and the first in Asia, it will serve as the company's strategic facility to strengthen Lubrizol's decision-making capabilities worldwide, achieve continuous innovation, and accelerate the commercialization of differentiated personal care and beauty solutions.

 

Source:Pudong Release

 

Q&A

 

1: The head of the Shanghai Municipal Party Committee's Financial Office answered questions at a press conference on the Lingang Special Area's five-year development achievements and the overall considerations for the next step - What is the positioning of the Lingang Special Area in the establishment of Shanghai into an International Financial Center? What new measures will be introduced in the Lingang Special Area to support the development of key areas such as reinsurance, technology finance, offshore and cross-border finance?

 

A1:Since its establishment, Lingang Special Area has been developing in tandem with the Shanghai International Financial Center. With the support and guidance of relevant national departments, the pilot program of financial opening-up and innovation in Lingang has been further advanced, and a number of pioneering reforms and opening-up measures have been rolled out in the past five years.

Firstly, high-level institutional opening-up of the financial industry has been expanded. Shanghai was the first to cancel the RMB special deposit account for foreign direct investment, and introduced a number of first-of-its-kind services such as the local and foreign currency integrated fund pool and the cross-border RMB financing lease of made-in-China aircraft. Shanghai also released China's first general data list for cross-border scenarios in the field of public funds, and completed the first cross-border digital RMB settlement of international crude oil transaction.

Secondly, high-level financial resources are gathering at an accelerated pace in Shanghai. The first foreign-funded joint venture wealth management company, the first foreign wholly-owned financial technology company, the first insurance private equity fund, and a number of landmark projects have been settled in the city, with a total of 98 licensed financial institutions. Shanghai is home to an international reinsurance registration and trading center, 15 reinsurance operation centers and three insurance brokerage companies.

Thirdly, Shanghai will leverage financial services to support high-quality economic development. We will build a "hundred-billion-level" industrial fund cluster and leverage RMB 350 billion of private capital. We will implement the "Science and Technology Innovation Financial Partner Program" and set up a RMB 20 billion Lingang Science and Technology Innovation Fund. We will establish an integrated circuit co-insurance alliance and provide a total of RMB 2.65 trillion in insurance protections. We will pilot employee shareholding loans for technology companies, and 15 pilot companies have agreed to participate in the pilot project. We will introduce support policies for exchange rate risk neutrality management.

Looking ahead, Lingang will continue to leverage the institutional advantages of a special economic zone, serve as a testing ground and stress testing area for financial reform, opening up and innovation, and accelerate the construction of Shanghai into an international financial center.

In order to support the Lingang Special Area in deepening high-level financial opening-up and reform, the Municipal Party Committee's Financial Office joined hands with the Lingang Special Area and financial regulators in Shanghai to issue the Implementation Plan for Further Accelerating the High-level Opening-up and High-Quality Development of the Financial Industry in the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone. The plan proposed 50 policy measures to advance high-level opening-up in Lingang. For example: in terms of building an international reinsurance functional zone, we have stepped up enforcement of the Implementation Opinions on Accelerating the Construction of Shanghai International Reinsurance Center jointly issued by the National Financial Regulatory Administration and Shanghai municipal government, and the Several Measures for Supporting the Development of an International Reinsurance Functional Zone in the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone, further promote the gathering of reinsurance markets, institutions, businesses, talents and data in Lingang, and create an reinsurance functional zone that is in line with international standards. In terms of improving the quality and efficiency of technology-based financial services, we will promote innovation in credit, insurance and equity investment, deepen the pilot program of employee shareholding loans for science and technology enterprises, and innovate credit products and service models; continue to play the role of integrated circuit co-insurance alliance, and bring the experience to cutting-edge industries such as aerospace and biomedicine; guide and drive more long-term capital to invest in Lingang, and develop financial products that match the development cycle, risk characteristics, and capital needs of tech enterprises. In terms of developing cross-border finance and offshore finance, we will give full play to the regulatory functions of the Pudong New Area and support legislative explorations in related fields; encourage financial institutions to build business platforms such as cross-border finance and offshore financial centers, promote innovative development of non-resident M&A loan business, focus on application scenarios such as reinsurance to study cross-border data lists, and deepen the pilot program of high-level opening up of cross-border trade and investment.

 

Source:  Shanghai Release

 

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]

IV Impact of the new regulations on overseas investment projects of Chinese enterprises

(1)Cross-border data layout is more flexible 

When Chinese companies explore overseas markets, due to the needs of business management and human resources management, a considerable amount of personal information of domestic employees, partners, and business contacts needs to be transmitted overseas. Typical examples include employee overseas assignments, and the sharing of information between domestic and overseas suppliers and partners.

Before the new regulations were published, the compliance obligations for cross-border transmission of personal information were a relatively heavy burden for Chinese companies. With the issuance of the new regulations, when Chinese companies go overseas, they can consider seeking the exemption of contract filing (provided that there is no sensitive personal information) for the outbound transfer of employee personal information if they do not meet the requirement of "providing more than 100,000 pieces of personal information to overseas countries from January 1 of the current year" (provided that there is no sensitive personal information), or consider applying the exemption provision that is necessary for the performance of human resources management.

It is important to note that for special industries such as automobiles, medical care, and finance, given that their industries may involve the processing of a large amount of sensitive personal information, if Chinese companies are involved in the outbound transfer of personal information that is not exempted, they should promptly make cross-border data compliance declarations in accordance with the requirements of the new regulations, or de-identify or anonymize the information to be transferred abroad.

 [To Be Continued]