Issue 80

Shanghai Weekly Bulletin

No.4,January 2025

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 Documents to Regulate Development and Utilization of Public Data Resources

【Keyword: Public Data Resources】

 

The National Development and Reform Commission (NDRC) and the National Data Administration (NDA) recently issued the Interim Measures for the Registration and Management of Public Data Resources, the Rules for Authorized Operation of Public Data Resources (Trial), and the Notice on Establishing a Price Formation Mechanism for Authorized Operation of Public Data Resources, in an effort to promote the circulation and usage of public data resources in a compliant and efficient manner. All the three documents will take effect on March 1, 2025.

 

Source: NDRC,

Interim Measures, 

https://www.ndrc.gov.cn/xxgk/zcfb/ghxwj/202501/t20250116_1395725.html

the Rules, 

https://www.ndrc.gov.cn/xxgk/zcfb/ghxwj/202501/t20250116_1395726.html

the Notice

https://www.ndrc.gov.cn/xxgk/zcfb/tz/202501/t20250120_1395799.html

 

2. China Encourages Medium- and Long-term Funds into the Capital Market

【Keywords: Medium- and Long-term Funds; Inflows】

 

The office of the Central Financial Work Commission and other five government departments recently jointly released the Action Plan on Promoting Inflows of Medium- and Long-term Funds into the Capital Market. The document outlines measures in five aspects, including increasing the proportion and stability of A-share investment in the portfolios of commercial insurance companies, optimizing the investment management mechanisms for the national social security fund and basic pension funds, improving the market-oriented operation of enterprise (occupational) annuity funds, expanding the scale and proportion of equity funds, and refining the capital market investment ecosystem. 

 

Source: China Security Regulatory Commission 

http://www.csrc.gov.cn/csrc/c100028/c7535174/content.shtml

 

【Shanghai】

 

1. Shanghai Offers Special Visa Facilitation to Foreign Business People

【Keywords: Foreign Business People; Visa】

 

The Foreign Affairs Office of the Shanghai Municipal People’s Government released on January 21 the Notice on Special Visa Facilitation for Foreign Business People to Shanghai. Eligible foreign business people may apply to the Chinese embassy or a consulate in their home countries for a five-year multiple-entry M visa or an equivalent category visa with a 180-day stay, upon receiving a Special Visa Invitation Letter issued by the Shanghai Municipal Foreign Affairs Office, according to the document, which also clarifies that applicants may be exempted from fingerprint collection and may entrust others to apply for the visa, and will only be charged the fee for a one-year multiple-entry visa.

 

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

 

2. Shanghai Aims for High-quality Development of Digital Trade and Trade in Services

【Keywords: Digital Trade; Trade in Services】

 

The General Office of the Shanghai Municipal People’s Government recently released the Action Plan of Shanghai on Promoting the High-quality Development of Digital Trade and Trade in Services. The document outlines 23 tasks across six areas, aiming to achieve a services trade volume of US$260 billion by 2029, with US$130 billion from trade in digitally deliverable services, constituting approximately 50 percent of the total.

 

Source:Shanghai Municipal People’s Government

https://www.shanghai.gov.cn/nw12344/20250116/7fad5bb1443d4c2bb92d081d8727ce9e.html

 

3. Shanghai Vows to Further Improve Electricity Access Business Environment 

【Keywords: Electricity Access; Business Environment】

 

The Shanghai Municipal Development and Reform Commission and other six municipal authorities recently revised the Shanghai Implementation Measures on Further Improving the Business Environment for Electricity Access. The revised document calls for further increasing efficiency and transparency, improving industry administration, and enhancing user satisfaction and sense of gain. The document took effect on December 31, 2024 and will remain valid until December 30, 2029. 

 

Source: Shanghai Municipal Development and Reform Commission

https://fgw.sh.gov.cn/fgw_gfxwj/20250116/09e946cb04314756989dcaffda9d41c1.html

 

One Week in Shanghai

 

【Latest News】

 

1. Silk Road E-commerce Carnival for Spring Festival Launched in Shanghai

【Keyword: Silk Road E-commerce】

 

The Ministry of Commerce launched the inaugural Silk Road E-commerce Carnival for Spring Festival in Shanghai on January 22, 2025. The event combines traditional cultural elements for the Spring Festival such as customs, tastes, and goods, integrates online and offline shopping, and links Chinese and foreign markets. Focusing on three themes including Traveling in China, Sales of Chinese New Year Goods Abroad, and Purchase of Chinese New Year Goods from Silk Road Countries and Regions, it will feature 20 online and offline promotion activities to boost festive consumption. 

 

Source:International Services Shanghai 

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20250123/f3d77449ea524f3ca6ce89f8ef003f35.html

 

2. Shanghai Airport Launches No-appointment Access to "Easy Security Check"

【Keywords: Shanghai Airport; Easy Security Check】

 

Shanghai Airport launched on January 22 the upgraded "Easy Security Check" service. Passengers on domestic flights can use the easy security check channels at Pudong and Hongqiao airports for security inspections without having to make an appointment in advance. The upgraded service will make air travel more convenient, efficient and comfortable.

 

Source: Shanghai Airport Group

 

3. Pudong ESG Alliance Holds Meeting on Sustainable Development of Chinese and Foreign Enterprises 

【Keywords: Pudong; ESG Alliance】

 

The Pudong Sustainable Development (ESG) Alliance recently held its first co-chairs meeting. It discusses the roadmap for Pudong to build an ESG ecosystem for headquarters enterprises, which have brought international leading ESG management practices and experience to the Area, driving local companies on their industrial chains to enhance ESG competitiveness.

 

Source：Pudong Release

 

【Culture & Art】

 

1. Theme Exhibition of Tang Dynasty’s History and Culture Opens 

【Keyword: Zhen Guan Jian】

Zhen Guan Jian – A Theme Exhibition of Tang Dynasty’s History and Culture opened at Minhang Museum on January 23, 2025. The exhibition brings together 132 pieces (sets) of precious cultural relics from 13 cultural and museum institutions across the country, spanning three dynasties from the Northern Zhou to the middle and late Tang.

 

Source: Minhang Today

 

2. Liang Sicheng and Lin Huiyin Academic Literature Exhibition Opens in Shanghai

【Keywords: Liang Sicheng; Lin Huiyin】

An exhibition titled the Liang–A Documenta of Liang Sicheng and Lin Huiyin opened at the Q-CAN Art Museum on January 23, 2025, and it will last until April 18. The exhibition brings together some 400 exhibits (sets), including manuscripts, drawings, sketches, surveying and mapping drafts, typescripts, archives, certificates, early publications, images, recordings and other document forms, presenting the academic careers of the two architectural masters Liang Sicheng and Lin Huiyin. 

 

Source: Shanghai Hongkou

 

3. Exhibition of Fan Paintings from Wuhan Museum Opens 

【Keywords: Wuhan Museum; Fan Paintings】

An exhibition of fan paintings from Wuhan Museum has opened at the Pudong History Museum, and it will last until March 2, 2025. The exhibition presents more than 60 fan paintings and fans from the Ming and Qing Dynasties to the Republic of China era from the Wuhan Museum and Pudong History Museum. Among them are paintings and calligraphy works from the Ming and Qing Dynasties, as well as fine fan works from the Republic of China.

 

Source: Pudong History Museum

 

【Corporate Activities】

 

1.Renault Establishes R&D Center in Shanghai to Develop EVs for European Market

【Keyword: Renault】

 

French automaker Renault Group has established an R&D center in Shanghai with approximately 150 employees. The center will focus on developing electric vehicles (EVs) specifically for the European market, including the next-generation all-electric Twingo E-Tech. The center includes dedicated teams for engineering, procurement and cost accounting. It will conduct market analysis, build supplier network, and develop vehicles and systems in China, contributing to accelerating Renault Group’s product development process. 

 

Source: International Services Shanghai

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20250120/dc35a25666394c54b0bfed6f08eebeb6.html

 

2. Synthomer Opens New China Innovation Center in Shanghai

【Keyword: Synthomer】

 

Synthomer, a world-leading supplier of high-performance, highly specialized chemical products and solutions, recently held a ceremony for the opening of its China Innovation Center at the Shanghai International Chemical New Materials Innovation Center (SCIP). Covering an area of over 2,000 square meters and integrating advanced offices, laboratories, collaborative workspaces and achievement exhibition halls, the facility aims to support the growth of all Synthomer’s business units in the Chinese market. 

 

Source: Synthomer

 

Q&A

 

Q1:Officials with the Shanghai Municipal Commission of Commerce answered questions at a press conference about economic operations held by the Shanghai Municipal People's Government Information Office - As a city with a strong outward-oriented economy, What achievements did Shanghai make in foreign investment and foreign trade in the past year?

 

A1: As a window of openness to the outside world, Shanghai is an outward-oriented economy. There are more than 75,000 foreign-funded enterprises doing business in Shanghai, and they account for about a quarter of the city's GDP and about 60 percent of the total value of imports and exports. Last year, we unveiled a series of policies to drive growth in foreign trade and investment, producing positive results.

In terms of foreign trade, we were making every effort to maintain stable trade growth, enhance growth quality and strengthen Shanghai's position as a trade hub. Our foreign trade has shown strong resilience. The total value of imports and exports reached 4.27 trillion yuan in 2024, a year-on-year increase of 1.3 percent, and the figure has been rising for nine consecutive years to a new record. Among them, exports grew 4.6 percent last year. The number of trading partners has exceeded 200, and Shanghai's trade with Belt and Road countries has increased 4.8 percent from a year ago. The trade structure has been further optimized. General imports and exports accounted for nearly 60 percent of the total trade value, mechanical and electronic products accounted for more than 50 percent, and high-tech product exports accounted for nearly a third. A bright spot was the rapid growth in exports of ships and storage components, and both grew about 60 percent. Besides, new trade forms and models are thriving. The pilot project of airport collection and transportation of sensitive goods for cross-border e-commerce has driven cross-border e-commerce shipments at Shanghai's two airports to grow nearly 30 percent. The international transshipment and LCL shipping model has been optimized. Shanghai has taken advantage of the special policies for the Yangshan Special Comprehensive Bonded Zone to reduce the overall transshipment and LCL shipping time by nearly 50 percent. Shanghai has established China's first comprehensive service platform for used-car exports in the port area, which has greatly optimized the used-car export process, improved efficiency, and driven the growth of used-car exports by more than 20 percent. Green trade has expanded, and the import catalog of remanufactured products in Shanghai has increased to 24 items. The number of bonded maintenance projects has reached 28. New progress has also been made in trade liberalization and facilitation. The number of pilot enterprises utilizing free trade accounts for offshore trade has reached 636, and the stamp duty exemption for offshore trade has been implemented. In addition, the freight volume of the China-Europe Railway Express (Shanghai) increased by 20 percent last year.

In terms of foreign investment, we are accelerating the pace of introducing high-standard foreign investment. Shanghai has always been the first choice for foreign investors doing business in China, with paid-in capital exceeding US$360 billion and more than 75,000 foreign-funded enterprises. Besides, some 6,000 foreign-funded companies were set up last year. Among the 57 countries and regions where foreign investment came from, we reported significant growth on investment from France, Sweden, Italy, and Australia. High-tech manufacturing now accounts for three-quarters of foreign investment in the manufacturing sector. Last year, the total number of regional headquarters of multinational companies in Shanghai reached 1,016. 213 were high-level headquarters serving the Greater China region or beyond, and 66 were headquarters established by Fortune 500 companies. A total of 591 foreign-funded R&D centers have been set up in Shanghai, and R&D spending at foreign-funded headquarters and R&D centers account for 34 percent of all foreign-funded enterprises in Shanghai. These headquarters held 270 business events in Shanghai in 2024, such as global board meetings, international seminars, and investor conferences. Cooperation between foreign-funded enterprises and Chinese companies has been strengthened, and some of them joined hands to explore third-party markets. There have been some successful cases. We have also taken swift actions to make it easier for foreign companies to do business in Shanghai. Municipal and district government agencies held 130 roundtable meetings with enterprises in 2024, and about 94 percent of problems raised by foreign companies at roundtable meetings have been properly addressed. Governments at both municipal and district levels have implemented "service packages" for key foreign enterprises, established direct communication channels for regional headquarters, and assigned dedicated service specialists. These measures have improved the operating environment and bolstered investor confidence. 

Next, we would stick to the arrangements of the Government Work Report, make persistent efforts to expand institutional opening-up, push for the transformation and upgrade of foreign-invested enterprises, and develop new trade formats and models, so as to drive stable and high-quality growth of Shanghai's foreign investment and foreign trade.

 

Source:Shanghai Release

 

Expert Perspective

 

A New Guide to Data Compliance of Multinational Banks and Financial Institutions: Interpretation of the Regulations on Network Data Security Management

 

By Zhou Liang, Zhou Jianing (Beijing Dacheng Law Firm)

 

[Continuing from the Last Issue]

II. The Regulations have refined the rules for processing personal information and strengthened compliance and oversight 

As an administrative regulation issued by the State Council, the Regulations on Network Data Security Management further details rules for processing personal information and strengthens compliance and oversight requirements based on superior laws such as the Personal Information Protection Law.

1. The Regulations specifies the form of notification of personal information processing rules

According to Article 21 of the Regulations, network data processors are required to "publicly display in a concentrated manner" their personal information processing rules in an "easily accessible" and "conspicuous" location, and the content must be easy to understand and specific. When notifying, collecting and providing other network data processors with the purpose, method, type and network data recipient of personal information, it should be listed in a clear "list" or other form. 

A significant number of financial institutions inform individuals about the processing of their personal information through personal information processing rules. However, the authors found that some institutions choose to put the personal information processing rules in inconspicuous sections of their official websites, to which users have no quick access. The Regulations requires network data providers to make corresponding adjustments in a timely manner, inform personal data providers of processing rules in a clear and concise manner, and simplify the language.

2. The Regulations puts forward new requirements for processing personal information based on individual consent

Article 22 of the Regulations refines the requirements for processing personal information based on individual consent. The Regulations stipulates that network information processors that need to obtain individual consent to provide products or services should not only comply with the principle provisions and obtain voluntary and clear consent from individuals on the premise of full knowledge, but also have to be aware that the scope of information collection should be strictly limited to what is necessary to provide products or services. Individual consent shall not be obtained through misleading, fraud, coercion, etc. If an individual has explicitly expressed his or her disagreement with the processing of personal information, the information processor shall not frequently seek his or her consent. Occasionally, the following situation happens in real life: in order to obtain users’ consent and get their personal information, a few financial institutions may have an eye-catching "Consent" button on the web page, while the “Decline” button is less conspicuous. After the users choose to "Decline", they are still seduced to choose "Consent" through coercive and inductive words, and pop-up windows are frequently displayed. This kind of consent obtained against the user's true will is so-called "forced consent". If institutions find relevant situations during routine self-inspections, they must make rectifications immediately.

[To be Continued]