Issue 87

Shanghai Weekly Bulletin

No.4,March 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. The Regulations of the State Council on the Handling of Foreign-related Intellectual Property Disputes Released

【Keywords: Foreign-related, Intellectual property】

 

In order to strengthen intellectual property protection, promote citizens and organizations to handle foreign-related intellectual property disputes in accordance with the law, safeguard the legitimate rights and interests of citizens and organizations, promote high-standard opening up to the outside world, and advance high-quality economic development, the Regulations of the State Council on the Handling of Foreign-related Intellectual Property Disputes was recently released. The Regulations, consisting of 18 articles, will take effect on May 1, 2025.

 

Source: Chinese Government Website

https://www.gov.cn/zhengce/content/202503/content_7014486.htm

 

2. The Implementation Measures for the Regulations on Fair Competition Review Released

【Keywords: Fair competition】

 

Recently, the State Administration for Market Regulation released the Implementation Measures for the Regulations on Fair Competition Review. The Implementation Measures consists of 48 articles in five chapters, clarifying the scope of application and departmental responsibilities of fair competition review, refining fair competition review standards, improving the fair competition review mechanism, and improving the fair competition review supervision and security channels. The Implementation Measures will take effect on April 20, 2025.

 

Source: State Administration for Market Regulation

https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fgs/art/2025/art_2084c3ba225943c2a670d27e85fb00be.html

 

3. Four Authorities Issue the Measures for Labeling AI Generated or Composed Content

【Keywords: AI, Labeling】

 

Recently, the Cyberspace Administration of China (CAC) and other three authorities jointly issued the Measures for Labeling AI Generated or Composed Content, which will come into effect on September 1, 2025. The Measures contain 14 articles, specifying that the labeling of AI generated or composed content includes explicit labeling and implicit labeling.

 

Source: CAC

https://www.cac.gov.cn/2025-03/14/c_1743654684782215.htm

 

4.The State Taxation Administration Issues the Administrative Measures for Tax-related Professional Services (Trial)

【Keywords: Tax-related, Professional services】

 

The Administrative Measures for Tax-related Professional Services (Trial) was released On March 17 and will come into effect on May 1, 2025. The Measures mainly cover management scope, management and services, supervision and inspection, handling and punishment.

 

Source: State Taxation Administration

https://fgk.chinatax.gov.cn/zcfgk/c100011/c5239044/content.html

 

【Shanghai】

 

1. The Administrative Measures of Shanghai on Carbon Emission Released

【Keywords: Carbon emission】

 

Recently, the Administrative Measures of Shanghai on Carbon Emission were released, which will come into effect on April 1, 2025. The Administrative Measures, consisting of 48 articles in seven chapters, apply to the city’s local carbon emission quota management, voluntary greenhouse gas emission reduction and related trading activities and their supervision and management. Carbon emission rights trading included in the national carbon emission rights trading market, voluntary greenhouse gas emission reduction trading included in the national greenhouse gas voluntary emission reduction trading market, and supervision and management of related activities shall be subject to relevant regulations of the State.

 

Source: Shanghai Municipal People’s Government

https://www.shanghai.gov.cn/nw12344/20250314/d7f358a1242d4b7e91884fed6a967d3b.html

 

2.Shanghai Issues Several Measures to Promote Innovative Development of Service Industry

【Keywords: Service industry】

 

Recently, the General Office of Shanghai Municipal People’s Government issued the Several Measures of Shanghai to Promote Innovative Development of Service Industry. The document proposes 31 specific measures from four aspects, namely, strengthening the role of service economy as the main engine, cultivating new momentum for service industry development, activating consumption to promote quality improvement and expansion of service industry, and creating a high-quality ecology for service industry development. It has taken effect since March 20, 2025 and will be valid until March 19, 2028.

 

Source:Shanghai Municipal People’s Government

https://www.shanghai.gov.cn/nw12344/20250317/3dccc365fabc4c0bb962cfdb16652f87.html

 

3.Shanghai Customs Releases Measures to Streamline Customs Inspection for Imported Consumer Goods Intended for Debut Activities

【Keywords: Debut, Imported consumer goods】

 

On March 16, the 2025 National Premium Products Debut Season and “First in Shanghai” Event Series kicked off. At the launch ceremony, measures to streamline customs inspection for imported consumer goods intended for debut activities were officially released. The Shanghai Customs will release the whitelist for debut economy jointly with the Shanghai Municipal Commission of Commerce, to promote a differentiated inspection and rapid customs clearance model.

 

Source: Shanghai Customs 12360 hotline

 

One Week in Shanghai

 

【Latest News】

 

1. The 2025 National Premium Products Debut Season and “First in Shanghai” Event Series Kick off

【Keywords: First in Shanghai】

 

Recently, the Launch Ceremony of the 2025 National Premium Products Debut Season and “First in Shanghai” Event Series were held in Zhangyuan Garden, Jing’an District, inviting tourists from all over the world to gather in Shanghai, check in the first stores, visit the first exhibitions, and enjoy the first shows, and experience the huge charm of the Chinese and Shanghai consumer markets.

 

Source: Shanghai Release

 

2.Several Newly Established Financial Institutions Opened in Shanghai, and Shanghai Continues to Improve Financial Opening-up to the Outside World 

【Keywords: Financial institutions】

 

On March 19, four newly established financial institutions, namely, BNP Paribas Securities (China) Co., Ltd., Shanghai International Reinsurance Registration and Trading Center Co., Ltd., AXA International Reinsurance (Shanghai) Co., Ltd. Shanghai Reinsurance Operation Center, and Hannover Rück SE Shanghai Branch Shanghai Reinsurance Operation Center, held a centralized opening ceremony in Shanghai.

 

Source: Shanghai Finance

 

3.Shanghai Maritime Court Concludes the First Case to Confirm the Validity of an Ad Hoc Arbitration Agreement 

【Keywords: Ad hoc arbitration】

 

Recently, the Shanghai Maritime Court concluded a case involving a dispute over the application for confirmation of the validity of an ad hoc arbitration agreement. This is the first case to confirm the validity of an ad hoc arbitration agreement accepted by the Shanghai Court since the implementation of the Regulations of Shanghai on Promoting the Development of the International Commercial Arbitration Center. It is also the first ruling on the determination of foreign-related factors in ad hoc arbitration and whether the constituent elements of an ad hoc arbitration agreement are complete.

 

Source: Pudong Release

 

【Forum & Exhibition】

 

1.2025 Shanghai Global Investment Promotion Conference Set to Kick off

【Keywords: Global Investment Promotion Conference】

The Shanghai Global Investment Promotion Conference & “Invest in Shanghai” Week will be held on March 25. This year’s conference, with the theme “Share Shanghai Opportunities with Global Vision”, will present a series of “1+3+N+X” activities. 1 opening ceremony, with the main venue located at the Shanghai Tower. 3 corporate roundtables, which are added this year, focusing on private enterprises, foreign enterprises, and central SOEs, respectively, to exchange views on topics such as investment in Shanghai, development needs, and policy supply, further sending a positive signal for Shanghai’s high-quality development and high-standard opening-up. N negotiation and matchmaking activities, organizing participating companies to carry out project negotiations, cooperation matchmaking, etc. X theme activities to link up various districts to carry out industry promotion, investment sharing, project roadshows, etc. 

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20250319/0d090347e8874459bc00e901501974ca.html

 

【Competitive Event】

 

1. The First Hero Esports Asian Champions League Launched on the Bund

【Keywords: ACL】

 

On March 19, the Hero Esports Asian Champions League (ACL), Asia’s first international and multi-title esports tournament, held an official launch ceremony on the banks of the Huangpu River, with a total of nine popular esports game titles and competitions unveiled for the inaugural event.

 

Source:Shanghai Huangpu

 

【Culture & Art】

 

1. AW 2025 Shanghai Fashion Week Set to Kick off

【Keywords: Shanghai Fashion Week】

The AW 2025 Shanghai Fashion Week, kicking off on March 25, is the highlight of the “First in Shanghai” Spring Event Series. With the theme “Innovascape”, the fashion week will present nearly 100 new product launches, around 1,000 brand debut showcases, and dozens of inaugural launch events with prominent international collaboration.

 

Source:Shanghai Fashion Week

 

2.The 40th Shanghai Spring International Music Festival Kicks off

【Keywords: Shanghai Spring, International Music Festival】

The 40th Shanghai Spring International Music Festival takes place from March 23 to April 9. This year’s festival, with the theme “Echoes of Spring”, will have 56 main performances, 13 special theme activities and a variety of exhibitions and performances.

 

Source:Shanghai Release

 

【Corporate Activities】

 

1.Shanghai’s First Wholly Foreign-owned Hospital Landed in Hongqiao International Central Business District

【Keywords: DeltaHealth Hospital Shanghai】

 

Recently, the Shanghai Municipal Commission of Health granted an operating license for “wholly foreign-owned” medical practice to DeltaHealth Hospital Shanghai. This marks Shanghai’s first wholly foreign-owned hospital to land in Hongqiao, after the Ministry of Commerce and three other authorities issued a notice last year allowing the establishment of wholly foreign-owned hospitals in Beijing, Tianjin, Shanghai, etc. DeltaHealth Hospital Shanghai has also become China’s first wholly foreign-owned cardiovascular specialty hospital.

 

Source: Shanghai Hongqiao

 

2.New Factory Project of German KROHNE Group Breaks Ground in Songjiang

【Keywords: KROHNE】

 

On March 18, the groundbreaking ceremony for the new factory project of KROHNE Measurement Technology (Shanghai) Co., Ltd. was held in Songjiang Economic and Technological Development Zone. This marks the first renewed investment of German KROHNE Group in Songjiang after over 20 years. The project covers an area of about 64 mu and has a planned total floor area of 25,000 square meters. Expected to be put into production in the second quarter of 2026, the factory will mainly engage in the development, production and manufacturing of electromagnetic flowmeters and related components.

 

Source:Shanghai Songjiang

 

3.HORSE Powertrain Asia Pacific Headquarters Project Officially Launched

【Keywords: HORSE Powertrain】

 

Recently, the HORSE Powertrain Asia Pacific Headquarters Project was officially launched and settled in Songjiang District, Shanghai. HORSE Powertrain Limited will set up its regional management headquarter and a R&D center in Songjiang, along with a global supply chain center, to advance the R&D of core powertrain technologies and supply chain integration.

 

Source: Shanghai Songjiang

 

Q&A

 

Q1:Relevant personnel from the Shanghai Municipal Commission of Commerce answered reporter questions at the press conference held by the Information Office of Shanghai Municipal People’s Government on the overall arrangements and preparations for the Shanghai Global Investment Promotion Conference 2025 — Shanghai is at the forefront of the country in expanding opening-up and utilizing foreign capital. What specific measures will the Shanghai Municipal Commission of Commerce take to carry out foreign investment promotion services and promote high-quality development of foreign investment under the new situation?

 

A: This year, Shanghai’s foreign investment work will mainly focus on implementing the national Action Plan for Stabilizing Foreign Investment. Based on the development and changes in the global economic situation, combined with Shanghai’s actual situation, we will work more precisely and strive for practical results, which are mainly reflected in: precise policy implementation, precise investment promotion, and precise services.

Precise policy implementation: Based on the common concerns of foreign-funded enterprises regarding scattered policies, difficulty in understanding, and complicated applications, the Shanghai Municipal Commission of Commerce has compiled and edited the Foreign Investment Policy Compilation (also known as the Policy Yellow Pages) and translated it into multiple languages, and provided an online version and guidelines to make policies easy to obtain, understand, and apply.

Moreover, this year the Shanghai Municipal Commission of Commerce will put up greater efforts in the opening-up policies most relevant to the business development of foreign-funded enterprises, and strive for more opening-up pilot projects. We will continue to make good use of the 2.0 version of the “80 Measures” of the Overall Program for Comprehensively Keeping Pace with the High-Standard International Trade Rules and Implementing a High-Level Institutionalized Opening-up Policy in the China (Shanghai) Pilot Free Trade Zone, deepen the comprehensive pilot of expanding the opening-up of the service industry, implement the latest opening-up measures in biotechnology, wholly foreign-funded hospitals, value-added telecommunications services, etc., carry out pilot projects in the pilot free trade zone, Lin-gang Special Area, etc., and continue to open up new space and create new opportunities for Shanghai’s foreign investment promotion work.

Precise investment promotion: The Shanghai Municipal Commission of Commerce has formulated a precise investment promotion action plan, which segments target investors by country and industry. Through investment attraction channels such as industry chains, funds, roadshows, exhibitions, sports competitions, collaboration and partnership, we will eye on key areas such as direct investment, equity investment, reinvestment of returns, profit reinvestment, and financial investment, and strive to stabilize the scale of foreign investment and its proportion in the country.

Precise services: Under the city’s integrated investment promotion service mechanism, the Shanghai Municipal Commission of Commerce has made serving foreign-funded enterprises a top priority and earnestly implemented various measures for the Business Environment 8.0. This year, the Shanghai Municipal Commission of Commerce will step up efforts on the effectiveness of policy implementation and problems-solving. Firstly, we will continue to listen to the feedback and problems raised by the foreign-funded enterprises from various aspects and hold roundtable meetings for government-enterprise communication. Last year, nearly 130 roundtable meetings were held at the municipal and district levels, and many problems have been reported and solved through this platform. This year, the city leaders have personally held two meetings, and there will be another one next Tuesday. The Shanghai Municipal Commission of Commerce has established a follow-up supervision system and will continue to coordinate and facilitate until the problems are solved.

Secondly, to address the common requests raised by foreign-funded enterprises, we plan to establish a flexible and targeted “specialized program” with faster response, such as innovation applications, standards formulation, mergers and acquisitions, protection of rights and interests, talent recruitment and employment, etc., to coordinate and solve individual pain points and bottlenecks of enterprises. We will solve common problems through large-scale mechanisms and address the individual pain points of enterprises through the “specialized program”, so that foreign-funded enterprises can develop with greater ease, peace and confidence.

 

Source: International Services Shanghai

https://english.shanghai.gov.cn/en-InvestmentPromotionConference2025/20250320/8ea1802df2f54700b86c71119528a637.html

 

Expert Perspective

 

Regulation of Self-Dealing by Directors, Supervisors and Senior Managers Under the New Company Law

 

By Fu Changyu, Jiang Xuan (Zhong Lun Law Firm)

 

[Continued from the Previous Issue]

IV. Determination of Related Relationships under the New Company Law

Related relationships are usually manifested as family relationships or shareholding/interest relationships. After the new Company Law made clear provisions, the practical difficulties often lie in the determination of “enterprises directly or indirectly controlled” and “other related relationships”, and such determination usually require a comprehensive analysis of specific circumstances of individual cases. At the same time, the purpose of the self-dealing regulatory system is to prevent improper infringement of company interests, and the determination of related relationships is also inseparable from the basic point of “the possibility of transferring the company’s interests”.

In practice, further reference for determination criteria may include the Accounting Standard for Business Enterprises No. 36 — Related Party Disclosures, the Administrative Measures for Information Disclosure of Listed Companies, etc. Article 3 of the Accounting Standard for Business Enterprises No. 36 — Related Party Disclosures stipulates: “When one party controls, jointly controls, or exerts significant influence over another party, or when two or more parties are under the control, joint control, or significant influence of the same party, they constitute related parties. ‘Control’ refers to the power to determine an enterprise’s financial and operating policies and to obtain benefits from the enterprise’s operating activities based on this. ‘Joint control’ refers to the shared control of an economic activity in accordance with contractual agreements, which exists only when all investing parties sharing control rights unanimously agree on important financial and operating decisions related to the economic activity. ‘Significant influence’ refers to the power to participate in the decision-making of an enterprise’s financial and operating policies, but without the ability to control or jointly control the formulation of these policies with other parties.” Article 4 lists related parties, including: parent companies, subsidiaries, joint ventures, associated enterprises; enterprises controlled by the same parent company; investors who implement joint control or exert significant influence. That is, if such circumstances exist in enterprises directly or indirectly controlled by directors, supervisors, and senior management, they should also be included in the scope of related party for review. 

[To be Continued]