Issue 88

Shanghai Weekly Bulletin

No.1,April 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. Ministry of Commerce Supports the Accelerated Transformation of Five Cities into International Consumption Centers

【Keywords: International consumption, Centers】

 

Recently, the General Office of the State Council released the Several Measures on Supporting the Cultivation and Development of International Consumption Center Cities formulated by the Ministry of Commerce, which support the accelerated transformation of Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing into international consumption centers, and propose measures from eight aspects such as actively promoting the debut economy, optimizing entry policies and consumption environment.

 

Source: Chinese Government Website

https://www.gov.cn/zhengce/content/202503/content_7015727.htm

 

2.The China-Italy Agreement on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income Takes Effect

【Keywords: Italy, Double taxation, Tax evasion】

 

Recently, the State Taxation Administration (STA) issued the Announcement on the Entry into Force of the Agreement between the Government of the People’s Republic of China and the Government of the Italian Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. The Agreement, effective from February 19, 2025, will apply to taxes withheld at source on income derived on or after January 1, 2026, and other income taxes levied in any tax period beginning on or after January 1, 2026.

 

Source: STA

https://fgk.chinatax.gov.cn/zcfgk/c100012/c5239047/content.html

Original text of the Agreement

https://www.chinatax.gov.cn/chinatax/n810341/n810770/c4210610/5027091/files/42106101.pdf

 

3. The Supreme People’s Court Issued a Document to Clarify Procedural Matters Related to Civil Cases Involving Foreign State Immunity

【Keywords: Foreign-related immunity】

 

On March 26, the Notice of the Supreme People’s Court on Procedural Matters Related to Civil Cases Involving Foreign State Immunity was released, clarifying that first-instance civil cases in which a foreign state as defined in Article 2 of the Foreign State Immunity Law is the defendant or third party shall be under the jurisdiction of the intermediate people’s courts in the provinces, autonomous regions, and municipalities directly under the Central Government with jurisdiction over foreign-related civil and commercial cases, as well as the maritime courts, financial courts, and intellectual property courts.

 

Source: Supreme People’s Court

 

4.Two Authorities Continue to Implement Preferential Policies for Stamp Duty on Offshore Trade

【Keywords: Offshore trade, Stamp duty】

 

On March 24, the Ministry of Finance and the State Taxation Administration issued the Notice on Continued Implementation of Preferential Policies for Stamp Duty on Offshore Trade, which clearly stipulates that stamp duty will be exempt on sales contracts signed by enterprises registered in China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area, China (Jiangsu) Pilot Free Trade Zone Suzhou Area, China (Zhejiang) Pilot Free Trade Zone, China (Fujian) Pilot Free Trade Zone Xiamen Area, China (Shandong) Pilot Free Trade Zone Qingdao Area, China (Guangdong) Pilot Free Trade Zone, and Hainan Free Trade Port for their offshore resale business. This Notice will be implemented from April 1, 2025 to December 31, 2027.

 

Source:Ministry of Finance

http://szs.mof.gov.cn/zhengcefabu/202503/t20250327_3960804.htm

 

【Shanghai】

 

1.Shanghai Introduces 11 New Measures on Tax Collection and Management Services to Promote Higher-standard Opening-up of the Pudong Leading Area

【Keywords: Tax collection and management, Pudong】

 

Recently, the Shanghai Municipal Tax Service of the State Taxation Administration issued the Opinions on Introducing Measures for Tax Collection and Management Services to Serve Higher-standard Opening-up of the Pudong Leading Area, rolling out 11 new measures for tax collection and management services with a focus on three areas, namely fostering new drivers of foreign trade development, enhancing the appeal for foreign investment, and adopting an innovative approach to tax services. 

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20250326/a31e3209a4ea4f14b80defbbf6f91fe9.html

 

2.Shanghai Municipal Commission of Economy and Informatization Issues a Document to Promote Innovative Development of Intelligent Computing Cloud Industry

【Keywords: Intelligent computing cloud】

 

Recently, the Shanghai Municipal Commission of Economy and Informatization issued the Implementation Opinions of Shanghai on Promoting the Innovative Development of Intelligent Computing Cloud Industry (2025-2027), which outlines 15 tasks in four aspects and proposes that by 2027, the scale of the city’s intelligent cloud computing industry will exceed RMB 200 billion, and an ecosystem with “Cloud-Edge-Device” collaboration and a complete industrial chain will basically take shape.

 

Source:Shanghai Municipal Commission of Economy and Informatization

https://www.sheitc.sh.gov.cn/cyfz/20250326/b4cc54c1e15b49f7bb18daff671b28d7.html

 

3.Shanghai Clarifies the Key Task for Promoting the Quality and Expansion of Service Consumption in 2025

【Keywords: Service consumption】

 

Recently, the Shanghai Municipal Commission of Commerce released the Key Tasks for Promoting the Quality and Expansion of Service Consumption in the City in 2025, proposing 20 key tasks from four aspects — tapping the potential of basic service consumption, improving the capabilities of mid-tier service consumption, expanding the space for premium service consumption, and creating iconic service consumption promotion activities.

 

Source:Shanghai Municipal Commission of Commerce

https://sww.sh.gov.cn/zwgkgfqtzcwj/20250326/9e4e585c749d4bb89909bb9eca5c984b.html

 

One Week in Shanghai

 

【Latest News】

 

1.Shanghai Releases Service Package 2.0 for Handling Enterprise-related Rights Infringements

【Keywords: Enterprise-involved, Infringement information】

 

Recently, the Cyberspace Administration of the CPC Shanghai Municipal Committee released the Service Package 2.0 for Handling Enterprise-related Rights Infringements (2025). The document categorizes the channels for reporting enterprise-related infringement into website platforms, reporting centers, cyberspace administration departments at various levels, and enterprise-related infringement service stations, with workflow charts provided for each category. Targeting at the blind spots and misunderstandings of enterprises in submission of complaint materials, Service Package 2.0 provides tailored guidance to help enterprises improve their efficiency of handling infringement information.

 

Source: Cyberspace Administration Shanghai

 

2.Shanghai Unveils 2025 Key Industry Layout Map

【Keywords: Key industries】

 

On March 25, the Shanghai 2025 Key Industry Layout Map was released at the opening ceremony of the Shanghai Global Investment Promotion Conference. This release includes the forward-looking deployment of 10 key industrial chains, the initial achievements in nurturing trillion-yuan-level industrial clusters with “city-district coordination”, and 14 district-level distinctive industrial clusters.

 

Source: Shanghai Release

 

【Forum & Exhibition】

 

1. CDIE Digital Innovation Expo to be held in Shanghai on April 15

【Keywords: information security】

The 2025 CDIE Digital Innovation Expo’s “Data Innovation & Information Security Forum” will be held at the Shanghai Zhangjiang Science Hall on April 15. This year’s conference will feature 1 main forum, 4 industry forums, 7 thematic forums and 5 closed-door sessions.

 

Source:ISC2 Shanghai Chapter

 

【Competitive Event】

 

1. The 3rd World AI4S Prize Opens for Team Registration

【Keywords: World AI4S Prize】

The team registration and preliminary rounds of the 3rd World AI4S Prize are in progress. The competition features five major tracks: aviation safety, materials design, synthetic biology, innovative drugs, and new energy. Focusing on addressing scientific issues in high-value industrial scenarios, the event is committed to promoting key technological breakthroughs and cultivating innovative talents.

 

Source:Shanghai Municipal Commission of Economy and Informatization

 

2.2025 “Shanghai Design 100+” Global Competition Calling for Entries

【Keywords: Shanghai Design 100+】

 

The “Shanghai Design 100+” Global Competition, jointly initiated by UNESCO and Shanghai, is calling for submissions of design works completed between January 1, 2024 and May 20, 2025, regardless of field and design type. The competition specially focuses on the application scenarios that use creative designs to promote technological transformation, boost consumption, inherit cultural traditions, drive new-quality productive forces, and shape a harmonious ecological environment.

 

Source: Shanghai Municipal Commission of Economy and Informatization

 

【Culture & Art】

 

1.“A Tribute to the Ancestral Master — Arms and Armor Artistry Since the 14th Century” Special Exhibition Opens

【Keywords: Arms and armor artistry】

On March 28, the Special Exhibition “A Tribute to the Ancestral Master — Arms and Armor Artistry Since the 14th Century” opened at the Han Tianheng Art Museum. The exhibition brings together the essence of Chinese cold weapons since the 14th century from the Song, Yuan, Ming, Qing dynasties to modern China, as well as overseas swords and armors from Japan, Malaya, India, Turkey, Iran, Sri Lanka, the Caucasus, etc.

 

Source:Shanghai Han Tianheng Art Museum 

 

2.“Huang Azhong: Every Stroke Strikes a Chord” Art Exhibition Debuts at the China Art Museum

【Keywords: Huang Azhong】

On March 25, the “Huang Azhong: Every Stroke Strikes a Chord” Art Exhibition officially opened at the China Art Museum, Shanghai (Shanghai Art Museum). This exhibition displays 194 representative works donated by Huang Azhong to the China Art Museum, Shanghai, covering his oil paintings, ink paintings, watercolors and other multi-media creations from the 1970s to the present. It fully records the artist’s journey from breaking conventions in the “Twelve People’s Painting Exhibition” to integrating Chinese and Western cultures in his later explorations.

 

Source: China Art Museum

 

【Corporate Activities】

 

1.Certificate Awarding Ceremony for Regional Headquarters of Multinational Corporations, Foreign-funded R&D Centers, and Global Partners for Promoting Foreign Investment Held

【Keywords: Multinational corporations, Foreign investment】

 

Recently, Shanghai held the certificate awarding ceremony for the 40th batch of regional headquarters of multinational corporations and foreign-funded R&D centers, and the 2nd batch of global partners for promoting foreign investment. Certificates were awarded to 30 regional headquarters of multinational corporations, 10 foreign-funded R&D centers, and 10 global partners for promoting foreign investment. 

 

Source: Shanghai Release

 

Q&A

 

Q:The head of the Shanghai Hongqiao International CBD Administrative Committee answered questions from reporters at the press conference held by the Information Office of Shanghai Municipality to introduce the milestone achievements of the Hongqiao International Central Business District on the 4th anniversary of the launch of the Hongqiao International Open Hub — Serving “going global” enterprises is the main function of the Business District. What has the Business District done in this regard? What are the plans for the next step?

 

A: As an internationalized central business district, we must always adhere to the “four positioning” because the Hongqiao International Central Business District (“Business District”) carries multiple national strategies, and we should align the functions of the Business District with national strategic needs. Therefore, in the past few years, we have attached great importance to providing higher-quality services for enterprises “going global” and facilitating the high quality “Belt and Road” cooperation. Since last year, we have made the following achievements.

First, we have built the Hongqiao Overseas Development Service Center. With the support of various functional platforms, we have brought together more than 500 international professional service providers in ten categories including finance, law, taxation, intellectual property protection, and human resources services, to facilitate high-quality global expansion of enterprises. Recently, we have also launched the Greater Hongqiao Global M&A Project Online Database, which dynamically releases project information on overseas financing and investment etc., and enables precise project matchmaking for enterprises.

Second, we have launched the “three lists” of services, policies, and events. We have developed a special service scheme, providing professional consulting services to address core service needs of enterprises exploring overseas markets. One-on-one services are also available if a company has any special needs. At the same time, we have released the “going global” professional service voucher policy. Moreover, we have organized 124 events, including 2 this week alone. These events have facilitated over 3,000 enterprise engagements, with 1/3 of participating companies coming from Yangtze River Delta cities outside Shanghai.

Third, we have established an international service matrix. We have built the Hongqiao International Talent Service Center, strengthened the functions of the Hongqiao International Central Legal-services District, set up an overseas intellectual property rights protection assistance base, and continuously improved the international professional service functions.

Looking forward, we will adhere to the requirements of the CPC Shanghai Municipal Committee and Municipal Government and strive to build a pilot zone to serve enterprises’ global expansion.

First, further enhance capabilities. In light of local enterprises’ robust demand in seeking international operation and enhance their global competitiveness, the Business District will focus on promoting synergy between the integrated development of the Yangtze River Delta and the high quality “Belt and Road” cooperation, continuously enhance the two-way open hub functions, further accelerate the consolidation of high-quality professional services for enterprises’ global expansion, especially high-standard service providers, optimize and improve government services, attract more Yangtze River Delta enterprises to locate their international business headquarters in Hongqiao.

Second, reinvent the model. Forging close ties between the “two belts” of the Hongqiao International Open Hub and more cities in the Yangtze River Delta, we will jointly build a new “going global” service model of “Yangtze River Delta manufacturing + Hongqiao services + global market” to promote the Yangtze River Delta’s advantageous production capacity, high-quality equipment, applicable technology and standards to the rest of the world. At the same time, we also support various professional service providers to consolidate their international networks and form a better “going global” ecology.

Third, provide more precise services. We are actively seeking support from relevant departments and have connected with 46 countries and more than 130 overseas economic and trade cooperation zones. At the same time, we will give full play to the interconnection advantages of platforms such as Hongqiao Overseas Development Service Center, International Talent Service Center, and Overseas Trade Center. Focusing on enterprises’ “going global” demands, we will provide enterprises with precise and professional services throughout the process with first-class professional services, talent support, and comprehensive supporting facilities, to help them engage in the extensive consultation and joint contribution for shared benefit of “Belt and Road” development.

 

Source: Shanghai Municipal Development and Reform Commission

 

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]

V. Review of the Legitimacy of Self-dealing and Related-party Transactions

For many reasons, foreign-funded enterprises are at risk of being treated unfairly in self-dealing and related-party transactions involving directors, supervisors and senior managers. In judicial practice, the key criteria for determining the validity of such transactions are usually centered on “transaction fairness” and “genuine intent”.

First, whether the transaction price is fair is the core element for determining the legitimacy of related-party transactions. As per Article 76 of the Corporate Governance Guidelines for Listed Companies, related-party transactions should have commercial substance and maintain fair pricing, which in principle should not deviate from the rates or terms applicable to independent third parties in the market. To prove the legitimacy of the transaction, it is very important to provide comprehensive evidence to prove whether the transaction price deviates from the normal market standards and whether it causes losses to the company. In the Supreme People’s Court’s guiding case mentioned in the previous issue, the key to winning the case was that Shanghai Lan Company proved that the price of the indirect self-dealing involved in the case was obviously higher than the market fair value.

Second, whether the resolution procedures for self-dealing and related-party transactions can reflect the genuine intent of the company. Under the premise that the Company Law of the People’s Republic of China (“Company Law”) has clarified the information disclosure and resolution requirements, whether the directors, supervisors and their related parties have disclosed information truthfully, completely and fully is the basis for determining whether the approval of the relevant transactions has been based on informed deliberation, reflecting the genuine intent of the company. If the directors, supervisors and their related parties provide false, misleading or incomplete information and based on this, the company’s approval does not reflect its genuine intent, the validity of the relevant transactions will also be flawed.

For foreign-funded enterprises, initiating liability disputes against directors, supervisors, and senior managers and their related parties for damage to the interests of the company is an ex post remedy. From the perspective of prevention, foreign-funded enterprises can further improve their management of self-dealing and related transactions of directors, supervisors, and senior managers based on the provisions of the new Company Law and drawing on the experience of judicial practice, refine the scope of related parties, strengthen information disclosure requirements, and standardize the review and approval procedures. Foreign-funded enterprises are also advised to strengthen training on fiduciary duties and compliance to mitigate risks of improper self-dealing and related transactions.