Issue 93

Shanghai Weekly Bulletin

No.1,May 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. Guide to Working and Living in China as Business Expatriates (2025 Edition) Released

【Keywords: Foreign business expatriates】

 

Recently, eleven central government departments, including the Ministry of Commerce (MOFCOM), jointly released the Chinese and English versions of the Guide to Working and Living in China as Business Expatriates (2025 Edition). The Guide comprises four sections: Dos and Don’ts, Daily Life Services, Services for Stay and Residence in China, and Relevant Services for Work in China. 

Source:MOFCOM

http://wzs.mofcom.gov.cn/zcfb/art/2025/art_c82dde78aadb405e8e55e4a73dcf468c.html

 

2. Second Draft Revision of the Arbitration Law Open for Public Comment

【Keywords: Arbitration Law】

 

The National People’s Congress is currently seeking public input on the Second Draft Revision of the Arbitration Law of the People’s Republic of China, with the consultation period open until May 29. According to the draft, parties involved in foreign-related maritime disputes, or in foreign-related disputes between enterprises registered within pilot free trade zones approved by the State Council or the Hainan Free Trade Port, may opt for arbitration by an arbitration commission if they have a written arbitration agreement.

 

Source:National People’s Congress of China

http://www.npc.gov.cn/flcaw/userIndex.html?lid=ff808181927f0e7b01967f6beaf25eef

 

3. State Taxation Administration Revises the Administrative Measures for VAT Refund for International Transport Vessels

【Keywords: VAT refund for vessels】

 

The State Taxation Administration (STA) recently issued the Announcement on the Revision of the Administrative Measures for VAT Refunds for International Transport Vessels, clarifying relevant matters such as the filing, declaration, processing, and subsequent management of VAT refunds for vessels engaged in international transportation. The revised measures took effect on April 21, 2025. 

 

Source:STA

https://fgk.chinatax.gov.cn/zcfgk/c100012/c5240145/content.html

 

【Shanghai】

 

1.Shanghai Intensifies and Accelerates Efforts to Advance Ten Key Breakthrough Tasks for Optimizing the Business Environment in 2025

【Keywords: Business environment, Ten key breakthrough tasks】

 

Recently, the Shanghai Municipal Development & Reform Commission issued the Notice on Intensifying and Accelerating Efforts to Advance the “Ten Key Breakthrough Tasks” for Optimizing the Business Environment in 2025. This initiative selects ten matters with pressing needs from enterprises and high demands for inter-departmental coordination for focused breakthroughs. It vigorously introduces incremental measures, tackles critical bottlenecks, and openly welcomes public oversight. 

 

Source:Shanghai Release

 

2. Shanghai Municipal Bureau of Justice Releases 20 Measures to Continuously Optimize the Law-based Business Environment in 2025

【Keywords: Law-based Business environment】

 

Recently, the Shanghai Municipal Bureau of Justice issued the Several Measures for Optimizing the Law-based Business Environment in 2025. The document proposes 20 initiatives across four aspects, namely, optimizing institutional supply, regulating administrative law enforcement, enhancing legal service capabilities, and meeting multi-tiered legal needs. These initiatives are further broken down into 60 specific tasks, aimed at accelerating the development of a world-class, law-based business environment. 

 

Source:Shanghai Municipal Bureau of Justice

 

3. Pudong Upgrades Cross-border IP Services with Five Measures to Safeguard Sci-tech Innovation Enterprises Going Global 

【Keywords: Cross-border, Intellectual property】

 

Recently, the Pudong New Area Intellectual Property Bureau and the Shanghai Customs at the Science and Technology Innovation Center jointly released the Measures for Cross-border Intellectual Property Services for Sci-tech Innovation Enterprises. With the goals of “deepening collaboration, providing precise services, and ensuring comprehensive protection”, these measures focus on the pain points and difficulties faced by sci-tech innovation enterprises in cross-border IP protection, and provide stronger institutional support for their overseas expansion.

 

Source:Pudong Release

One Week in Shang

【Latest News】

 

1. Shanghai Sees 13.1% Surge in Consumer Spending During May Day Holiday

【Keywords: May Day, Consumption】

 

According to data from the Consumption Market Big Data Laboratory (Shanghai), total consumer spending in Shanghai reached RMB 59.46 billion from April 30 to May 4, marking a 13.1% year-on-year increase. Of this, offline consumption amounted to RMB 33.15 billion, while online consumption reached RMB 26.31 billion. Inbound spending remained robust, with overseas visitors contributing RMB 455 million, up 211.6% year-on-year. Additionally, tax refund sales saw a significant increase, with tax-free sales volume up 1.2 times and refunded amounts up 1.3 times compared to the previous year.

 

Source:Shanghai Commerce

 

2. Shanghai International Service Portal Launches Italian Website, TikTok and LinkedIn Accounts

【Keywords: Shanghai International Services Portal】

 

To further expand and upgrade multilingual services, increase the production and release of video content and enhance global outreach, the Foreign Affairs Office of Shanghai Municipal People’s Government officially launched the Italian version of the Shanghai International Service Portal, along with its WeChat video account, TikTok, YouTube, and LinkedIn accounts, on May 1.

 

Source:Shanghai Foreign Affairs

 

3. Jing’an District Establishes First Overseas Investment Project Permit Consultation Service Point in Central Shanghai

【Keywords: Outbound investment, Project consultation】

 

Jing’an District has recently launched the first consultation service point for overseas investment project permits in Shanghai’s central urban area. Online appointment booking is now available, and the offline service window is scheduled to open on May 16. The center will provide enterprises with face-to-face consultations on outbound investment policies and procedural guidance, further streamlining channels for companies seeking to expand internationally.

 

Source:Shanghai Municipal Development & Reform Commission

 

4. “Shanghai’s Business Environment in My Eyes” Series Launches Online on May 13

【Keywords: Business environment】

 

Jointly produced by the Shanghai Municipal Development & Reform Commission, the Information Office of the Shanghai Municipal People’s Government, and Wenhui Daily, the first season of the short video series Shanghai’s Business Environment in My Eyes will be launched across all online platforms starting May 13. Featuring interviews with foreign companies operating in Shanghai alongside relevant government departments, the series presents both exemplary cases of business environment optimization and candid, on-the-ground feedback from enterprises. Through these vivid portrayals, it highlights Shanghai’s ongoing efforts to deepen reforms and cultivate a world-class international business environment.

 

Source:Wenhui Daily

 

【Culture & Art】

 

1. LEGOLAND® Shanghai Resort Set to Open on July 5

【Keywords: LEGOLAND® Resort】

On May 7, Merlin Entertainments, a world-renowned operator of themed attractions, officially announced that the LEGOLAND® Shanghai Resort, the world’s largest LEGOLAND® park, will welcome visitors starting July 5, 2025.

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20250507/dcae367320f74b358b93efd4956ab8fe.html

 

2. “Titanic: Echoes from the Past — Immersive Experience” Makes Its East China Debut

【Keyword: Titanic】

The Titanic: Echoes from the Past — Immersive Experience has unveiled at the Bund Finance Center recently. Blending historical research, virtual reality (VR) reconstruction, and interactive digital storytelling, the 30-minute large-scale VR journey allows visitors to relive the epic voyage and tragedy of the Titanic and immerse themselves in a defining moment of maritime history.

 

Source:Shanghai Tourism

 

3. “Peach Blossom Stone at the Foot of Helan Mountain – Treasures of Cultural Relics from the Xixia Imperial” Exhibition Officially Opened

【Keywords: Xixia relics】

The exhibition Peach Blossom Stone at the Foot of Helan Mountains – Treasures of Cultural Relics from the Xixia Imperial has opened at the Shanghai History Museum recently. Divided into four thematic sections, the exhibition brings together over 120 artifacts from Northwest China, with nearly 30% of the exhibited items being Class A cultural relics.

 

Source:Shanghai History Museum

 

4. “Poetry of Colors: A Donation Exhibition of Zhou Bichu’s Art” Now on View

【Keywords: Zhou Bichu】

Recently, the Poetry of Colors: A Donation Exhibition of Zhou Bichu’s Art opened at the SPSI Art Museum. Featuring nearly 120 carefully selected works, the exhibition offers a comprehensive overview of the artistic evolution of Zhou Bichu, a pioneer of modern Chinese oil painting. The exhibition will run through June 2.

 

Source:SPSI Art Museum

 

【Corporate Activities】

 

1. Porsche Establishes R&D Center in Jiading District

【Keyword: Porsche】

 

Recently at the 2025 Shanghai International Auto Show, Porsche announced the completion of a strategic upgrade to its China R&D center. The newly constructed Shanghai office, located in Jiangqiao Town of Jiading District, is set to commence operations in the second half of this year. Covering over 10,000 square meters, the center will house dedicated workshops and a Human-Machine Interface (HMI) laboratory.

 

Source:Shanghai Jiading

 

2. Roche Launches RMB 2 Billion New Manufacturing Project in Pudong

【Keyword: Roche】

 

On May 8, Roche Pharma China held a groundbreaking ceremony at Zhangjiang Science Hall for its new biopharmaceutical manufacturing facility. With a total investment of RMB 2.04 billion, the new base will serve as Roche’s second innovative drug manufacturing site in China. It will operate in synergy with the company’s existing local production facilities, further strengthening Roche’s supply chain and localized manufacturing footprint across the country.

 

Source:Pudong Release

 

3. CELLBOND Establishes Crash Test R&D and Manufacturing Center in Lin-gang

【Keyword: CELLBOND】

 

On May 7, the Lin-gang Special Area Administration and UK-based company CELLBOND signed an agreement to launch the company’s China R&D and manufacturing center for crash test products in Lin-gang.

 

Source:Shanghai Lin-gang

 

4. HOKA Unveils First-ever Global Brand Experience Center in Shanghai

【Keyword: HOKA】

 

On May 7, the internationally renowned sportswear brand HOKA unveiled its first global brand experience center in Xintiandi, Shanghai. Spanning three floors and covering 1,600 square meters, the flagship center introduces a refreshed brand identity and redefines traditional retail experiences. It integrates advanced sports performance testing, a full product lineup, immersive experiential zones, and dynamic community spaces, marking a significant milestone in HOKA’s expansion in the Chinese market.

 

Source:Shanghai Huangpu

 

Q&A

Q:At a recent press conference hosted by the Information Office of the Shanghai Municipal People’s Government, a representative of the Shanghai Municipal Development & Reform Commission responded to a media inquiry regarding the city’s “Ten Key Breakthrough Tasks” for Optimizing the Business Environment in 2025 — The first of these tasks focuses on aligning reforms with World Bank B-READY standards. How will Shanghai align with international standards to further improve its overall business environment?

A: The World Bank’s Business Ready (B-READY) Report is its flagship publication and the world’s most influential quantitative assessment system for measuring, comparing and evaluating business environment. It serves as a critical indicator influencing capital flows and policy trends worldwide. In 2023, the World Bank released a new Business Ready (B-READY) Methodology Handbook, which evaluates business environment through three key dimensions: regulatory framework, public services, and operational efficiency. Data is collected via two mechanisms: enterprise surveys and expert assessments. Enterprise surveys are conducted nationwide every three years, while Shanghai is the sole sample city in the Chinese mainland selected annually for expert assessments. We regard aligning reforms with World Bank B-READY standards as one of the ten key breakthrough tasks, primarily due to the following three considerations:

First, the city is committed to benchmarking against high standards to continuously build a world-class business environment. The World Bank’s business environment assessment reflects a clear direction toward higher standards and quality in business environment development. Its assessment principles emphasize the openness, stability and transparency of policies and regulations, the comprehensiveness, accessibility and digitization of public services, and the comprehensiveness, balance and quantification of corporate experience, which is of great reference significance for Shanghai to carry out the optimization of its business environment.

Second, Shanghai aims to proactively respond to emerging global economic and trade trends and enhance its international competitiveness. As China’s gateway to the world, Shanghai has a distinctly outward-facing economy. One of the major shifts in the World Bank’s new methodology is the transition from a domestic to an international perspective, incorporating advanced global reform concepts and aligning with high-standard trade agreements such as CPTPP and DEPA. It emphasizes emerging areas such as e-government and environmental sustainability. Leveraging its participation in the World Bank’s assessment, Shanghai is accelerating alignment with global economic and trade norms to enhance its appeal to both domestic and international high-end resources.

Third, the city is placing greater emphasis on enhancing the enterprise experience as a foundation for high-quality economic development. For the first time, the World Bank’s business environment assessment has extended enterprise surveys to the entire territory of an economy, focusing on how regulatory policies and public services are implemented and perceived by business operators, and placing emphasis on tangible policy outcomes. This aligns fully with Shanghai’s Business Environment Action Plan 8.0. Ultimately, it is enterprises that determine the quality of the business environment. This year, we have made “enhancing business perception” our central focus, tackling long-standing and complex issues that matter most to enterprises. A series of targeted and breakthrough measures have been introduced to address pressing concerns raised by market participants. These practical and perceptible efforts aim to deliver visible improvements that businesses can truly feel. By continuously improving the business environment, we seek to stabilize market expectations, boost confidence in development, and unleash the vitality of market players, thereby laying a solid foundation for sustained economic growth.

Since last year, under the guidance and support of national ministries and commissions, Shanghai has launched a series of new reform measures across the ten indicator areas assessed by the World Bank, as part of its efforts to align reforms with World Bank B-READY standards. For example, in the area of market access, the city has enhanced its online enterprise registration platform to provide all-day digital services covering all business types and procedures. It also pioneered automatic cross-departmental updates of enterprise information. In the public utilities sector, Shanghai introduced an innovative “Land Acquisition + Power Access” model, which enables the pre-construction of switch stations to ensure immediate access to electricity upon project completion, and thereby significantly accelerates connection times.

Openness, innovation, and inclusiveness are hallmarks of Shanghai’s urban character and the defining features of its business environment. Looking ahead, Shanghai will continue to align reforms with World Bank B-READY standards, precisely interpret the underlying logic and practical requirements of the assessment system, and strive to build a first-class, market-oriented, law-based, and international business environment.

 

Source:Information Office of Shanghai Municipal People’s Government

https://www.shio.gov.cn/TrueCMS/shxwbgs/2025n_5y_wdsl/content/fe81ed68-9f42-4790-8e96-2846207242d0.html

 

Expert Perspective

Equity Investment in the IDC Sector: Industry Overview, Foreign Investment Access and Compliance Pathways

 

By Zhang Zhewen (AnJie Broad Law Firm)

Introduction

In recent years, with the explosive growth of technologies such as cloud computing and artificial intelligence (AI), the status of data as a new type of production factor has become increasingly prominent. Consequently, the Internet Data Center (IDC) industry, as the core carrier for data storage and processing, has ushered in unprecedented development opportunities. From traditional infrastructure leasing to the deep integration of cloud services, the IDC industry is rapidly transforming into a technology-driven sector, emerging as a “new infrastructure” high ground where capital is actively being deployed.

This article explores key aspects of equity investment in the IDC sector, including industry characteristics, licensing access, foreign investment policies, and transaction structures. It aims to provide investors with a comprehensive guide to navigating the opportunities and challenges in this fast-growing field.

I. Overview of the IDC industry

According to the Telecommunications Services Classification Catalogue (2015), Internet Data Center (IDC) services (Category B11) refer to the provision of services, through outsourced leasing of corresponding data center facilities, for the placement of users’ servers and other internet or network-related equipment, along with proxy maintenance, system configuration and management services. It also includes the leasing of database systems or servers and their storage space, the proxy leasing of communication lines and egress bandwidth, and other application services.

In addition, IDC services also encompass Internet Resource Collaboration Services (IRCS). IRCS refers to the provision of services such as data storage, internet application development environments, internet application deployment, and operation and management for users through the internet or other networks, utilizing equipment and resources hosted within data centers. These services are characterized by features such as on-demand access, usage-based pricing, scalability, and collaborative sharing. 

From an industry perspective, IDC services may be classified as value-added telecommunications services grounded in underlying assets, including physical space, IT infrastructure, and ancillary non-IT facilities. Historically, the IDC sector has evolved from its original focus on basic offerings — such as leasing physical space and IT equipment and providing server hosting — to include value-added services such as system configuration, storage management, security assurance, and proxy maintenance. Over time, the industry has further progressed toward cloud-based data centers that provide diversified services such as Internet Service Provision (ISP), Content Delivery Networks (CDN), and Platform as a Service (PaaS), where service providers offer customers development and testing environments through proprietary platforms built atop their own infrastructure.

[To be Continued]