Issue 94

Shanghai Weekly Bulletin

No.2,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.China Further Expands Visa-free Entry Countries

【Keywords: Visa-free】

 

From June 1, 2025 to May 31, 2026, ordinary passport holders from Brazil, Argentina, Chile, Peru, and Uruguay may enter China visa-free for business, tourism, visiting relatives or friends, exchange visits or transiting for up to 30 days. Those who do not meet the visa-free requirements must obtain a visa prior to entry.

 

Source:Consular Express

 

2.China and Mongolia Customs to Implement Mutual Recognition of Authorized Economic Operators (AEO)

【Keywords: Mongolia, AEO】

Recently, the General Administration of Customs (GAC) issued the Announcement on Implementing Mutual Recognition of Authorized Economic Operators (AEO) Between China and Mongolia Customs. According to the announcement, both countries will mutually recognize each other’s AEO status and provide reciprocal facilitation measures to AEO enterprises during the customs clearance of imported goods.

 

Source:GAC

http://www.customs.gov.cn/customs/302249/2480148/6507935/index.html

 

3.People’s Bank of China and Banco Central do Brasil Sign MoU on Financial Strategic Cooperation and Bilateral Local Currency Swap Agreement

【Keywords: Brazil, Local currency swap】

 

Recently, the People’s Bank of China and the Banco Central do Brasil signed the Memorandum of Understanding on Financial Strategic Cooperation Between the People’s Bank of China and the Banco Central do Brasil and the Bilateral Local Currency Swap Agreement Between the People’s Bank of China and the Banco Central do Brasil. The bilateral local currency swap agreement was renewed with a total value of RMB 190 billion / BRL 157 billion. The agreement is valid for five years and can be extended upon mutual consent.

 

Source:People’s Bank of China

 

【Shanghai】

 

1.Two Authorities Jointly Launch Facilitation Measures for Inspection of Debut Imported Consumer Goods

【Keywords: Debut economy, Imported consumer goods】

 

Recently, the Shanghai Customs and the Shanghai Municipal Commission of Commerce jointly issued the Announcement on Piloting the Facilitation Measures for Inspection of Debut Imported Consumer Goods. This pioneering initiative introduces the nation’s first “whitelist + differentiated conformity assessment” facilitation measure for debut imported consumer goods, aiming to significantly improve customs clearance efficiency for imported consumer goods debuting in the country, and strongly support the expansion of consumption.

 

Source:Shanghai Customs

http://shanghai.customs.gov.cn/shanghai_customs/423405/qtzhxx1/423461/423462/6508184/index.html

 

2.Pudong Releases Several Measures to Further Promote High-quality Development of Exhibition Economy

【Keywords: Exhibition economy】

 

Recently, the Shanghai Pudong New Area Commission of Commerce released the Several Measures of Pudong New Area for Promoting the High-quality Development of the Exhibition Economy. The document outlines nine measures across three key areas, namely, attracting and cultivating high-quality exhibitions, enhancing their ripple effects, and strengthening service and support. Upon comprehensive evaluation, exhibitions recognized as leading, high-quality, and innovative ones are eligible for funding support of up to RMB 1 million, 600,000, and 300,000 respectively.

 

Source:Pudong Release

One Week in Shanghai

【Latest News】

 

1.Shanghai Head Office of the People’s Bank of China Actively Promotes Launch of “Technology Board” Bond Market in Shanghai

【Keywords: Technology Board】

 

Recently, the People’s Bank of China and the China Securities Regulatory Commission jointly issued an announcement on supporting the issuance of sci-tech innovation bonds. The move aims to guide bond market funds towards early-stage startups, small enterprises, long-term investments, and hard-tech sectors, and foster the development of a financial system that aligns with the needs of sci-tech innovation. As of May 9, two technology enterprises and one equity investment institution in Shanghai have been included in the first national pilot program.

 

Source:Shanghai Head Office of the People’s Bank of China

 

2. Shanghai North Bund International Legal Service Harbour Officially Opens

【Keywords: North Bund International Legal Service Harbour】

 

Recently, the Shanghai North Bund International Legal Service Harbour was officially launched in Hongkou District. The Service Harbour brings together cutting-edge legal consultation, notary services, judicial appraisal, commercial mediation, international arbitration, and other core functions. It also integrates industry needs in areas including taxation and accounting, high-end business services, and modern finance, aiming to build a “comprehensive, one-stop, and shared” legal service platform.

 

Source:Shanghai Municipal Bureau of Justice

 

3.Shanghai Launches Credit Insurance Policy Service Package “Shanghai Credit”

【Keywords: Shanghai Credit, Credit insurance policy】

In an effort to advance trade facilitation and promote application-free and fast-track access to foreign trade supporting policies for enterprises, Shanghai has introduced “Shanghai Credit”, a credit insurance policy service package. The service package is designed to help enterprises effectively mitigate trade risks, explore diversified markets, and access working capital. It establishes comprehensive policy service channels covering export credit insurance, export tax rebates, inclusive financing, policy-based settlements, and consultation and training, thereby supporting enterprises in navigating changes in the external environment.

 

Source:Shanghai Commerce

 

【Culture & Art】

 

1.2025 Shanghai Lavender Festival Kicked off on May 17

【Keywords: Shanghai Lavender Festival]】

 

 

On May 17, the 2025 Shanghai Lavender Festival officially kicked off in Shanghai Lavender Park. With the theme “Purple world, Blooming future”, this year’s festival uses flowers as a cultural bridge, integrating regional cultural and tourism resources and introducing innovative scene-based experiences to offer visitors a comprehensive vacation destination.

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Events/20250514/e604b8a363c645caae890d587eb2819b.html

 

2. “The Human: Immersive Exhibition of Chinese Marine Mythology” Opens

【Keywords: Chinese marine mythology】

 

 

From May 16 to August 18, the China Maritime Museum is presenting “The Human: Immersive Exhibition of Chinese Marine Mythology”. As the first large-scale, original exhibition of Chinese marine mythology, it breaks away from the traditional format of museum relic displays. Drawing on the fantastical nature of myths, the exhibition integrates artistic installations, design pieces, and spatial artworks to complement historical artifacts — together interpreting and bringing to life the cultural essence of Chinese marine mythology.

 

Source:China Maritime Museum

 

【Corporate Activities】

 

1.ResMed E-commerce Operations Landed in Minhang

【Keywords: ResMed】

 

ResMed has recently established its Shanghai e-commerce operations in the Shanghai Elderly Care Technology Industrial Park in Minhang District. This project marks both the first foreign-funded initiative and the first Global Fortune 500 enterprise to set up operations in the park.

 

Source:Minhang Today

 

【Training】

 

1.Lecture on Trends and Key Issues in China’s Consumer Market to Be Held Soon

【Keywords: Consumer market】

 

To assist member enterprises in navigating challenges brought by emerging consumer trends, the Commercial Working Committee of the Shanghai Foreign Investment Association (SHFIA) will invite members of the SHFIA’s Advisory Expert Committee to deliver a special lecture on May 23. The session, titled Latest Trends and Key Issues in China’s Consumer Market, will be shared with member companies of the subcommittee.

 

Source:SHFIA

Q&A

Q:At a recent press conference held by the Shanghai Municipal Government on the fifth anniversary of the North Bund’s development, an official from the Hongkou District responded to a media inquiry on how the district plans to further improve its business environment to strengthen the North Bund’s appeal and capacity for global high-end resource allocation.

A: The CPC Hongkou District Committee and the Hongkou District Government have always attached great importance to the development of a business-friendly environment in Hongkou district, fully implementing the instructions made by the central government and Shanghai municipality. Over the years, Hongkou district has continuously refined its business environment policies from Version 1.0 to 8.0. This year, the district rolled out “Ten Key Initiatives” to further this effort, positioning business environment optimization as a strategic driver in the district’s participation in the latest round of industrial and regional competition, and as a key pillar in enhancing overall regional competitiveness and soft power.

Over the past two years, Hongkou has achieved notable progress in this area. For example, its performance in attracting foreign investment ranked among the top in Shanghai last year. The growth rate of foreign investment reached 35%, also ranking near the top. As of the first quarter of this year, the number of high-standard corporate headquarters in the district had increased by nearly 4.5 times compared with the end of the 13th Five-Year Plan period. In addition to faithfully implementing national and municipal policies, Hongkou has also introduced a series of distinctive initiatives across three key areas.

First, we have adopted a market-oriented approach to respond to real needs and promote barrier-free flow of production factors. For instance, in terms of market access, Hongkou has implemented an integrated “five-in-one” working mechanism with unified requirements for “list disclosure, regulatory coordination, item verification, barrier elimination, and case compilation”, effectively ensuring fair participation by all market players. Centered on the needs throughout the entire lifecycle of enterprises, Hongkou has launched a number of innovative and district-specific services. For example, during the business establishment stage, we launched the “All-in-One Business Opening” initiative, which has been well received by enterprises. In the process of opening a new business, the district ensures “one-time notification, one-stop processing, and one-network coordination”. This initiative has already been promoted citywide. 

Last year alone, over 100 businesses in the North Bund area benefited from this initiative. In addition, to address the financing needs of enterprises — particularly small and medium-sized ones — we creatively launched the “Hongkou Instant Loan” service. This initiative tackles two key pain points: the need for enterprises to compare loan products and interest rates across banks before applying, and the lack of sufficient credit data for banks to assess loan applications. By leveraging the “CreditEase” platform in advance, we have enabled mutual pre-screening and demand-matching by both parties. Therefore, once a financing need arises, loans can be disbursed with a single click. This initiative has received strong recognition from the CPC Shanghai Municipal Committee and Shanghai Municipal Government, and is currently being promoted across the city. Furthermore, more than 50 pro-business policies in Hongkou District can now be enjoyed without the need for application.

Second, we have promoted rule of law to ensure full-chain protection of enterprise rights with legal precision. This is an area in which Hongkou has developed a distinctive approach. We have focused efforts on establishing the North Bund International Legal Service Harbour, which integrates a number of functional platforms including the North Bund Commercial Mediation Center, the Legal Service Center for Overseas Chinese Business Investment and Development, the Intellectual Property Mediation Studio, and the Center for the Prevention and Resolution of Maritime Disputes. These platforms enable enterprises to handle disputes and conflicts in a convenient and cost-effective manner. In addition, the North Bund Out-of-Court Corporate Restructuring Center was officially inaugurated, with the first out-of-court restructuring case successfully concluded in Hongkou this March. Prior to entering bankruptcy proceedings, enterprises can flexibly optimize asset allocation through out-of-court restructuring, leveraging the advantages of Hongkou’s role as an asset management hub. At the same time, we are actively streamlining administrative inspections involving enterprises, requiring all inspections to be conducted under a unified “QR code inspection” system.

Third, we have enhanced internationalization to deepen reform and build a hub for openness and innovation. The key driver is the development of the Collaborative Innovation Zones of the China (Shanghai) Pilot Free Trade Zone. Last year, Hongkou was selected as one of the first batch of “6+1” members in this program. Based on the needs of local enterprises and the district’s industrial strengths, particularly in shipping and finance, Hongkou proposed 14 reform initiatives, bringing successful pilot experiences from the Free Trade Zone into Hongkou. Our goal is to accelerate the scaling of reform outcomes from pilot projects to widespread implementation, delivering greater benefits for regional development.

In addition, Hongkou has made notable strides in reform. The district released the Shipping Center Index and attracted top-tier global financial institutions. For instance, it became home to Amundi Fintech (Shanghai) Co., Ltd, the first wholly foreign-owned fintech company in China. In the field of green and low-carbon development, Hongkou has also undertaken extensive exploration. Last year, the city designated 14 districts to develop specialized industries, and Hongkou was tasked with developing the green and low-carbon services sector. A series of reform and innovation efforts have been carried out in areas such as carbon measurement, carbon trading, and carbon certification. Building on the district’s distinctive needs and strengths, further efforts are underway to deepen innovation and exploration.

Source:Information Office of Shanghai Municipal People’s Government

https://www.shio.gov.cn/TrueCMS/shxwbgs/2025n_5y_wdsl/content/fd6aa20a-6f60-45ad-b694-0ac93067cc23.html

Expert Perspective

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

 

By Zhang Zhewen (AnJie Broad Law Firm)

 

[Continued from the Previous Issue]

I. Overview of the IDC Industry

Based on the ownership structure of underlying assets, Internet Data Center (IDC) operations can be broadly categorized into the following business models:

1.Asset-Heavy Models

·Self-built Data Center Model

Under this model, enterprises invest directly — either through self-owned capital or external financing — to acquire land and construct data centers and supporting infrastructure (including power supply, cooling systems, and security facilities). They also obtain the necessary IDC operating licenses independently. While this model offers a high degree of autonomy, it requires substantial upfront investment and involves complex regulatory procedures, making it a typical asset-heavy approach.

·REITs Model

In this model, mature IDC assets (such as data centers and supporting utilities) are packaged into Real Estate Investment Trusts (REITs) and publicly offered on capital markets. This enables asset offloading and capital recovery, while operators retain the right to manage the project and earn trustee or management income.

2.Asset-light Models

·Leased Data Center Model

This approach involves leasing data center facilities and infrastructure (including power, cooling, and network bandwidth) from third-party providers. As an asset-light strategy, it eliminates the need for significant capital expenditure and long construction timelines associated with building facilities. Operators focus on customer service, operations management, and resource integration. They acquire usage rights through rental payments and can flexibly allocate cabinets, bandwidth, and other resources to achieve rapid business expansion.

·Third-party Operations Model

In this model, enterprises leverage their brand reputation, management expertise, operational experience, and customer base to provide operational services, while capital investment and asset ownership (including data centers and supporting facilities) are undertaken by partnering entities. The enterprise acts as a trustee, earning management fees and a share of revenue. A typical example of this model is the Hotel Operations Management Model (HOMM) approach adopted by Dr. Peng Group.

The above classifications represent the commonly observed IDC business models. In practice, enterprises often adopt hybrid or more complex structures — balancing asset-heavy and asset-light elements — depending on their development strategies and operational needs.

[To be Continued]