Issue 96

Shanghai Weekly Bulletin

No.1,June 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 Grants Visa-free Entry to Nationals of Saudi Arabia and Three Other Countries

【Keywords: Saudi Arabia, Oman, Kuwait, Bahrain, Visa-free policy】

 

In an effort to further facilitate cross-border travel and exchanges, China has decided to expand its visa-free entry policy. From June 9, 2025, to June 8, 2026, holders of ordinary passports from Saudi Arabia, Oman, Kuwait, and Bahrain will be allowed to enter China without a visa for the purpose of business, tourism, family or friend visits, exchange and transit, for stays of up to 30 days. Travelers who do not meet the visa exemption requirements are still required to obtain a visa prior to entry.

 

Source:Consular Express

 

2.Tax Refund Guide for Overseas Travelers Now Available in Multiple Languages

 

【Keywords: Tax refund for overseas travelers】

The State Taxation Administration (STA) has recently released the Guide to Tax Refunds for Overseas Travelers. The guide is now available in 14 languages, including Chinese, English, Arabic, Russian, French, Spanish, German, Indonesian, Japanese, and Korean.

 

Source:STA

https://www.chinatax.gov.cn/chinatax/n810214/c102374/c102375d/c5240753/content.html

 

3.Guideline to Improve Modern Corporate Systems with Chinese Features Released

【Keywords: Modern corporate systems with Chinese features】

 

The General Office of the CPC Central Committee and the General Office of the State Council have jointly issued the Guideline to Improve Modern Corporate Systems with Chinese Features. The document outlines measures to optimize corporate governance structure and scientific management, enhance incentive mechanisms for innovation within enterprises, build sound systems for corporate social responsibility and culture, and refine the comprehensive regulatory and service framework for corporates. 

 

Source:Website of the Chinese Government

https://www.gov.cn/zhengce/202505/content_7025304.htm

 

4.MOFCOM Issues Plan to Deepen Reform and Innovation in State-level Economic and Technological Development Zones

【Keywords: National Economic and Technological Development Zones】

 

The Ministry of Commerce (MOFCOM) has recently issued the Work Plan on Deepening Reform and Innovation in State-level Economic and Technological Development Zones to Promote High-quality Development through High-standard Opening-up. The work plan outlines 16 policy measures across four key areas, namely, developing new quality productive forces based on local conditions, building a higher-standard open economy, deepening reform of the management system, and ensuring the support of factors of productions.

 

Source:MOFCOM

https://wzs.mofcom.gov.cn/zcfb/art/2025/art_da2131cdc5fd4cc9987e697c6be9f40f.html

 

【Shanghai】

 

1.Shanghai Development Planning Regulations to Take Effect Soon

【Keywords: Shanghai Development Planning Regulations】

 

The Shanghai Development Planning Regulations has been released and will come into effect on July 1, 2025. The regulations consist of six chapters and 40 articles, covering general provisions, coordination, formulation, implementation and supervision of planning, and supplementary provisions.

 

Source:Shanghai Municipal People’s Congress

https://www.shrd.gov.cn/n8347/n8483/u1ai274694.html

 

2.Shanghai Launches Pilot Program for Real Estate Trust Registration

【Keywords: Real estate, Trust registration】

 

On May 27, the Financial Regulatory Office of the CPC Shanghai Committee and five other departments jointly issued the Notice on Launching the Pilot Program for Real Estate Trust Registration. The notice includes four key sections — it defines key terms such as real estate trusts and real estate trust registration, and clarifies the scope of the pilot; outlines compliance requirements for engaging in real estate trust business; specifies the procedural steps for handling related matters; and improves supporting mechanisms to ensure effective implementation.

 

Source:Shanghai Finance

 

One Week in Shanghai

 

【Latest News】

 

1.Global Mayors Dialogue · Shanghai and 2025 Shanghai International Friendship Cities Cooperation Forum Held

【Keywords: Shanghai International Friendship Cities Cooperation Forum】

 

On May 29, the Global Mayors Dialogue · Shanghai and the 2025 Shanghai International Friendship Cities Cooperation Forum officially opened in Shanghai. With the theme Innovation for Green Growth — Cities for Future, the forum had two sessions, namely, “urban sustainable development empowered by green and low-carbon strategies” and “youth vitality inspiring urban innovation for the future”. Around 100 guests from 26 friendship cities across 22 countries attended the event.

 

Source:Shanghai Release

 

2.Yangtze River Delta Out-of-Court Restructuring Center Officially Established

【Keywords: Yangtze River Delta, Out-of-court restructuring】

 

The Yangtze River Delta Out-of-Court Restructuring Center was recently inaugurated. The center aims to explore innovative mechanisms for out-of-court restructuring, supporting financially distressed but operationally viable market entities in overcoming difficulties and achieving revitalization. It is expected to play a positive role in improving the law-based business environment.

 

Source:Shanghai Foreign Investment Association

 

【Culture & Art】

 

1.“Precious Rarities: Ming and Qing Rhinoceros Horn Carvings in the Shanghai Museum” Opens to the Public

【Keywords: Ming and Qing rhinoceros horn carvings】

On May 30, the exhibition Precious Rarities: Ming and Qing Rhinoceros Horn Carvings in the Shanghai Museum officially opened at the Shanghai Museum on People’s Square. The exhibition presents over 100 carefully selected rhinoceros horn artifacts from the museum’s collection. Through 11 thematic sections — including “Natural Elegance, Uncarved Beauty”, “Grace of Ancient Charm”, “Floral Grace and Leafy Poise”, and “Lotus Posture, Reflected Shadows” — this exhibition guides visitors on a journey from the natural beauty of raw rhinoceros horn to the masterful craftsmanship of ancient artisans. Reflecting both mythical legends and the refined aesthetic tastes of scholars in the Ming and Qing dynasties, these artifacts offer visitors a multi-faceted view of the unique charm and profound cultural nourishment of Ming and Qing rhinoceros horn carvings.

 

Source:Shanghai Museum

 

【Corporate Activities】

 

1.Adidas Originals Flagship Store Opens in Xuhui

【Keyword: Adidas】

 

German sportswear brand Adidas has recently opened its Originals flagship store at 322 Anfu Road in Xuhui District. This marks not only the first international sports brand to open a store in this area, but also the first global showcase for the Adidas Originals series in the city.

 

Source:Shanghai Xuhui

 

Q&A

 

Q1: At a regular State Council policy briefing hosted by the State Council Information Office, an official from the Ministry of Commerce responded to a media inquiry regarding reform and innovation measures for state-level economic and technological development zones (SETDZs) — Over the past 40 years, the number of SETDZs has grown to 232. What achievements have been made during this period, and what key measures will the Ministry of Commerce take to promote high-quality development of these zones?

A1: Over the past four decades, SETDZs have upheld the CPC’s overall leadership, emerging as a product of China’s reform and opening-up, serving as testing grounds for reform initiatives, and growing stronger through continued opening-up efforts. Since the 18th National Congress of the CPC, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, SETDZs have continuously advanced high-standard opening-up, driven in-depth reforms, and promoted high-quality development, achieving steady progress across various fields. The key achievements can be summarized as follows:

First, we have vigorously developed an open economy and further cemented the leading position of SETDZs in promoting foreign trade and investment. As mentioned earlier, SETDZs serve as pioneers in China’s foreign trade and investment landscape. These zones have taken the lead and deeply participated in international division of labor, leveraging both domestic and international markets and resources. Their capacity for international cooperation and competitiveness has continued to grow. Currently, among the 232 SETDZs nationwide, there are more than 60,000 foreign-funded enterprises and 99,000 foreign trade enterprises with import and export records. In 2024, SETDZs saw paid-in foreign investment of USD 27.2 billion and recorded RMB 10.7 trillion in total imports and exports, accounting for 23.4% and 24.5% of the national total respectively. For example, Suzhou Industrial Park, a well-known SETDZ, ranked first nationwide in attracting foreign investment, with paid-in foreign capital of USD 2 billion in 2024. Another example is the Yangpu Development Zone in Hainan Province, which has seen rapid growth in foreign investment following the establishment of the Hainan Free Trade Port. In 2024, foreign investment in the zone soared to 13 times that of 2018, the year the free trade port was established. Among the top 10 SETDZs in terms of imports and exports, some are located in first-tier cities like Beijing, Shanghai, and Guangzhou, while others are based in county-level cities such as Kunshan in Jiangsu Province and Yiwu in Zhejiang Province. For instance, the Kunshan Economic and Technological Development Zone recorded import and export volume of over RMB 570 billion in 2024, highlighting its strong outward-oriented and open nature.

Second, we have accelerated the development of new quality productive forces, with significantly enhanced economic strength and supporting capabilities. A large number of domestic and international enterprises have invested, operated, and pursued innovation in SETDZs, including both industry-leading companies and specialized, sophisticated, distinctive, and innovative small and medium-sized enterprises. Over time, a vast, well-structured, and fully integrated industrial ecosystem has taken shape, covering key sectors such as electronic information, high-end equipment manufacturing, automobiles, petrochemicals, new energy and materials. Currently, SETDZs are home to more than 4.9 million market entities, including 73,000 industrial enterprises above designated size and 85,000 high-tech enterprises. More than 15,000 R&D institutions at the provincial level and above have also been established within the zones. In 2024, SETDZs recorded a combined regional GDP of RMB 16.9 trillion. Enterprises above designated size in four sectors — including those in industry and services — provided employment for over 24 million people.

Third, we have supported coordinated regional development and promoted economic growth in less developed areas. SETDZs have leveraged their comparative advantages to strengthen industrial transfer and collaboration between the zones, expanding the development hinterland of coastal regions and boosting growth momentum in less developed areas. In 2024, SETDZs in central, western, and northeastern China achieved a combined regional GDP of RMB 6.65 trillion and an industrial output of RMB 3.73 trillion — equivalent to 67% and 74% of the levels in eastern SETDZs respectively. Meanwhile, many SETDZs have actively contributed to supporting Xinjiang, Tibet, and border regions, providing strong backing for building a regionally coordinated, high-quality development landscape.

Fourth, we have innovated governance systems and fostered a world-class business environment. SETDZs have continued to develop market-oriented, professional, streamlined, and efficient systems and mechanisms for talent selection and employment, operations and management, and promotion of trade and investment. Currently, around 60% of SETDZs operate with no more than 10 internal departments, offering full-process, high-quality, and efficient administrative services to enterprises. At the same time, many SETDZs have established integrated development frameworks with over 30 pilot free trade zone areas and more than 60 comprehensive bonded zones, creating synergistic advantages as open platforms. These efforts have yielded institutional innovations in key areas such as factor mobility, rights protection, and market governance.

Looking ahead, the Ministry of Commerce will focus on the following three key areas. First, it will take the lead in coordinating the implementation of the policy measures outlined in the Work Plan, encouraging local governments and relevant departments to introduce supporting initiatives. Greater support will be provided in areas such as factor allocation, pilot reform assignments, and the delegation of administrative approval authority for economic matters. Second, efforts will be made to further develop the “Invest in China — Choose Economic and Technological Development Zones” initiative. SETDZs will be encouraged to explore innovative practices, enhance the quality and effectiveness of investment promotion, diversify sources of foreign investment, and encourage reinvestment by foreign-funded enterprises in China. Third, we will guide SETDZs in establishing a standardized and efficient modern zone management system with clear rights and responsibilities, improving public service capabilities and strengthening market-oriented operations. In addition, a dynamic management mechanism will be refined to enhance full-cycle management.

 

Source:State Council Information Office

http://www.scio.gov.cn/live/2025/36257/tw/

 

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]

II. Business Licenses and Industry Access Regulations

2. Infrastructure Access

Given the dual nature of Internet Data Center (IDC) operations — encompassing both real estate and telecommunications services — companies must fulfill the following requirements: 

(1) During the construction phase, enterprises must comply with relevant laws and regulations by completing all necessary filings, permits, or approvals typically required for general industrial real estate projects. These include procedures related to project investment, energy efficiency review, land use planning, construction planning, engineering and construction permits, environmental impact assessment, and fire control acceptance tests.

(2) Prior to commencement of operations, enterprises are required — pursuant to the Notice of the Ministry of Industry and Information Technology on Cleaning up and Regulating the Internet Access Service Market — to apply to MIIT-designated testing institutions for technical assessments. These assessments cover areas such as the ICP/IP address/domain name information filing system, enterprise access resource management platform, information security management system, data center operational safety, and network security. A formal assessment report must be obtained before operations begin. Enterprises that operate without passing the required assessments may face consequences including mandatory rectification, failure in annual inspections, inclusion in enterprise credit risk records, and non-renewal of telecommunications licenses upon expiry.

III. Foreign Investment Access

1. Foreign Investment Negative List

According to the Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition), China permits foreign investment in telecommunications services only within the scope committed upon accession to the WTO. For value-added telecommunications services, the foreign equity ratio shall not exceed 50%, except for specific services such as e-commerce, domestic multiparty communication, store-and-forward, and call centers. For basic telecommunications services, Chinese parties must hold a controlling stake. As IDC services are not included in the scope of telecommunications services that China has committed to open upon WTO accession, IDC operations have, in principle, long remained closed to foreign investment.

[To be Continued]