Issue 103

Shanghai Weekly Bulletin

No.4,July 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.Seven Authorities Unveil Twelve Measures to Encourage Reinvestment in China by Foreign-funded Enterprises

【Keyword: Foreign-funded enterprises】

 

Recently, the National Development and Reform Commission (NDRC), together with six other central government departments, jointly issued the Notice on Implementing Several Measures to Encourage Domestic Reinvestment by Foreign-funded Enterprises. The document applies to foreign-funded enterprises that reinvest within China using undistributed profits or profits legally distributed to overseas investors. The notice calls for local authorities to establish a project database for reinvestment by foreign-funded enterprises. Eligible projects may enjoy supportive policy benefits.

 

Source:NDRC

https://www.ndrc.gov.cn/xwdt/tzgg/202507/t20250718_1399286.html

 

2.MOFCOM Releases Notice to Implement Tax Credit Policy for Foreign Investors Using Distributed Profits for Direct Investment

【Keywords: Foreign investors, Tax credit】

 

The General Office of the Ministry of Commerce (MOFCOM) recently released the Notice on Effectively Implementing the Tax Credit Policy for Foreign Investors Who Use Distributed Profits for Direct Investment. The notice outlines five key tasks: establishing and improving work mechanisms, strictly fulfilling review responsibilities, providing consultation services, strengthening supervision through close collaboration, and closely monitoring policy effectiveness.

 

Source:MOFCOM

https://www.mofcom.gov.cn/zwgk/zcfb/art/2025/art_b0b9f341f22c41bdbcd9820a7e98b205.html

 

【Shanghai】

 

1.Shanghai Launches Nine Measures to Support High-quality Internet Content Creation

【Keywords: Internet, Quality content】

 

The Publicity Department and the Cyberspace Administration of the CPC Shanghai Municipal Committee recently introduced the Shanghai’s Several Measures to Support the Creation of High-quality Internet Content. The document outlines nine supporting policies, including building a cluster of premium internet content creation, holding a series of high-profile branded events, and providing incentives for high-quality content creation.

 

Source:International Services Shanghai 

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20250716/ab015b03024340439165f3fda8b1972c.html

 

2.Shanghai to Develop Changxing Island into a World-class Modern Shipbuilding Base

【Keywords: Changxing Island, Shipbuilding base】

 

The General Office of the Shanghai Municipal People’s Government has released the Shanghai’s Implementation Plan for Building a World-class Modern Shipbuilding Base on Changxing Island (2025–2027). The plan aims for the island’s shipbuilding and marine engineering equipment industry to exceed RMB 120 billion by 2027, with advanced vessels — such as liquefied gas carriers and dual-fuel container ships — accounting for 80% of production. It also envisions a world-leading industrial cluster for advanced marine engineering equipment manufacturing.

 

Source:Shanghai Release

3.SMPA Unveils 12 Core Tasks to Foster Healthy Development of Platform-based Pharmaceutical Economy

【Keywords: Pharmaceuticals, Online sales】

 

The Shanghai Municipal Medical Products Administration (SMPA) recently issued the Action Plan for Strengthening Supervision and Management of Online Pharmaceutical Sales (2025–2027). The plan aims to further regulate the online sales market of pharmaceuticals, medical devices, and cosmetics, foster a multi-stakeholder governance framework featuring effective self-regulation by platforms and merchants alongside efficient government oversight, promote the sound and orderly development of the platform economy, and ensure the quality and safety of pharmaceuticals.

 

Source:SMPA

 

4.Lingang Special Area Expands Scope of Financial Leasing Pilot Projects

【Keywords: Lingang Special Area, Financial leasing】

 

Recently, a policy launch ceremony was held in the Lingang Special Area to promote high-standard institutional opening-up and support the high-quality development of the leasing industry. At the event, the Pilot Program for Expanding the Business Scope of Financial Leasing Project Companies in the Lingang Special Area was officially released. The new policy expands the scope of eligible assets of financial leasing project companies to include four categories of equipment: new energy, power batteries, intelligent manufacturing, and industrial machine tools.

 

Source:Shanghai Lin-gang

 

Q&A

 

Q: At a press conference held by the State Council Information Office to brief the media on China’s import and export performance in the first half of 2025, an official from the General Administration of Customs (GAC) responded to reporter’s question — In the first half of the year, China’s foreign trade maintained steady growth despite a complex external environment, which would not have been possible without strong policy support. What specific measures has the GAC taken to enhance trade facilitation and optimize the business environment? In what ways have these efforts provided tangible benefits for enterprises?

 

A: Led by the GAC and jointly carried out with 20 government departments and 25 pilot cities, a special campaign to facilitate cross-border trade was launched in April this year. The initiative focuses on the implementation of 29 targeted measures aimed at fostering a more efficient, streamlined, and transparent business environment at ports. These efforts are designed to motivate market players and support the steady growth of foreign trade. So far, the campaign has produced positive results, as reflected in the following aspects:

Policy support has been strengthened. We have responded precisely to the needs of enterprises and promoted the development of emerging business models. The product catalog for bonded repair operations in comprehensive bonded zones has been refined and adjusted, and pilot programs have been launched to support eligible bonded repair projects outside these zones. In the first half of the year, the total import and export value of bonded repair operations nationwide reached RMB 256.99 billion, representing a year-on-year increase of 7.5%. Additionally, we have also expanded the pilot program for the inspection model of reusable lithium battery packaging and launched a pilot for classified regulation of “dual-use” products that serve both medicinal and food purposes.

Cross-border logistics have been accelerated. We have optimized regulatory models and simplified customs clearance procedures, vigorously advancing rapid customs clearance services for rail freight and continuously improving operational efficiency at air ports. Efforts have been made to strengthen monitoring and coordination of container throughput at key seaports, while regulatory innovations such as “direct pick-up at berth”, “immediate loading upon arrival”, and “departure confirmation” for import and export cargo have been further deepened. We have also actively promoted the adoption of unified waybills and containerized transport in rail-sea intermodal operations. In the first half of the year, China’s inbound and outbound waterway container throughput reached 67.41 million TEUs, marking an 11.3% increase.

The trade environment is more favorable. We have vigorously promoted international cooperation on cross-border trade facilitation by jointly establishing the global “Smart Customs” online cooperation platform with the World Customs Organization, which has now been joined by customs authorities from 141 countries and regions. Leveraging the international trade “Single Window”, we have implemented bidirectional “single submission, dual declarations” for import and export goods, enabled online exchange and network verification of electronic certificates, and advanced real-time information updates and sharing. The cross-border connectivity of the “Single Window” continues to expand.

The customs clearance cost is reduced. We have deepened joint incentives for Authorized Economic Operator (AEO) enterprises, providing 3,776 instances of preferential support such as financing credit, financing guarantees, and export credit insurance. In addition, the expansion of “domestic-foreign trade cargo on the same vessel” and broader efforts to reduce national logistics costs have been initiated. 

Here, I would also like to introduce to our media friends an initiative closely related to daily life — the “one-stop platform” for inbound and outbound mail services launched by the GAC. This platform helps users “get things done efficiently in one go”. Accessible via web portal, mobile app, and WeChat mini program, it allows users to check the clearance status of their mail, complete declarations, pay taxes, and apply for tax refunds. This will significantly shorten processing time and reduce costs previously incurred through third-party services. We encourage everyone to use this service when needed and to provide valuable feedback.

Going forward, we will continue to vigorously advance the special campaign on cross-border trade facilitation. Our focus will be on ensuring the precise implementation of policy measures, strengthening performance evaluation and the replication of successful practices, and continuously optimizing the business environment. These efforts aim to deepen and solidify the campaign’s impact, further enhancing the sense of gain and satisfaction among enterprises.

 

Source:State Council Information Office

http://www.scio.gov.cn/live/2025/36709/tw/

 

Expert Perspective

 

Foreign Investment Access Regime in China’s Cell and Gene Therapy Industry: Policy Analysis, Industry Implications and Compliance Recommendations

 

By Zhang Qixiang, Cheng Junge, Zhang Menglin, and Deng Zike (Zhong Lun Law Firm)

 

[Continued from the Previous Issue]

IV. Multifaceted Impacts of Foreign Investment Liberalization on China’s CGT Sector and Compliance Recommendations

(I) A New Landscape of Capital Flow: Facilitating Foreign Entry and Broadening Financing Channels

Under the newly launched pilot policies, foreign investors now have the opportunity to invest in China’s stem cell and gene diagnosis and therapy industry, while domestic biopharmaceutical companies can attract foreign investment and deepen international cooperation. This is expected to further advance the development of China’s CGT-related upstream and downstream industries.

We recommend that domestic CGT enterprises closely monitor local developments in foreign investment liberalization and keep abreast of policy trends in pilot regions. Enterprises should also review the status of existing entities within their group and consider optimizing their corporate structures — for example, by establishing new affiliates in pilot zones, relocating existing operations to such zones, or adjusting business functions across group companies — to better accommodate foreign investment. At the same time, it is recommended that CGT companies evaluate the pros and cons of different foreign investment participation plans based on their own situation, such as direct equity investment, joint ventures with foreign entities in pilot regions, mergers and acquisitions, or innovative business development (BD) collaborations. These approaches may enhance corporate capital structure and help identify the most suitable growth path.

(II) Human Genetic Resources Administration: Compliance Requirements in International Collaboration 

CGT business may involve the collection, preservation, or export of human genetic resources (HGR) in China. According to the Biosecurity Law of the People’s Republic of China, the Regulations on the Administration of Human Genetic Resources, and the Implementation Rules thereof, genetic materials such as organs, tissues, cells, etc. containing human genomes, genes and other genetic materials, as well as information materials such as human genes and genome data (excluding clinical data, imaging data, protein data and metabolic data) generated by using HGR materials are all HGR. Foreign organizations, institutions established or actually controlled by foreign organizations or individuals (hereinafter referred to as “foreign parties”), and foreign individuals are prohibited from collecting or preserving China’s HGR within the territory of China, and from providing China’s HGR to entities outside the country. If a foreign party intends to use China’s HGR for scientific research, it must do so in cooperation with Chinese scientific research institutions, universities, medical institutions, or enterprises, and must obtain administrative approval or file for record in accordance with the relevant regulations. The Pilot Notice also expressly requires that pilot enterprises comply with all HGR supervision requirements. Therefore, foreign-funded enterprises intending to participate in the pilot scheme — and which may be classified as foreign parties — should actively fulfill relevant obligations such as licensing, filing, or prior reporting for international scientific collaboration and establish robust internal compliance systems (including standard operating procedures, or SOPs).

(III) CGT Clinical Trials Initiated by Researchers: Regulatory Boundaries for Foreign Investment

Depending on the initiator and purpose, medical clinical trials are mainly divided into two types: clinical trials initiated by researchers (usually doctors, scientists or academic institutions) (referred to as IIT) are usually aimed at exploring new scientific problems, verifying new hypotheses or evaluating improvements in existing treatments, without the purpose of “product registration, marketing and production”; drug clinical trials initiated by pharmaceutical companies (referred to as IST) are mainly aimed at supporting product registration and marketing.

The Pilot Notice specifies that foreign-funded enterprises may engage in CGT business only if they are “intended for product registration, marketing and production”. Therefore, to avoid potential compliance risks, it is advised that relevant companies refrain from introducing foreign investment or conducting investigator-initiated CGT clinical trials before the detailed implementation rules are issued. Alternatively, before introducing foreign investment or conducting such trials, companies should proactively communicate with the regulatory authorities and obtain clear responses from them to ensure compliance with regulations.

 

One Week in Shanghai

 

【Latest News】

 

1.Certificating Ceremony for the 41st batch of MNC Regional Headquarters and R&D Centers and Signing Ceremony for Projects with Foreign Investment Held

【Keywords: MNC, Foreign investment】

 

The Certificating Ceremony for the 41st batch of MNC Regional Headquarters and R&D Centers and Signing Ceremony for Foreign Investment Projects were recently held in Shanghai. A total of 30 regional headquarters and 15 foreign-funded R&D centers were acknowledged and awarded certificates. 56 foreign investment projects were signed, with a total investment value of approximately USD 3.68 billion, of which 33 projects were signed on site.

 

Source:Shanghai Commerce

 

2.Shanghai Bilingual “City Walk” Map Offers a Unique Journey Through the City’s Evolving Landscape

【Keywords: Urban renewal, “City Walk” Map】

Recently, the new Shanghai “City Walk” Map was released in both Chinese and English. The map highlights Shanghai’s unique charm through six themed routes: River and Creek, Historic Zones, City Parks, Community Life Circle, Industrial Heritage, and Cultural and Sports Spaces — offering both international and domestic travelers a vivid experience of the city’s evolving landscape and vibrant renewal through time.

 

Source:Shanghai Release

 

3.Applications open for 2025 “Shanghai Science & Technology 35 Under 35” Program

【Keywords: Science & technology young talents】

 

The 2025 “Shanghai Science & Technology 35 Under 35” Program has officially launched. The initiative seeks to identify 35 winners and 15 nominated awardees from strategic domains including global frontiers of science and technology, national economic development, major national needs, and public health and safety.

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Latest-TalentsinShanghai/20250716/bde377e97526455391c3de13c338b0e4.html

 

【Corporate Activities】

 

1.Evonik Opens its Largest Global Center for Medical Device Applications in Shanghai

【Keyword: Evonik】

 

Germany’s Evonik Industries AG has officially opened its largest global center for medical device applications in Xinzhuang Industrial Park, Minhang district. The center is designed to serve clients across Asia and will support customers overcome challenges in developing high-quality, innovative medical solutions.

 

Source:Today Minhang

 

2.Lingang Special Area Signs Strategic Cooperation Agreement with SBI (China)

【Keyword: SBI】

 

The Lingang Special Area Administrative Committee recently held discussions and signed a strategic cooperation agreement with SBI (China) Co Ltd, a subsidiary of Japan’s SBI Group. Under the agreement, the two parties will jointly establish the Lin-gang Qihang SBI Venture Capital Fund, with an initial fund size exceeding RMB 100 million. The fund is committed to providing early-stage investments for internationalized small and medium-sized enterprises.

 

Source: Shanghai Lin-gang

 

【Competitive Event】

 

1.Shanghai to Host 2025 World Rowing Championships in September

【Keywords: World Rowing Championships】

 

The 2025 World Rowing Championships will take place in Shanghai from September 21 to 28. The event will welcome top athletes, along with coaches and technical officials from more than 60 countries and regions worldwide. More than 1,200 athletes are expected to compete. As the highest-level international sporting event to be held in Shanghai this year, the championship also marks the first time this premier global rowing competition will be hosted in China.

 

Source:Shanghai Release

 

【Forum & Exhibition】

 

1.2025 World Artificial Intelligence Conference to Kick Off on July 26

【Keyword: WAIC】

The 2025 World Artificial Intelligence Conference (WAIC) will be held from July 26 to 28 at the Shanghai World Expo Center, the Shanghai World Expo Exhibition and Convention Center, and the West Bund in Xuhui. Centered on the theme “Global Solidarity in the AI Era”, the conference features five major sections: forums, exhibitions, competitions and awards, application experiences, and innovation incubation. It will present the latest advancements in AI technology, industrial trends, and global governance practices.

 

Source:International Services Shanghai

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20250714/b0d9a7d1f00e4805ab23c5c87f4682bc.html

 

【Culture & Art】

 

1.“The Classic of Mountains and Seas - Amazing Zhulong ” Immersive Exhibition Debuts in Shanghai

【Keywords: The Classic of Mountains and Seas, Amazing Zhulong】

The world’s first immersive glasses-free 3D installation art exhibition, inspired by mythical creatures from the ancient Chinese folklore The Classic of Mountains and Seas, will run at the China Art Museum, Shanghai, from July 15 to October 8. Featuring cutting-edge digital technologies such as glasses-free 3D, holographic lasers, and interactive sensors, the exhibition offers a creative reinterpretation of traditional Chinese culture.

 

Source:China Art Museum

 

2.“A Walk on the Wild Side: Artworks from the Collection de I’Art Brut and Elsewhere” Exhibition Opens

【Keyword: Lausanne】

From July 12 to October 12, the Power Station of Art presents the exhibition A Walk on the Wild Side: Artworks from the Collection de I’Art Brut and Elsewhere. The exhibition features 259 works by 52 artists, including selections from the Collection de l'Art Brut in Lausanne and works by four self-taught Chinese artists.

 

Source:Power Station of Art