Laws and Regulations

 

National

 

1. China Revises the Regulations on the Entry and Exit Administration of Foreigners

[Keyword: Foreigners, Entry-exit]

 

Recently, the Decision of the State Council on Amending the Regulations on the Entry and Exit Administration of Foreigners in the People’s Republic of China was released. The decision introduces two key amendments to the Regulations on the Entry and Exit Administration of Foreigners in the People’s Republic of China, including the addition of the new “K visa” category designated for foreign young sci-tech talents entering the country. It will take effect on October 1, 2025.

 

Source: Website of the Chinese Government

https://www.gov.cn/zhengce/content/202508/content_7036507.htm

 

2.Announcement on the Entry into Force and Implementation of the Tax Treaty between China and Cameroon and the Protocol to the Tax Treaty between China and Brazil Released

[Keywords: Cameroon, Brazil, Taxation]

 

On August 11, the State Taxation Administration (STA) released an announcement stating that the Agreement between the Government of the People’s Republic of China and the Government of the Republic of Cameroon for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance entered into force on July 26, 2025, and shall apply to income derived for taxable years beginning on or after January 1, 2026. Meanwhile, the Protocol to Amend the Agreement between the Government of the People’s Republic of China and the Government of the Federative Republic of Brazil for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and the Protocol, Signed in Beijing on August 5, 1991, entered into force on June 14, 2025. The Protocol shall apply to taxes withheld at source on payments made or credited on or after January 1, 2026.

 

Source: STA

https://fgk.chinatax.gov.cn/zcfgk/c100012/c5242318/content.html

 

3.Regulations for the Implementation of the Value-added Tax Law (Draft for Comments) Released for Public Comment

[Keywords: Value-added tax]

 

The Ministry of Finance and the STA have recently released the Regulations for the Implementation of the Value-added Tax Law of the People's Republic of China (Draft for Comments) for public consultation. The draft consists of six chapters and 57 articles, covering general provisions, tax rates, taxable amounts, tax incentives, tax collection and administration, and supplementary provisions. The deadline for submitting feedback is September 10, 2025.

 

Source: Ministry of Finance

https://szs.mof.gov.cn/gongzuodongtai/202508/t20250811_3969788.htm

 

Shanghai

 

1. Revised Measures for the Administration of Shanghai Sci-tech Innovation Vouchers Released

[Keywords: Sci-tech innovation vouchers]

 

The Shanghai Municipal Science and Technology Commission (STCSM) and the Shanghai Municipal Finance Bureau have recently released the revised Measures for the Administration of Shanghai Sci-tech Innovation Vouchers. The revisions focus on four main areas: standardizing full-process management, refining the scope of policy coverage, strengthening the management of service institutions, and enhancing regular oversight. The revised Measures will take effect on September 1, 2025, and remain valid until August 31, 2030.

 

Source: STCSM

https://stcsm.sh.gov.cn/zwgk/kjzc/zcwj/kwzcxwj/20250813/9e1982a4cd544e89b0ffddb1a108d5b6.html

 

2.Shanghai Deepens Carbon Market Reform

[Keywords: Carbon market]

 

The General Office of the Shanghai Municipal People’s Government has recently issued the Action Plan for Deepening Reform of Shanghai’s Carbon Market (2026–2030). The plan focuses on three major initiatives: improving the quality and efficiency of the carbon emissions trading market, promoting and incentivizing voluntary greenhouse gas emission reductions, and enhancing innovation capacity in the carbon market. A total of 16 key reform measures have been outlined.

 

Source: Shanghai Municipal People’s Government

https://www.shanghai.gov.cn/nw12344/20250814/53e2be9dc09a47c6988e86cc88cfe7b9.html

 

3.Shanghai Lingang Accelerates Development of International Data Processing Hub to Foster New Models of Data Outbound Services

[Keywords: International data]

 

Lingang special Area of Shanghai has recently released the Plan for Building an International Data Processing Hub in Lingang Special Area and simultaneously launched the development of the Lingang International Data Processing Hub. The plan outlines 15 initiatives across five dimensions, namely, deepening alignment with international data rules and industrial cooperation, improving the innovative management system for the international data processing hub, fostering diverse international data service models, strengthening the infrastructure foundation for global data services, and building a high-quality ecosystem for international data service development.

 

Source: Shanghai Lingang

 

Q&A

 

Officials from the Ministry of Justice, Ministry of Foreign Affairs, Ministry of Public Security, and National Immigration Administration Answer Questions on the Decision of the State Council on Amending the Regulations of the People’s Republic of China on the Administration of the Entry and Exit of Foreigners (Excerpt)

Q

What are the eligibility criteria and requirements for applying for a K visa? What supporting documents do the applicants need to provide?

A

The K visa is issued to foreign young sci-tech talents who either (i) have graduated from well-recognized universities or research institutes in China or abroad with a graduation/degree certificate (bachelor’s degree or above) in science, technology, engineering, or mathematics, or (ii) have been engaged in relevant teaching or science research work at such institutions. The detailed conditions and requirements will be published on the websites of Chinese embassies and consulates abroad.

Q

How does the K visa differ from existing visa categories?

A

Compared with the current 12 categories of ordinary visas, the K visa will provide more conveniences in terms of number of entries, validity period, and duration of stay. Holders may, upon entry, engage in exchanges in education, science and technology, and culture, as well as in entrepreneurship and business activities. The K visa sets specific requirements only on age and educational background or work experience, without requiring sponsorship or an invitation from a Chinese employer or institution. The application process will also be more streamlined.

 

Source: Ministry of Justice

 

Expert Perspective

 

Study on Shareholder Qualification and Equity Transfer Issues in Foreign-funded Enterprises

By Cai Shuo, Xing Jingyu, and Tian Yaqi (Beijing Jincheng Tongda& Neal Law Firm)

[Continued from the Previous Issue]

IV. Practical Recommendations for Risk Mitigation

(1) Confirm Shareholder Identity in Writing and Promptly Complete Business Change Registration

In the process of restructuring foreign-funded enterprises, if there are internal conflicts among shareholders, original foreign shareholders may refuse to recognize the identity of Chinese shareholders. To address this, it is advisable to initiate communication and negotiation mechanisms at an early stage and, where necessary, assert rights through legal channels to ensure the smooth progress of the restructuring. Chinese shareholders may consider signing written agreements during the restructuring process to confirm shareholder identity and capital contribution methods. After completing internal confirmation of shareholder identity and revising the articles of association, the enterprise should promptly apply to the market regulation authorities for industrial and commercial change registration, and update information such as shareholder details, methods of capital contribution, and shareholding ratios. Although business registration involves only a formal review, it carries significant legal implications for public disclosure. It helps protect shareholders’ lawful rights and interests, while safeguarding third parties’ legitimate reliance on the company’s equity structure.

(2) Review Whether the Equity Transfer has Undergone Approval or Filing Procedures in Accordance with the Law

The equity transfer contract will be effective as long as the transfer does not fall into a prohibited investment sector under the Negative List, or if it meets the entry conditions for a restricted sector. Provisions in previous contracts that required approval from relevant authorities for validity are no longer applicable. At present, the foreign investment information reporting system has replaced the prior approval and filing regime. This means that, except for investments falling under the restricted sectors of the Negative List, all foreign investment contracts — including contracts for foreign mergers and acquisitions — are no longer subject to approval by competent authorities. If the target company’s business scope involves prohibited or restricted investment sectors under the Negative List, the company should, after signing the equity transfer contract, adjust its business scope to cease the relevant activities. Once the entry requirements for foreign investment in restricted sectors are met, the contract shall be deemed effective.

[To be Continued]

 

One Week in Shanghai

 

Corporate Activities

 

1.Aptiv’s Intercable New Energy Vehicle Project Launched in Jiading

[Keywords: Aptiv, Intercable]

 

Recently, Aptiv’s Intercable new energy vehicle (NEV) project was launched in Anting Town, Jiading District. Upon commencement of production, the project is expected to generate sales revenue exceeding RMB 10 billion within ten years. The project will focus on the R&D and manufacturing of battery connection systems for NEVs, providing efficient and safe high-voltage power distribution solutions for leading domestic and international automakers, and supporting the optimization and upgrading of NEV battery systems.

 

Source:Shanghai Jiading 

 

2.Adidas Greater China Headquarters to Settle in Xuhui

[Keyword: Adidas]

 

Recently, Hongkong Land and Adidas jointly announced that Adidas, the global sportswear leader, will establish its Greater China headquarters in a standalone office building at Shanghai West Bund Central in Xuhui District. The 18-story building, with a total floor area of 32,400 square meters, is scheduled for completion and handover in the first quarter of 2026 and is expected to be fully operational in the fourth quarter of the same year.

 

Source: Shanghai Xuhui

 

3. CPD Group’s Shanghai Innovation Center · Operations Center Officially Opens

[Keyword: CPD]

 

Recently, CPD held the grand opening ceremony of its Shanghai Innovation Center · Operations Center at the Lingang Songjiang Sci-tech City. As a core component of CPD Group’s localization 3.0 strategy, the center integrates R&D, marketing, supply chain, and production functions, aiming to serve as a hub for technology transformation and responsive market demand.

 

Source: Lingang Lianhe

 

Forum & Exhibition

 

1. The 27th Asia Pet Fair Set to Open in Shanghai

[Keywords: Pet Fair Asia]

The 27th Pet Fair Asia will be held from August 20 to 24 at the Shanghai New International Expo Centre. This year’s event features an expanded scale, bringing together more than 2,600 domestic and international exhibitors. Over 510,000 industry professionals and pet enthusiasts are expected to attend the event.

 

Source: Pet Fair Asia

 

Competitive Event

 

1. 2025 Tour of Shanghai Cycling Race to Kick Off in September

[Keywords: Tour of Shanghai cycling race]

From September 5 to 7, the 2025 Tour of Shanghai cycling race will once again connect Jiading, Songjiang, Qingpu, Fengxian, and Nanhui, bringing a thrilling cycling spectacle to the city. This year’s race has drawn 20 elite professional teams from 10 countries and regions, including China, Italy, Belgium, the Netherlands, the United States, Australia, Thailand, South Korea, Malaysia, and Estonia. A total of 120 riders will compete fiercely across five “new cities” in Shanghai’s suburban districts.

 

Source: Shanghai Release

 

Culture & Art

 

1. Shanghai Grand Theatre Unveiled 2025/26 Performance Season

[Keywords: Shanghai Grand Theatre]

The Shanghai Grand Theatre recently unveiled its 2025/26 performance season, themed “Replay”. The new season brings together timeless masterpieces from China and abroad, spotlighting productions of high caliber, strong appeal, and exceptional quality. A total of 75 productions with 860 performances will be staged, spanning grand operas, legendary ballets, popular musicals, and newly staged traditional Chinese operas.

 

Source: International Services Shanghai

https://english.shanghai.gov.cn/en-CulturalPerformances/20250812/5249602c948148fdb54cce9f37e89fef.html