Laws and Regulations

 

National

 

1. State Council Forwards New Rules on Existing PPP Projects

[Keywords: Existing PPP projects]

 

Recently, the General Office of the State Council circulated the Guiding Opinions on Regulating the Construction and Operation of Existing Government and Social Capital Partnership Projects issued by the Ministry of Finance. The document sets out clear requirements in four areas: ensuring smooth progress of projects under construction, promoting stable operation of projects already in service, strengthening policy support, and enhancing organizational support.

 

Source: Chinese Government Website

https://www.gov.cn/zhengce/content/202508/content_7037232.htm

 

2. Draft Measures for the Administration of M&A Loans by Commercial Banks Released for Public Comment

[Keywords: Commercial banks, M&A loans]

On August 20, the National Financial Regulatory Administration (NFRA) issued an announcement inviting public comments on the Measures for the Administration of M&A Loans by Commercial Banks (Draft for Comments). The draft contains 33 articles, with key revisions including: expanding the scope of application of M&A loans, setting differentiated qualification requirements for business operations, optimizing loan conditions, and strengthening debt repayment capacity assessments. The deadline for feedback is September 20.

 

Source: NFRA

https://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1222152&itemId=951&generaltype=2

 

3.PBC and Bank of Thailand Renew Currency Swap Agreement

[Keywords: Thailand, Currency swap]

 

The People’s Bank of China (PBC) and the Bank of Thailand recently renewed their bilateral currency swap agreement. The swap arrangement has a size of RMB 70 billion / THB 370 billion, with a validity period of five years and the option for extension upon mutual agreement.

 

Source: PBC

http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/5813187/index.html

 

Shanghai

 

1. Shanghai to Enhance Efficiency of Air Cargo Customs Clearance

[Keywords: Air ports, Logistics clearance]

 

The Shanghai Municipal Commission of Commerce, together with three other authorities, recently issued the Work Plan on Further Optimizing and Improving the Logistics Clearance Efficiency of Shanghai’s Air Ports. The Plan outlines 18 measures across six areas to further facilitate customs clearance at Shanghai’s air ports, with the aim of improving air logistics clearance efficiency and enhancing the core competitiveness of the Shanghai International Air Cargo Hub.

 

Source: Shanghai Municipal Commission of Commerce

https://sww.sh.gov.cn/zwgkgfqtzcwj/20250819/610c63c15849444a82d818e4368eb063.html

 

2.Shanghai Plans to Accelerate “AI + Manufacturing” Development

[Keywords: AI + Manufacturing]

 

The Shanghai Municipal Commission of Economy and Informatization (SHEITC), together with two other authorities, recently issued the Implementation Plan on Accelerating the Development of “AI + Manufacturing” in Shanghai. The Plan sets out 24 measures across six areas, with the primary goal of significantly advancing the city’s level of intelligent manufacturing over the next three years, and fostering a series of innovative achievements in corpora, models, platforms, and application scenarios.

 

Source: SHEITC

https://www.sheitc.sh.gov.cn/cyfz/20250819/809aa8a70f8643b383a2e8d4714762f6.html

 

3.Shanghai Releases Guidelines to Strengthen Intellectual Property Rights Protection in E-commerce

[Keywords: E-commerce, Intellectual property]

 

Recently, the Shanghai Intellectual Property Administration, together with two other authorities, issued the Several Opinions on Strengthening Intellectual Property Rights Protection in E-commerce in Shanghai. The document specifies that for online businesses labeled as “flagship store”, “brand store”, “franchise store”, or “exclusive store”, e-commerce platforms must require them to provide and review their proof of rights. For businesses selling publications, e-commerce platforms must also require them to provide and regularly verify their qualification certificates or licensing materials etc. The Opinions will take effect on September 15, 2025, and remain valid until September 14, 2030.

 

Source: Shanghai Intellectual Property Administration

 

4. Shanghai Releases Rules on Transfer of Products with Medical Device Registration Certificates to Shanghai for Production

[Keywords: Medical device registration certificate]

 

Recently, the Shanghai Municipal Medical Products Administration released the Provisions on Matters Concerning the Transfer of Products with Medical Device Registration Certificates into Shanghai for Production. The document sets out clear requirements regarding product registration, production licensing, and related consultation services.

 

Source: Shanghai Municipal Medical Products Administration

 

Q&A

 

At the press conference series on the achievements of Shanghai’s 14th Five-Year Plan, titled “Delivering Results Through Action, Carrying Forward a New Blueprint”, relevant officials from the Pudong New Area Development and Reform Commission responded to a reporter’s question: 

Q

“During the 14th Five-Year Plan period, the central government has successively introduced a series of major reform policies for Pudong, including the Pudong comprehensive reform pilot program and the high-standard institutional opening-up of the Pilot Free Trade Zone, assigning Pudong with important national strategic tasks. Over the past five years, what key initiatives and notable outcomes has Pudong achieved in advancing reforms?”

A

Reform is the most distinctive hallmark of Pudong. Since the launch of the 14th Five-Year Plan, guided by national strategic tasks, Pudong has rolled out a series of pioneering institutional innovations that have already delivered tangible results.

We have focused on strengthening the systematic integration of reforms. Solid progress has been made in the comprehensive reform pilot program, producing a series of landmark outcomes, 11 of which have been replicated and promoted nationwide by the National Development and Reform Commission. In terms of market-based allocation of production factors, the Shanghai Data Exchange released a comprehensive set of trading rules and a data trading chain, launched an international board for data trading, and listed nearly 5,500 data products. We also have piloted a system to control the total amount of construction land according to the planning period, and explored a new mechanism for newly built large-scale parks and green spaces to complete land-use procedures in accordance with the law without being included in the urban and rural construction land quota. Meanwhile, we focus on overseas talent services and have carried out integrated reforms in areas such as cross-border mobility, residence and stay, and work facilitation. In terms of business environment, the market entity registration and confirmation system has benefited 190,000 enterprises. More than 17,000 integrated industry licenses have been issued under the “One Industry, One License” initiative, and over 5,000 licenses have been issued under the “commitment-based licensing system”. In addition, 23 local regulations and 35 administrative measures have been enacted in Pudong New Area.

We have advanced institutional opening-up in greater depth. The 80 tasks of the Overall Program for Comprehensively Keeping Pace with the High-standard International Trade Rules and Implementing a High-level Institutionalized Opening-up Policy in the China (Shanghai) Pilot Free Trade Zone have been basically implemented, with 77 pilot experiences replicated and promoted on a larger scale. In trade in goods, the country’s first pilot program for importing remanufactured products in key industries and the bonded remanufacturing business outside the customs special supervision area were launched. Localized management of Chinese labeling for imported medical devices has been implemented, with more than 600,000 labels affixed each month. In trade in services, the nation’s first cross-border crude oil transaction settled in digital renminbi was completed. The Administrative Measures and Negative List for Cross-border Data Transfer in the Shanghai Pilot Free Trade Zone were released and implemented, effectively reducing compliance costs for outbound data flows. In “behind-the-border” institutional reforms, over 2,200 government procurement projects adopted new standardized and transparent rules, with more than 1,000 projects publishing bid announcements in both Chinese and English.

We have continuously enhanced the core functions of the “Five Centers”. Efforts have been made to strengthen global resource allocation capabilities, with 129 new regional headquarters of multinational companies established. In 2024, Pudong’s three leading industries reached a total output value of RMB 832.3 billion. In finance, the Shanghai Futures Exchange launched a series of international products, including crude oil options and the Shanghai (export) Containerized Freight Index (SCFI) (Europe service), further expanding the influence of “Shanghai prices”. In trade, the preferential stamp duty policy for offshore trade has delivered notable results, with offshore trade exceeding USD 90 billion in 2024, up 75%. In shipping, a pilot program for supplying pharmaceuticals and medical devices to vessels has been launched, covering 724 types of medicines. In sci-tech innovation, China’s first batch of CAR-T therapies has gained access to international markets; meanwhile, the Global Open Innovation Center initiative for large enterprises has been implemented, with 107 member companies to date, empowering over 6,600 enterprises.

Looking ahead to the 15th Five-Year Plan period, we will continue with the implementation of major national strategic tasks, accelerating the rollout of landmark reform measures such as the Institutional Opening-up 2.0 Plan, the second batch of authorizations under the comprehensive reform pilot, and special measures to further ease market access. We will step up efforts to explore institutional innovations that can be pioneered in Pudong, replicated in Shanghai, and serve as references nationwide, striving to remain a trailblazer in advancing reform and opening up at a higher level.

 

Source: Shanghai Release

 

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]

V. Conclusion

Judicial practice shows that when determining whether a foreign-funded party holds shareholder status, courts place emphasis not only on formal requirements such as the articles of association and business registration, but also on substantive factors — whether the party has actually exercised shareholder rights, such as participating in major corporate decisions or receiving profit distributions. This reflects a judicial approach that balances “formal review” with “substantive assessment”.

For equity transfer cases where the transfer occurred before the implementation of the Foreign Investment Law but the dispute arose after its implementation, courts — applying the principles of “national treatment” and “equal treatment of domestic and foreign investment” — will not uphold claims that an equity transfer agreement must be approved by competent foreign investment approval authority if the company’s business scope does not fall within the Negative List. For example, in case (2021) SPC Minshen No. 1074, the Supreme People’s Court held that equity changes in enterprises engaged in real estate development and other sectors outside the Negative List do not require approval.

Finally, for foreign-funded enterprises, it is essential to take a proactive approach during restructuring and actively implement measures to complete governance adjustments. These include signing written agreements in accordance with the law to confirm shareholder status, promptly completing industrial and commercial registration changes, and reviewing whether equity transfers have undergone the required approval and filing procedures. These steps are not only necessary for legal compliance but also serve as key safeguards for modernizing corporate governance and enhancing operational efficiency.

 

One Week in Shanghai

 

Latest News

 

1. Shanghai Customs Launches Pilot Online Platform for Administrative Reconsideration Applications

[Keywords: Customs, Administrative reconsideration]

 

Recently, Shanghai Customs released the Notice on the Pilot Launch of the Online Platform for Administrative Reconsideration Applications. The platform has been put into trial operation since August 20, 2025, accessible at: https://online.customs.gov.cn/publicService. It serves as the sole online channel for applicants to submit administrative reconsideration requests to Shanghai Customs.

 

Source: Shanghai Customs 12360 Hotline

 

2.Yangtze River Delta Trade Adjustment Assistance Hongqiao Service Station Officially Launched

[Keywords: Yangtze River Delta, Trade adjustment assistance]

 

Recently, the Yangtze River Delta Trade Adjustment Assistance Hongqiao Service Station was officially inaugurated. This marks the launch of the nation’s first regional trade adjustment assistance service platform, which will provide services to enterprises through a combination of online and offline channels. The platform will leverage the Professional Service Alliance for Yangtze River Delta Trade Adjustment Assistance, the Industry Service Alliance, and the International Market Development Alliance.

 

Source: Shanghai Municipal Development and Reform Commission

 

3.Lingang Special Area Launches “Digital Comprehensive Bonded Zone” as a New Benchmark for Digital Transformation

[Keywords: Lingang Special Area, Digital comprehensive bonded zone]

 

On August 20, Lingang Special Area held the release and launch ceremony of the “Digital Comprehensive Bonded Zone”. Built on the data foundation of Lingang’s Integrated Information Management Service Platform, the “Digital Comprehensive Bonded Zone” aims to break down data silos across departments, empower diverse innovative business models, and achieve major breakthroughs. It marks a significant milestone in the journey of Yangshan Special Comprehensive Bonded Zone toward digitalization and intelligent development.

 

Source: Shanghai Lingang

 

Corporate Activities

 

1. Corning Plans Additional US$500 Million Investment in China This Year

[Keyword: Corning]

 

Corning Incorporated, a global leader in materials science innovation, recently showcased its latest technologies at the 2025 International (Shanghai) Display Technology and Application Innovation Expo (DIC EXPO 2025). The company announced plans to invest an additional US$500 million in the Chinese market this year, with a focus on strengthening its strategic presence in optical communications, automotive applications, and display technologies, further consolidating its innovation and manufacturing base in China.

 

Source: Shanghai Foreign Investment Association

 

Culture & Art

 

1. “Rodin Art Season” Officially Opens

[Keyword: Rodin]

Recently, the “Rodin Art Season” opened with the debut of The Walking Man (1900), one of Rodin’s most celebrated works, at China Art Museum, Shanghai. Marking the masterpiece’s first-ever appearance in China, the season features four major series of events that engage audiences from multiple dimensions, offering a profound experience of the “truth, goodness, and courage” embodied in Rodin’s sculptures.

 

Source: Pudong Release

 

2. A Series of Piano Concerts Set to Grace the Stage

[Keyword: Piano]

 

From August to November, a series of piano concerts will be staged at the Shanghai Oriental Art Center, featuring world-renowned pianists Yefim Bronfman and Fazıl Say, alongside rising stars Vladimir Vishnevsky and Liu Xiaoyu. Their performances will weave together a musical journey from classicism to modernism, showcasing the piano’s diverse allure and infusing Shanghai with a rich artistic atmosphere.

 

Source: Shanghai Tourism

 

3. 2025 Chenshan Botanical Garden Kicks off “Tranquil World of Water Lilies” Exhibition

[Keywords: Chenshan, Water lilies]

On August 18, the 2025 “Tranquil World of Water Lilies” exhibition opened at Chenshan Botanical Garden. During the flower show, the garden features seven themed display areas: Twin Glories of Lotus Charm, Strolling Through the Cedar Forest, Tears of the Water Lily, Light, Sound, and Color on the Water, Babbling Streams, Reflections of Euryale on East Lake, and Beside the Unstained Bridge.

 

Source: Shanghai Chenshan Botanical Garden