Laws and Regulations

 

National

 

1. General Rules for Cosmetic Product Standards to Take Effect on January 1, 2027

[Keywords: Cosmetics, Standards]

 

Recently, the National Medical Products Administration (NMPA) issued the General Rules for Cosmetic Product Standards, an industry standard for cosmetics. The document establishes classification principles for drafting cosmetic product standards and specifies the general requirements, elements, and setup requirements for the content of product standards. The document applies to the drafting of industry standards for cosmetic products and will take effect on January 1, 2027.

 

Source: Shanghai Medical Products Administration

 

2. Nine Authorities Issue Document to Promote High-Quality Development of Bonded Aviation Maintenance

[Keywords: Aviation, Bonded maintenance]

 

Recently, the Ministry of Commerce and eight other authorities issued the Opinions on Promoting the High-Quality Development of Bonded Aviation Maintenance. The document proposes 13 measures in six areas, including increasing support for bonded aviation maintenance, strengthening fiscal, tax and financial policy support, and improving regulatory facilitation.

 

Source: Ministry of Commerce

https://www.mofcom.gov.cn/zwgk/zcfb/art/2026/art_b18217ddf0f94e5ab6dc379a5fbefd6a.html?sessionid=

 

3. 21 Measures Introduced to Promote High-Quality Development of Cyberspace Enterprises

[Keywords: Cyberspace Enterprises]

 

Recently, the Central Cyberspace Affairs Commission issued the Action Plan for Promoting the High-Quality Development of Cyberspace Enterprises (2026–2030). The document sets out the working principles of encouraging and supporting development while ensuring sound regulation, combining policy guidance with law-based administration, and giving equal emphasis to economic and social benefits. It specifies seven actions and 21 measures.

 

Source: Cyberspace Administration of China

 

Shanghai

 

1. Shanghai to Accelerate Development as an International Trade Center

[Keywords: International Trade Center]

 

Recently, the Shanghai Municipal People’s Government issued the 15th Five-Year Plan for Accelerating the Development of Shanghai as an International Trade Center. The document sets out 10 indicative targets, including new drivers of trade growth such as increasing the value of imports and exports of services to more than US$300 billion and bringing cumulative offshore trade volume to over US$500 billion.

 

Source: International Services Shanghai

https://english.shanghai.gov.cn/en-Policies/20260827/36fb8ca9a4fd4f1689a4f26a74e1531c.html

 

2. Shanghai Issues 15th Five-Year Plan for Development of Strategic Emerging Industries

[Keywords: Strategic emerging industries]

 

Recently, the General Office of the Shanghai Municipal People’s Government issued the 15th Five-Year Plan for the Development of Strategic Emerging Industries in Shanghai. The document focuses on strengthening the strategic leadership of the three pioneering industries, expanding 12 specialized sectors of emerging pillar industries, making forward-looking plans for 10 frontier technologies, fostering eight categories of new service formats and models in strategic emerging industries, and building strategic emerging industry clusters with international influence.

 

Source: International Services Shanghai

https://www.shanghai.gov.cn/nw44139/20260826/1922739f1270410c91cb235c434c8662.html

 

3. SHFE Expands Scope of Commodity Futures and Options Trading for Qualified Foreign Investors

[Keywords: Qualified foreign investors, Futures, Options]

 

Recently, the Shanghai Futures Exchange (SHFE) issued the Announcement on Further Expanding the Scope of Commodity Futures and Options Trading for Qualified Foreign Investors. Starting September 10, 2026, the SHFE will further expand the range of products available for trading by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (QFII/RQFII), with hot-rolled coil options and stainless-steel options newly added.

 

Source: SHFE Release

 

4. Lingang Special Area Unveils Development Blueprint for Next Five Years

[Keywords: Lingang Special Area]

 

Recently, the Lingang Special Area Administration issued the 15th Five-Year Plan for the Development of the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone. The document sets 19 major targets and outlines six major tasks, including advancing higher-standard opening-up, building new strengths in frontier industry clusters, and developing “Lingang Sci-Tech Innovation City” into a hub for innovation and entrepreneurship.

 

Source: International Services Shanghai

https://english.shanghai.gov.cn/en-Policies/20260827/b590b68cb8264d7ca325454d5c7e7ce2.html

 

5. 15th Five-Year Plan for Hongqiao International Central Business District Issued

[Keywords: Hongqiao International Central Business District]

 

Recently, the Hongqiao International Central Business District (CBD) Administration issued the 15th Five-Year Plan for the Development of Hongqiao International Central Business District. The document sets out nine indicative targets and 19 measures in five areas, including enhancing the level of opening-up and optimizing comprehensive business functions, amplifying spillover effects and expanding the functions of major conventions and exhibitions, and strengthening domestic and international connectivity and the district’s transportation advantages.

 

Source: Hongqiao International CBD Administration

https://www.shhqcbd.gov.cn/zlgh/jjhshfagh/842030995505221.html

 

Q&A

 

An official from the Shanghai Municipal Commission of Commerce answers questions at a press conference held by the Information Office of the Shanghai Municipal People’s Government on the 15th Five-Year Plan for the Development of the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone.

Q

The 15th Five-Year Plan for the Lingang Special Area calls for advancing higher-standard opening-up. How will the Shanghai Municipal Commission of Commerce better support the Special Area in playing its role and participating more deeply in global competition?

A

During the 14th Five-Year Plan period, the Shanghai Municipal Commission of Commerce focused closely on the main task of international trade development and, together with relevant departments, supported Lingang in introducing a series of innovative measures in areas including trade in services, trade in goods, and digital trade, achieving solid results. The 15th Five-Year Plan period will be a critical stage for the Lingang Special Area to move into a new phase, achieve further progress, and build stronger distinctive advantages. The Commission will further support the Lingang Special Area in strengthening its competitive advantages and achieving higher-quality development in three areas.

First, we will support Lingang in continuing to foster new forms and new advantages in foreign trade. We will support the Lingang Special Area in deepening comprehensive reform of financial services for offshore trade, intensifying efforts to attract offshore trade entities, and encouraging more product distribution centers of multinational corporations, commodity traders, and global manufacturers to establish dedicated offshore business companies in the Lingang Special Area, enabling them to participate more deeply in global production, sales, services, and other activities and further expand the scale of offshore trade. We will encourage the Lingang Special Area to develop new growth drivers in bonded businesses such as bonded maintenance, bonded testing, and bonded training, expand diversified bonded industries with distinctive strengths, and increase the scale and capacity of bonded processing and manufacturing, particularly by building a hub for bonded maintenance in industries such as automobiles and aviation.

Second, we will support Lingang in further optimizing two-way investment services for both “going global” and “bringing in”. We will strengthen Lingang’s brand for overseas expansion services and achieve more precise matching between industries and services. Focusing on key industries in the area, we will leverage the Shanghai Comprehensive Service Platform for Enterprises Going Global and its Lingang sub-platform to integrate overseas expansion service resources, accelerate the introduction of a number of high-quality service providers, and attract more enterprises expanding overseas to establish headquarters in the Lingang Special Area. At the same time, we will support Lingang in further improving innovative offerings in cross-border finance, cross-border trade, and offshore trade, creating a fairer, more transparent, and more predictable investment environment, attracting a number of landmark foreign-funded projects, and using high-quality projects to drive stronger industrial growth.

Third, we will support Lingang in further promoting in-depth and high-standard opening-up. In line with the country’s overall arrangements for opening-up, we will support the Lingang Special Area in strengthening independent opening-up and institutional innovation in key areas such as trade in services, trade in goods, digital trade, and finance, so as to better pilot systems, conduct stress tests, and explore new paths for the country. We will continue to promote the effective implementation of various opening-up pilot policies, develop more demonstration projects and exemplary cases, further amplify the effects of opening-up policies, and accumulate more experience that can be replicated and promoted.

 

Source: Shanghai Release

 

Expert Perspective

 

From “Market Access” to “Business Operations”: The Institutional Logic and Cross-Border Investment Implications of the Action Plan for Stabilizing Foreign Investment and Improving Quality (Part IV)

 

By LAN Jie, XU He, GUO Huarong, and ZHAO Wenjia [Haiwen & Partners]

[Continued from last issue]

 

[Article Overview]

This article focuses on the institutional arrangements under the Action Plan to support foreign investment in the high-quality development of the pharmaceutical industry, with analysis covering segmented drug manufacturing, pilot opening-up in biotechnology and wholly foreign-owned hospitals, commercial insurance payment for innovative drugs and medical devices, and the development of retail channels. The article notes that the transition of segmented manufacturing from pilot programs to an institutionalized framework will help foreign-funded pharmaceutical companies optimize their global production capacity allocation and shorten supply cycles, while the expansion of biotechnology opening-up pilots will create conditions for more foreign-funded enterprises to enter the Chinese market. Meanwhile, support from commercial insurance and retail channels can help address payment and accessibility challenges for innovative drugs and medical devices. Overall, the relevant policies are extending from market access to production, payment, and distribution, promoting coordinated development between higher-standard opening-up and industrial upgrading in the pharmaceutical sector. Going forward, attention should continue to be paid to implementation rules, the allocation of quality responsibilities, and the pace of pilot expansion.

[Article Details]

V. Supporting Foreign Investment in the High-Quality Development of the Pharmaceutical Industry: Segmented Manufacturing and Opening-Up Pilots

Article 1(3) of the Action Plan supports foreign investment in the high-quality development of the pharmaceutical industry in four areas. First, it calls for accelerating research and formulation of detailed implementation rules for segmented drug manufacturing. Second, it expands the geographical scope of opening-up pilots in biotechnology and wholly foreign-owned hospitals. Third, it supports the inclusion of innovative drugs and medical devices in commercial insurance coverage. Fourth, it calls for building platforms to facilitate the entry of foreign-funded pharmaceutical products into retail channels. Together, these four measures form a comprehensive package of opening-up policies covering the entire chain of production, market launch, payment, and distribution.

(I) Cross-Border Segmented Drug Manufacturing: Institutional Recognition of Global Division of Labor

Segmented drug manufacturing refers to a production model in which the manufacturing process of a drug is distributed across different countries or regions, with different pharmaceutical manufacturers responsible for different stages of production. This production model has become quite common in the global pharmaceutical industry, but has long been subject to relatively strict regulatory restrictions in China.

In October 2024, the National Medical Products Administration (NMPA) issued the Pilot Program for Segmented Manufacturing of Biological Products, allowing pilot segmented manufacturing of certain innovative biological products and biological products urgently needed in clinical practice. In January 2026, the State Council issued the revised Regulations for the Implementation of the Drug Administration Law, elevating segmented manufacturing from a pilot program to an institutional arrangement and specifying that, where genuinely necessary, drug marketing authorization holders may entrust qualified manufacturers with the segmented manufacturing of innovative drugs, drugs urgently needed in clinical practice, and other drugs. In May 2026, Johnson &Johnson’s nipocalimab injection became China’s first imported biological product to conduct domestic segmented manufacturing of its drug substance. Its drug substance is manufactured by WuXi Biologics, while the drug product is manufactured by Vetter Pharma, a German pharmaceutical company.

The Action Plan calls for “accelerating research and formulation of detailed implementation rules for segmented drug manufacturing”. This means that, following the establishment of general principles at the regulatory level, supporting implementation rules are urgently needed to specify matters such as application requirements for cross-border segmented manufacturing, the allocation of quality responsibilities, and regulatory coordination mechanisms. For foreign-funded pharmaceutical companies, this is undoubtedly a positive signal, as it means that more multinational pharmaceutical companies will be able to allocate global production resources more flexibly and arrange certain stages of production in China through contract manufacturing, thereby reducing production costs and shortening supply cycles.

(II) Expansion of Biotechnology Opening-Up Pilots: From a Pilot Zone to Broader Regional Coverage

Biotechnology, including human stem cells, genetic diagnosis, and gene therapy technologies, is one of the sectors subject to relatively strict restrictions on foreign investment access. In September 2024, the Ministry of Commerce, the National Health Commission, and the National Medical Products Administration (NMPA) issued a notice permitting expanded opening-up pilots in biotechnology in the Beijing Pilot Free Trade Zone, Shanghai Pilot Free Trade Zone, Guangdong Pilot Free Trade Zone, and Hainan Free Trade Port, and allowing foreign-funded enterprises to engage in the development and application of human stem cells, genetic diagnosis, and gene therapy technologies.

According to publicly available information, to date, at least six foreign-funded enterprises have completed changes to their business scope or new registrations in the above pilot areas, including Merck KGaA from Germany, JW Therapeutics, OriCell Therapeutics, Frontera Therapeutics, and Neukio Biotherapeutics, etc. Information disclosed at a Ministry of Commerce press conference indicates that the above pilot areas are expected to be further expanded, creating conditions for more foreign-funded biotechnology enterprises to enter the Chinese market.

(III) Payment and Distribution Channels: Bridging the “Last Mile” for Innovative Drugs and Medical Devices

The two measures in the Action Plan, namely “supporting insurance companies in including more innovative drugs and medical devices within the scope of commercial insurance coverage” and “establishing industry collaboration platforms to facilitate the entry of drugs manufactured by foreign-funded enterprises into pharmaceutical retail channels”, directly address two major challenges facing foreign-funded innovative drugs in the Chinese market: payment and distribution channels.

In recent years, although the National Reimbursement Drug List has been updated annually, the number of innovative drugs included in the list remains limited, and there is considerable pressure from price negotiations. As an important component of the multi-tiered healthcare security system, commercial insurance can provide a supplementary payment channel for innovative drugs and medical devices. The Action Plan explicitly supports the inclusion of innovative drugs and medical devices produced by foreign-funded enterprises in commercial insurance coverage, providing multinational pharmaceutical companies with greater flexibility in product pricing strategies.

[To be continued]

 

One Week in Shanghai

 

Latest News

 

Promotional Song “Here We Shine” for the 48th WorldSkills Competition Officially Released

[Keywords: WorldSkills Competition, Here We Shine]

 

Recently, the promotional song “Here We Shine” for the 48th WorldSkills Competition and its music video were officially released. With an upbeat and dynamic melody and youthful, passionate lyrics, the song extends an invitation to young skilled professionals around the world: “Come on over to Shanghai, City of skills, watch us fly”.

 

Source: 48th WorldSkills Competition Shanghai

 

Corporate Activities

 

1. JLG High-End Construction Machinery Bonded Maintenance Project Lands in Yangshan

[Keywords: JLG]

 

Recently, JLG, a leading global manufacturer of aerial work platforms, signed a cooperation agreement with Carloha Haishang, officially launching its high-end construction machinery bonded maintenance project in the Yangshan Special Comprehensive Bonded Zone. The project will transform its operations from standalone equipment maintenance to integrated full-chain services, enhancing industrial clustering and its capacity to provide services to global markets.

 

Source: Shanghai Lingang

 

2. Boehringer Ingelheim Deepens China Strategy, Plans New R&D Center in Shanghai’s Zhangjiang

[Keywords: Boehringer Ingelheim]

 

Recently, Boehringer Ingelheim announced an upgrade to its strategic presence in China, with continued investment in R&D, manufacturing, and commercialization in human pharmaceuticals and animal health. As a key part of the strategic upgrade, the company plans to establish a new R&D center in Zhangjiang, Shanghai, to strengthen external innovation partnerships and early-stage clinical development capabilities in China, deepen collaboration with China’s biotechnology sector, and accelerate the discovery and development of breakthrough therapies.

 

Source: Boehringer Ingelheim China

 

Forums & Exhibitions

 

2026 Pujiang Innovation Forum — Youth Science and Technology Forum and MIT Technology Review’s TR35 Asia-Pacific Announcement Ceremony to Be Held on September 14

[Keywords: Pujiang Innovation Forum, TR35]

On September 14, the 2026 Youth Science and Technology Forum and MIT Technology Review’s Innovators Under 35 (TR35) Asia-Pacific Announcement Ceremony will be held at the Zhangjiang Science Hall in Shanghai as one of the thematic forums of the 2026 Pujiang Innovation Forum. The event, themed “New Worldline”, will officially announce the new list of TR35 Asia-Pacific honorees.

 

Source: Shanghai Science and Technology

 

Competition Events

 

Registration Opens for Fengxian Haiwan Forest Half Marathon 2026

[Keywords: Fengxian Haiwan Forest Half Marathon]

 

Recently, registration officially opened for the Fengxian Haiwan Forest Half Marathon 2026. The race covers 21.0975 km. Registration closes at 6:00 p.m. on September 17.

 

Source: International Services Shanghai

https://english.shanghai.gov.cn/en-SportsEvents/20260820/9dbe611507be48d3a4d125acb35ed212.html

 

Training & Seminars

 

Registration Open for Training on Patent Reexamination, Invalidation and Infringement Risk Prevention

[Keywords: Patents, Reexamination, Infringement risk]

 

To further enhance the patent creation, utilization, protection, and management capabilities of foreign-funded enterprises in Shanghai, the fifth session of the “Shanghai IP Protection · Workstation Empowerment Lecture” public-interest training series on corporate intellectual property, themed “Patent Reexamination, Invalidation and Infringement Risk Prevention”, will be held on September 11. Registration closes on September 10.

 

Source: Shanghai Foreign Investment Association

 

Culture & Arts

 

1. Lu Xun Literature Prize Event Held in Shanghai for the First Time

[Keywords: Lu Xun Literature Prize Night]

Recently, the 2026 China Literature Gala · Lu Xun Literature Prize Night, jointly hosted by the China Writers Association and the Shanghai Municipal People’s Government, was held in Shanghai. This marks the first time that the Lu Xun Literature Prize, one of China’s highest literary honors, has been presented outside Beijing, with Shanghai hosting the event. Shanghai, a city known for its rich literary heritage, will also become the permanent host city for the event.

 

Source: Shanghai Release

 

2. “An Odyssey between Past and Present — ShanShui as Theme” Art Exhibition Now on View

[Keywords: Landscape art exhibition]

 

Recently, the art exhibition “An Odyssey between Past and Present — ShanShui as Theme”, jointly organized by the Shanghai Oil Painting and Sculpture Institute and the China Cultural Center in Brussels, is on view at the China Cultural Center in Brussels. The exhibition brings together 45 pieces (sets) of works by 22 Chinese artists, using diverse media including sculpture, painting, installation, and video to present a contemporary dialogue on landscape.

 

Source: Shanghai Tourism

 

3. One-Man Show Insuline & Magnolia to Take the Stage at World Box Theater, Shanghai Great World in September

[Keywords: Insuline & Magnolia]

On September 4 and 5, the one-man show “Insuline & Magnolia” will be staged at World Box Theater, Shanghai Great World. Written by French actor Stanislas Roquette and based on a true story, the production features a solo performer throughout its 80-minute runtime.

 

Source: Shanghai Huangpu

 

4. “Tranquil World of Water Lilies” Now on View

[Keywords: Water lilies]

 

The 2026 “Tranquil World of Water Lilies” water lily diversity exhibition is being held at Chenshan Botanical Garden from August 22 to September 20. This year’s event features more than 280 varieties of water lilies across seven themed exhibition areas in the garden, including more than 160 tropical varieties and over 120 hardy varieties. Several new varieties independently bred by Chenshan are making their global debut.

 

Source: Shanghai Chenshan Botanical Garden