Shanghai issues plan to improve environment for foreign investment
The Shanghai Municipal Commission of Commerce, in collaboration with three other government departments, has released a comprehensive plan aimed at further optimizing the environment for foreign investment.
The document, titled the “Implementation Plan to Further Optimize the Environment for Foreign Investment and Enhance Efforts to Attract Foreign Investment,” took effect on July 11, 2024, and outlines 15 key measures.
The three other collaborating departments are the Shanghai Municipal Development and Reform Commission, the Shanghai Municipal Commission of Economy and Informatization, and the Shanghai Municipal Commission of Science and Technology.
Highlights of the document include:
1. Increase support for foreign R&D centers
Implement Shanghai's enhancement plan for foreign-funded research and development centers (View graphic of the plan) to attract foreign R&D centers to Shanghai and enhance the capabilities of existing ones. Eligible global R&D centers can enjoy relevant subsidies in accordance with laws and regulations.
Support eligible foreign R&D centers in applying for Shanghai’s locally-funded science and technology programs.
Encourage foreign R&D institutions to collaborate with local universities, research institutions, and enterprises in innovation projects, providing funding support for eligible projects.
Support the establishment of open innovation platforms and high-quality incubators by foreign-invested enterprises in Shanghai, facilitating deep cooperation with professional service agencies to accelerate the commercialization of technological achievements and the cultivation of innovative enterprises.
2. Expand opening-up of the service sector
Seek pilot measures to expand opening-up in key areas, such as financial services, biopharmaceuticals, and fashion.
Under the premise of compliance with relevant laws and regulations, accelerate the implementation of foreign investment projects in the biopharmaceutical sector, and encourage foreign-funded enterprises to conduct clinical trials on overseas-listed cell and gene therapy drugs in Shanghai. In the China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ), select eligible foreign-funded enterprises to pilot the development and application of gene diagnosis and treatment technologies.
Accelerate pilot projects to expand the opening-up of value-added telecom services.
3. Expand channels for attracting foreign investment
Encourage eligible foreign investors to establish investment companies and regional headquarters in Shanghai. Companies established by these investment companies can enjoy the treatment of foreign-funded enterprises in accordance with national regulations, and new investments by regional headquarters of multinational companies can enjoy support policies in accordance with relevant regulations.
Encourage eligible foreign investors to establish equity investment funds, and create a fast-track process for eligible equity investment fund managers to establish these funds.
4. Improve mechanisms for advancing foreign investment projects
Enhance the mechanisms to promote the early signing, early commencement, and early production of foreign investment projects.
Support foreign-funded enterprises in participating in green certificate transactions and green electricity trading.
Support foreign-funded enterprises in participating in the national plan for large-scale equipment renewals.
5. Explore mechanisms for cross-border data flow
Guide foreign-funded enterprises in conducting security assessments on outbound data and filing for record of standard contracts for outbound personal information.
Implement pilot projects for security pre-assessments of outbound data.
Utilize the cross-border data service center in Lin-gang Special Area to provide consulting services and preliminary reviews of materials related to cross-border data flow.
Formulate regulations for cross-border data flow in the Shanghai FTZ, exploring the development of "negative lists" and guidelines for cross-border data flows in various scenarios, such as biopharmaceuticals, intelligent connected vehicles, shipping, retail, finance, and technology export.
6. Enhance convenience for foreigners to live in Shanghai
Upgrade the International Services Shanghai portal (english.shanghai.gov.cn) to provide policy information, news services, and living guides for foreign employees of foreign-invested enterprises in Shanghai.
Encourage foreigners working in foreign-invested enterprises to apply for the Fast Pass on Foreign Talents Remuneration Foreign Exchange, which allows multiple transactions and cross-bank services without document review, provided by banks in Shanghai.
Implement measures to facilitate the entry of foreign personnel to China, providing convenience for those urgently applying for port visas to come to Shanghai for business cooperation, visits, exchanges, and investment.
Provide convenience for eligible foreign senior management and technical personnel hired and recommended by foreign-invested enterprises to apply for permanent residence.
Promote the application of the Five-Star Card, the new version of the permanent resident card, in more convenient scenarios.
7. Optimize inspections for foreign-invested enterprises
Categorize enterprises according to their levels of risk and credit. For enterprises with low risk and good credit, further reduce the proportion and frequency of random inspections.
Explore new models, such as "comprehensive one-time inspection," in which multiple departments jointly conduct different administrative inspections on the same regulatory object simultaneously.
Deepen inclusive and prudent regulations according to the scope of matters not subject to administrative penalties and the standards for mitigating administrative penalties.
8. Guarantee national treatment for foreign-invested enterprises
Safeguard the rights of foreign-invested enterprises to participate in government procurement activities in Shanghai. Implement the collaborative government procurement for innovative products. Measures such as subscription and first purchase will be adopted to support foreign-invested enterprises in the city in innovating and developing globally leading products. This cooperative procurement involves the government working together with suppliers, sharing the risks of research and development, and purchasing the successfully developed innovative products as agreed in R&D contracts.
Utilize the Shanghai Foreign-Funded Enterprises Standardization Collaboration Platform to provide foreign enterprises with one-stop services, such as information inquiry on standards, policy promotion, and public training.
Encourage foreign-invested enterprises to independently or jointly with other enterprises develop standards.
Encourage foreign-invested enterprises to participate in national and municipal pilot projects on service industry standardization and in activities related to standardization awards.
Include eligible representatives of foreign-invested enterprises in the pool of experts for technical review on standardization.
9. Improve mechanism for protecting rights and interests of foreign enterprises
Support the development of arbitration institutions and commercial mediation organizations registered in Shanghai, as well as the Shanghai outlets of overseas arbitration and mediation organizations. Support them in providing foreign-related arbitration and mediation services.
Utilize the Shanghai International Dispute Resolution Center to meet the needs of foreign-invested enterprises for diverse and convenient dispute resolution services.
Utilize the Shanghai Court’s One-Stop International Commercial Dispute Resolution Platform to fairly and efficiently handle conflicts and disputes in the foreign investment field.
Establish a dedicated section called Complaint & Consultation about Foreign Investment on the Invest Shanghai platform (www.investsh.org.cn) to track and resolve problems raised by foreign-invested enterprises.
Source: Shanghai Municipal Commission of Commerce
The English version is for reference only; the official Chinese document shall prevail.