Shanghai Weekly Bulletin (Issue 68, No.1, November 2024）

1.  Shanghai Issues Guidelines for Handling Matters Related to the Negative List 

Shanghai Municipal Development and Reform Commission, together with Shanghai Municipal Commission of Commerce and other departments of the city, recently prepared the Guidelines for Handling Matters Related to the Administration of the Negative List for Foreign Investment Access. The document removes two restrictions on foreign investment access, including that Chinese entities are required to hold a controlling interest in the printing of publications, and that foreign investment is prohibited in the application of certain processing techniques – such as steaming, frying, roasting and calcination of Chinese herbal slices – and in the production of confidential formulations for traditional Chinese patent medicines.

1. E-port Visa Pilot Program Expands to Entire Pudong New Area

The e-port visa pilot program has been expanded to the entire Pudong New Area from the Lingang Special Area of China (Shanghai) Pilot Free Trade Zone. Foreigners who are invited to Shanghai by enterprises in Pudong New Area and meet the requirements for applying for port visas can apply for F (visit), M (trade), R (talent), Z (work) and S2 (private affairs) e-port visas and enter the country through ports of entry in Shanghai. 

https://english.shanghai.gov.cn/en-Latest-WhatsNew/20241029/a50ff9a607404b6c8371bbbd6a84f5b3.html

The National and Local Co-built Humanoid Robotics Innovation Center, together with leading companies and institutions in the industry, released the first batch of standards for humanoid robots and embodied AI in the “Model Magic Community”, a hub in Pudong that aims at attracting and supporting AI companies specializing in large models. The standards include the Guidelines for the Classification and Grading of Humanoid Robots and the Guidelines for the Grading of Development Stages of Embodied AI.

【Culture & Art】

1: Officials with the Ministry of Commerce (MOFCOM) answered press questions at a special press conference on the replication and promotion of institutional opening-up measures of Pilot free trade zones in alignment with international high standards. According to the Circular on the Replication and Promotion of Institutional Opening-up Measures of Pilot Free Trade Zones in More Regions in Alignment with International High Standards, pilot FTZs have carried out a number of pioneering and trailblazing institutional innovations. Can you give us a detailed introduction to the achievements, experiences and typical cases?

A:After the issuance in June 2023 of the Several Measures on Piloting the Integration of International High Standards at Qualified Pilot Free Trade Zones and Free Trade Ports to Promote Institutional Opening-up, the MOFCOM has established a cross-departmental and cross-regional working mechanism to push for the implementation of the initiative. Relevant departments issued opinions, detailed rules and guidelines. The six pilot regions also formulated detailed plans and carried out differentiated explorations based on their actual conditions to jointly ensure that the pilot was fully implemented, achieved practical results, and benefited business entities. The following is an introduction to the achievements and experiences from four aspects.

Firstly, we have carried out a number of "first-time and first-trial" system innovations. We are the first to relax rules on the import of 62 remanufactured products, such as reciprocating piston engines. The first order in China has been placed in Shanghai, reducing cost by 40% for the buyer. We are the first to implement the system of extension upon application for advance ruling, effectively improving the predictability of trade. We are the first to give up the compulsory product certification for information technology equipment, allowing the use of self-declaration as a guarantee that imported products comply with electromagnetic compatibility standards. The first certificate in China has been issued and has taken effect.

Secondly, we have launched a number of "market connection" measures. To support overseas professionals to provide services in China, the six pilot regions have issued lists of overseas professional qualifications recognition and expanded the scope of recognition. To facilitate foreign personnel to work and live in China, we would issue visas of up to two years to foreign executives planning to set up companies in the pilot areas and their accompanying family members. The accompanying spouses and family members of experts at foreign-funded enterprises will be allowed to enjoy the same stay and residence period as the experts. In accordance with the principle of consistency between internal and external affairs, applications for new financial services from foreign-funded financial institutions will be approved, and decisions on relevant service applications submitted by overseas financial institutions will be made within 120 days.

Thirdly, we plan to introduce some "cost reduction and efficiency improvement" policies to benefit enterprises. For goods that are imported into China for exhibition or display purposes, customs duties and import-related taxes will not be imposed for the time being. Specific words are allowed to be marked on the labels of imported wines, and more than 100 batches of wines with descriptive words like "collection" and "classic" have been imported. For certain imported air express goods, customs clearance can be completed within six hours, and for general goods, customs clearance can be completed within 48 hours, and customs clearance efficiency has been continuously improved.

Fourthly, we will present a couple of "efficient and transparent" management practices. Typical cases of online consumer rights protection will be released to explore how to address consumer risks that may exist in new business formats and models. When announcing the results of single-source government procurement projects, we would explain the reasons for adopting this approach to further enhance transparency. We support enterprises to align with international standards and guidelines and establish a voluntary mechanism to improve environmental performance. We would promote the pilot program of publishing arbitration awards, and provide and disclose arbitration awards of labor and personnel disputes to related parties.