White Paper on Environment for Foreign Investment in Shanghai
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2018 White Paper On Environment for Foreign Investment in Shanghai Edited by Shanghai Municipal Commission of Commerce Preface “China’s door of opening-up will not be closed and development with a new blueprint. As is made clear will only open even wider,” proclaimed the Chinese in the Opinions of the Shanghai Municipal Committee President Xi Jinping at the 2018 Boao Forum for of the Communist Party of China on Improving Urban Asia. Over the past four decades, Shanghai has Capacities and Core Competitiveness of Shanghai been dedicated to its development characterized by for Future Global Competitions adopted at the 4th constantly deepened reforms and further opening- Plenary Session of the 11th Shanghai Municipal up. From the establishment of China’s first batch of Committee of the Communist Party of China state-level development zones to the enforcement of (CPC), further efforts will be devoted to developing China’s first local regulations for foreign investment, Shanghai into a global city of excellence in line with and from the operation of the first joint venture retail China’s overall national strengths and international business to the establishment of China’s first pilot standing; an attractive city featuring a sound free trade zone, Shanghai has persistently functioned ecosystem, rich culture and dynamic innovation; as a pioneer in the national initiative of reform and a socialist modern metropolis of international opening-up, while unswervingly pursuing to open its prestige; and a leading city in the globally influential market ever wider. world-class city cluster in the Yangtze River Delta The remarkable achievements made in the past (YRD) region. To this end, Shanghai will continue four decades are translated into a historically to act in accordance with the highest international significant leapfrog development and great standards and best practices, while adhering to openness, making Shanghai the top city in the opening-up for further reforms and development. Chinese Mainland in terms of the amount of Taking full advantage of opportunities provided by foreign investments and number of regional the platforms and government policies such as the headquarters of transnational corporations. China (Shanghai) Pilot Free Trade Zone (SHFTZ), the Today, deeply integrated into the world economy, China International Import (CIIE), and the “100 new Shanghai has served as a new growth pole on measures for expanded opening-up”, the city will the global market and an accelerator for the keep strengthening its soft power in institutional development of multinational corporations, as best building, enhancing the optimization of business evidenced by Shanghai Disney Resort, the largest environment, and improving the quality of both joint venture project in China’s services sector, economic development and living environment. which has broken even within the shortest period With unraveling attention, patience and pursuit of operation among all the Disneyland theme of excellence, Shanghai will enhance its delicacy parks of similar scale, showing the strong market management to make itself a more attractive and potentials and high investment returns in Shanghai heart-warming city for everyone. In the context of and across China. a new round of reform and opening-up in China, Shanghai will, beyond any doubt, continue to Building on the glory of the fruitful four decades, bravely pioneer and stride forward. Shanghai is now marching into the new era of Table of Contents Chapter I Overview of Shanghai A Glance at Shanghai 2 Overview of Economic Growth Shanghai’s Initiative of “Five Centers” and Global City of Excellence Increasing the Brand Visibility of Shanghai B&R Initiative and China International Import Expo Chapter II Government Policies An Open Policy Environment 9 Supportive Policies for Regional Headquarters of Multinational Corporations and Foreign-invested R&D Centers Incentive Policies for Innovation in SHFTZ Industry Transformation and Upgrading Policies on Encouraging Scientific and Technological Innovation Policies on Encouraging Talent Recruitment Chapter III Government Services Fostering a Favorable Business Environment Aligned with International 16 Standards Improving Investment Service System Accelerating Innovation in Trade Services Improving Supporting Services for Intellectual Property Rights Providing Superior Talent Services Chapter IV Business Environment Overview of Foreign Investment 23 Regional Headquarters of Multinational Corporations Foreign-invested R&D Centers Globally Competitive Modern Manufacturing System International Trade Center Aligning with High Standards International Financial Center with Complete Factor Markets International Shipping Center Allocating Shipping Resources Globally Science and Technology Innovation Center with Global Influence Chapter V Infrastructure Commercial Facilities 35 Human Resources Educational and Medical Facilities Urban Living Environment Transportation Network Chapter VI Summary and Prospect 45 Shanghai’s overall competitiveness • City with the highest GDP in China • The most competitive city in China1 • An Alpha+ global city2 • One of the world’s top 10 megacities • No.5 in the Global Financial Centres Index3 • One of the world’s top 10 financially competitive emerging-market cities4 • The world’s largest gold trading center • The world’s second largest diamond trading center • No.1 in container throughput in the world for SHANGHAI eight years in a row A Glance at Shanghai A Wondrous Metropolis Where East Meets West As a world megacity and a central city in China, Boasting a long history and time-honored culture, Shanghai leads the Yangtze River Economic Belt and Chapter I Shanghai was acclaimed as a shining pearl on serves as China’s center for economy, transportation, the maritime Silk Road in the Yuan Dynasty. From technology, industry, finance, trade, convention and the early 20th century, the dynamic city has been exhibition, and shipping. In addition, it is where the Overview of Shanghai widely reputed to be “Paris of the East” and “a China (Shanghai) Pilot Free Trade Zone (SHFTZ), sea hub and a metropolis in southeastern China”, the first pilot free trade zone in mainland China, where a variety of cultures have blended and located. Equipped with a multi-level transportation prospered. The distinctive Shanghai-style culture network, Shanghai is welcoming all visitors from has developed from the traditional Chinese Wuyue around the world. Culture, interacting and integrating with the A Courageous Sailor of the Boat Western industrial culture. Shanghai is now a great Towards the Future city featured by a remarkable soul of diversification Guided by the new missions in the new era, Shanghai and inclusiveness, where thousand-year-old has made the enhancement of urban capacities and towns and modern high-rise buildings co-exist, core competitiveness as its dominant strategic goals the charming elegance of the East is blended with of development, in a bid to enable a better and more the open passion of the West, and the traditional globalized future. legacy is preserved through innovative and creative inheritance. Shanghai is attractive as a wondrous Taking advantage of its relatively developed high- metropolis that seeks harmony in diversity and end factor market, Shanghai will make focused shares the beauty of all cultures. efforts to develop its core urban functions and key areas, striving to make new breakthroughs in its core A Splendid Pearl Blessed with an functions as an international center for economy, Advantageous Location finance, trade, shipping, technology and innovation. Lying at the estuary of the Yangtze River in eastern In the meantime, tremendous efforts will be made China, Shanghai is hailed for its inclusiveness like “the to greatly enhance the development of many ocean that accepts all rivers”. It faces Japan’s Kyushu key areas, including brand building, institutional Island across the East China Sea, and neighbors innovation, reform and opening-up, innovation and the Hangzhou Bay in the south and Jiangsu and entrepreneurship, talent pool and quality life, on a Zhejiang Provinces in the west. new journey towards a global city of excellence. Note: 1. Released in December 2017 by the China Institute of City Competitiveness; 2. Released in January 2018 by the Globalization and World Cities Research Network (GaWC); 3. Released in September 2018 by the London-based Z/Yen Group Limited (the Global Financial Centres Index is the world’s most authoritative assessment of the competitiveness of the world’s leading financial centres); 4. Released in February 2018 by fDi Magazine, a Financial Times publication 2 2018 White Paper on Environment for Foreign Investment in Shanghai 3 Overview of Economic Growth Overview of Economic Growth (Continued) An Economic Leader in China Sound and Speedy Development of the Secondary Increasing Attraction for Foreign Investment High-quality Development of Capital Market Over the years, Shanghai has taken lead in GDP and GDP Industry In recent years, Shanghai keeps opening its doors and In 2017, Shanghai’s financial market transaction volume per capita, nearly at the same level as some developed In 2017, the industrial production in Shanghai grew steadily, has preliminarily established a new foreign capital-based reached RMB 1,428.44 trillion, an increase of 5.3% over the economies. In 2017, Shanghai became the first city in China with the industrial value added reaching RMB 830.35 development pattern driven by services,