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2020 White Paper on Environment for Foreign Investment in Shanghai

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2020 White Paper on Environment for Foreign Investment in Shanghai 2020 White Paper On Environment for Foreign Investment in Shanghai Edited by Shanghai Municipal Commission of Commerce Preface During the Global Trade in Services the opening-up and development of Summit of the 2020 China International the Pudong New Area. Having trans- Fair for Trade in Services, Chinese formed from a rural farmland to a pros- President Xi Jinping called on the perous modern urban area, Pudong will international community to jointly foster continue to create economic miracles in an open and inclusive environment the New Era. for cooperation, unleash the power Unswervingly upholding the opening- of innovation in driving cooperation up policy along its development path, forward, and promote mutually bene- Shanghai has created and perfected its ficial cooperation. His speech rallies own ways of embracing opportunities confidence in the global recovery and challenges. Amidst the current amidst the COVID-19 pandemic. health crisis when opening-up for close “Our world is going through profound cooperation is needed more than ever, changes unseen in a century, and the Shanghai has kept its doors wide open. COVID-19 pandemic is accelerating such It has ensured existing and potential changes,” said President Xi. In this trying regional headquarters of transnational time, solidarity is key. With its people corporations a more promising future. united as one, China has demonstrated As a pioneer in the national initiative its strength, efficiency and speed in this of reform and opening-up, Shanghai fight and received global recognition. In has become a new growth pole on addition, it is the first economy to show the global market and an accelerator signs of recovery and has proven to be for the development of multinational highly resilient and have great potential. corporations. In China’s economic map, Shanghai In the New Era, Shanghai is entrusted stands out like a bright star and the with the responsibility of driving the year 2020 is an important milestone in domestic economy and connecting the city’s development roadmap. While it with international markets. Taking the world is increasingly plagued by on such an important role, the city various risks and challenges, Shanghai will continue to optimize its business has stayed true to its goals. In regards to environment, and launch a new round the “Five-Center” initiative, Shanghai will of market-oriented reform policies for preliminarily establish itself as an interna- more efficient resource aggregation and tional center of economy, finance, trade distribution. At the 9th Plenary Session of and shipping, and lay the framework the 11th Shanghai Municipal Committee in becoming a science and technology of the Communist Party of China, it was innovation center with global influence made clear that efforts must be devoted by the end of this year. The city has been to building Shanghai into a socialist making all-out efforts to push forward modern metropolis of international the “Three Missions” program from prestige, and a strong representative of the beginning of 2020 and has made China in international cooperation and significant progress on all three fronts: competition. It must take the lead in glo- An opening-up policy and institution balization, trend setting and upgrading framework is in place in the Lin-gang of fundamental functions. To this end, Special Area of China (Shanghai) Pilot Shanghai will act in accordance with Free Trade Zone (SHFTZ); the Shanghai the highest international standards and Stock Exchange Science and Technology best practices to deepen reforms and Innovation Board (the SSE STAR Market) strengthen innovation, proactively carry is playing an increasingly greater role in out more pilot programs for opening-up, developing an open, transparent and and develop an internationally competi- well-regulated capital market; and the tive system to better connect to global high-quality integrated development of markets. Already a pioneer in China, the the Yangtze River Delta (YRD) region has city is determined to attain new heights been steadily progressing. Furthermore, in the future. this year marks the 30th anniversary of Table of Contents Chapter I Overview of Shanghai A Glance at Shanghai 2 Overview of Economic Growth Three Missions One Platform Thirty Years of Reform and Opening-up in the Pudong New Area Five-Center Initiative – Building a Global City of Excellence Four Functions – Strengthening the Core Competitiveness of Shanghai Chapter II Government Policies An Open and Stable Policy Environment 13 Supportive Policies for the Headquarters Economy Innovative Policies for the Lin-gang Special Area of SHFTZ Institutional Innovation in the SHFTZ Innovative Development in the Hongqiao Central Business District Incentive Policies for Science and Technology Innovation Incentive Policies for Talent Recruitment Chapter III Government Services Fostering a Favorable Business Environment Aligned with International Standards 22 Improving Investment Service System Accelerating Innovation in Services Trade Improving Supporting Services for Intellectual Properties Providing Superior Talent Services Chapter IV Business Environment Overview of Foreign Investment 28 Overview of Regional Headquarters of Multinational Corporations Overview of Foreign-invested R&D Centers Globally Competitive Modern Manufacturing System An International Trade Center Aligned with High Standards An International Financial Center with Complete Factor Markets An International Shipping Center Allocating Shipping Resources Globally A Global Science and Technology Innovation Center Chapter V Infrastructure Commercial Facilities 40 Human Resources Educational Facilities Medical Facilities Urban Living Environment Transportation Networks Chapter VI Summary and Prospect 51 Chapter I Overview of Shanghai A Glance at Shanghai A Wondrous Metropolis Where East Meets West Boasting a long history and time-honored culture, Shanghai was acclaimed as a shining pearl on the maritime Silk Road in the Yuan Dynasty (1279-1368). From the early 20th century, the dynamic city has been widely reputed to be “Paris of the East” and “a sea hub and a metropolis in southeastern China”, where a variety of cultures have blended and prospered. The distinctive Shanghai-style culture has developed from the traditional Chinese Wuyue culture, interacting and integrating with the Western industrial culture. Shanghai is now a great city featuring a remarkable soul of diversification and inclusiveness, where thousand-year-old towns and modern high-rise buildings co-exist, the charming elegance of the East is blended with the open passion of the West, and the traditional legacy is preserved through innovative and creative inheritance. Shanghai is attractive as a wondrous metropolis that seeks harmony in diversity and shares the beauty of all cultures. the East China Sea, and neighbors the Hangzhou Bay A Splendid Pearl Blessed with an Advantageous in the south and Jiangsu and Zhejiang Provinces in the Location west. Equipped with a multi-level transportation network, Lying at the estuary of the Yangtze River in eastern China, Shanghai is welcoming all visitors from around the world. Shanghai is hailed for its inclusiveness like “the ocean that When visiting Shanghai in November 2019 for the second accepts all rivers”. It faces Japan’s Kyushu Island across consecutive year, President Xi Jinping made it clear that the city must enhance its functions in allocating global Highlights of Shanghai resources, nurturing sci-tech innovations, propelling high- • An Alpha+ global city1 & one of the world’s top 10 end industries and pioneering China’s expanded opening- megacities up, in addition to fulfilling the “Three Missions” he set for • The largest economic center in China the city at the first China International Import Expo (CIIE). In • The highest GDP in China response, Shanghai has been prioritizing the strengthening • The highest per capita disposable income in China of the “Four Functions” in its pursuit of high-quality economic growth and accelerated establishment of a • The largest volume of trade in services in China socialist modern metropolis enjoying international prestige. • The most competitive city in China 2 A Courageous Sailor of the Boat Towards the Future • No.3 in the Global Financial Centers Index Looking ahead, amid COVID-19 and major changes unfolding • One of the world’s 10 most economically vibrant cities3 in the world, Shanghai is honored to take on the crucial No.1 in the China Financial Centers Index in terms of • responsibility of driving the domestic economic circulation and comprehensive competitiveness and financial market connecting it with the international circulation. scale4 Taking advantage of its relatively developed high-end factor The world’s largest gold trading center • market, Shanghai will continue to strengthen local economy • The world’s second largest diamond trading center by making it more open and innovation-driven, further • The world’s second largest futures trading center focusing on the services industry, and attracting more • One of the world’s three pricing centers for non- headquarters and resources. Relentless efforts will also ferrous metals be made to enhance the city’s capacity as an international • Home to one of the world’s busiest ports – Shanghai center for economy, finance, trade, shipping, and sci-tech Port, which tops the world for the 10th consecutive innovation featuring strengthened “Four Functions” and year in container throughput key areas including brand
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