2021 SHANGHAI FOREIGN INVESTMENT GUIDE Preface Firmly committed to its original vision and building on its society at higher level. All these achievements have left glorious past, Shanghai is embarking on a new journey an impressive mark on Shanghai’s further reform and towards a brighter future. In the extraordinary year of opening-up for economic development in the new era. 2020, this socialist modern international metropolis that Opening a new chapter of development, Shanghai is has long led China’s opening to the world courageously actively devising a strategic roadmap for the 14th Five- braved adversity and achieved sustained, healthy Year Plan period (2021–2025). As a pioneer in China’s economic growth while maintaining overall social stability. national reform and opening-up and the leader in the The global economy suffered a deep recession in 2020 as Chinese Mainland in terms of the amount of foreign the devastating COVID-19 pandemic swept through the investment and number of regional headquarters, world, causing a year-on-year decrease of 40% in global Shanghai will bear the bulk of the challenges posed by foreign direct investment (FDI), among numerous other a transformed external environment while also enjoying worldwide challenges. Against the backdrop of such a new opportunities brought about by changes in the complex and severe international situation, Shanghai global governance system and economic and trade has continuously promoted higher-level opening-up in rules. During the 14th Five-Year Plan period, the forward- A City Known for Inclusiveness, the spirit of solidarity and cooperation. Under the new looking, globally-minded city will further push forward its development pattern, the metropolis has made vigorous Five-Center initiative and strengthen its “Four Functions”, efforts to attract overseas investors with more open with a view to improving its urban capacities and core and inclusive government policies in support of foreign- competitiveness. Focused efforts will be made to boost Excellence, Diversity and funded enterprises to develop soundly in a world-leading the “Five Types of Economy” – namely the innovation, business environment. These efforts have generated service, headquarters, open and flux economies – to buoyant economic dynamics characterized by robust create new economic advantages. Keeping abreast of resilience and great potential. Known for its inclusiveness, the most advanced international standards, Shanghai will Modesty pursuit of excellence, cultural diversity, and abiding take the lead in preliminarily building up new systems modesty, Shanghai has remained an attractive investment for a higher-standard open economy and shoulder the destination that ensures the regional headquarters of responsibility of driving the domestic economy and multinational corporations a more promising future. connecting it with international markets. In retrospect, during the 13th Five-Year Plan period (2016–2020), The year 2021 marks the 100th anniversary of the founding a critical phase in Shanghai’s development, remarkable of the Communist Party of China. At the beginning of a new progress has been made in the city with respect to era of China’s development, Shanghai remains a pathfinder comprehensive strength, further reform and opening- and is thus tasked with even greater missions. In 2021, up and modernization of urban management. As of the the first year of the 14th Five-Year Plan period, the city is end of 2020, Shanghai had substantially established itself determined to contribute to building a new development as an international economic, financial, trade and shipping pattern by strengthening sci-tech innovation, expanding center, and laid the framework for becoming a globally domestic demand, fostering the “Five Types of Economy”, influential science and technology innovation center. and further promoting reform and opening-up. In this Bolstered by its significantly improved overall capacity, critical period of strategic importance, Shanghai will forge international influence, living conditions and cultural ahead bravely through the challenges and seize the advancement, Shanghai is steadily developing into a socialist opportunities to achieve further development building on modern metropolis of global prestige. With stronger urban its glorious past towards a brighter future. capabilities and rising core competitiveness, the city is close to achieving the goal of building an all-around well-off 01 2021 SHANGHAI FOREIGN INVESTMENT GUIDE Contents Chapter I A Global City of Excellence 01 Achievements in the 13th Five-Year Plan Period and Major Targets and Tasks for the 14th Five-Year Plan Period Influx of Foreign Investment into the Pioneer of China’s Opening-up Enhancing Four Major Functions to Upgrade Urban Capacities Focusing on “Five Types of Economy” to Be a Pioneer in the New Era Chapter I Chapter II Highlighted Investment Areas 12 A Global City of Overview of Investment Areas A Glimpse at Shanghai’s Advantageous Industries Excellence Chapter III Districts and Specialized Zones 37 for Investment City Layout Leading Role of the Central Area Coordinated Development of Pudong and Hongqiao Booming Growth of New Towns Transformation of Baoshan and Jinshan Districts World-Class Eco-Island Chapter IV Professional Investment Services 60 First-class Business Environment Supporting Policies for Investment Foreign Investment Promotion System Services and Protection for Foreign Investment Appendix 70 02 03 Achievements in the 13th Five-Year Plan Period and Major Targets and Tasks for the 14th Five-Year Plan Period 2021 SHANGHAI FOREIGN INVESTMENT GUIDE Achievements in the 13th Five-Year Plan Period and Major Targets and Tasks for the 14th Five-Year Plan Period Committed to high-quality development in its 13th Five-Year Plan period, Shanghai rose among top-ranking global cities with a large During the 13th Five-Year Plan period, Shanghai had built itself into an international center of economy, finance, trade and shipping, increase in GDP, and took the lead in China in developing an industry structure with the service sector as the mainstay. In 2020, and developed a basic framework for building a sci-tech innovation center with global influence. The city played a greater role in the GDP of Shanghai topped RMB 3.87 trillion, while the GDP per capita reached over USD 23,000. allocating global resources, nurturing sci-tech innovations, supporting high-end industry and further opening up the gateway to the world, greatly improving its urban capacities and core competitiveness. GDP (In RMB Billion) 2015 3,815.5 3,870.1 GDP per capita (In USD) 2020 Economy Shanghai is one of the ten Alpha+ cities in the world1, and is expected to be No.4 jointly with London in the 2 3,268.0 Continuous increase 2035 GDP Rankings of Major Cities according to the forecast of Oxford Economics 3,060.0 in the number of 2,817.9 newly established th 3 2,496.5 296,700 417,900 Finance Shanghai is No.3 in the 28 edition of Global Financial Centers Index (GFCI) , and No.1 in the China Financial 22,802 23,000 market entities 4 20,398 Centers Index (CFCI) in terms of comprehensive competitiveness and financial market scale 18,756 17,202 17,551 RMB RMB Trade Shanghai is the world’s largest port city for international trade, and Shanghai Port is No.2 globally for the Steady growth in 551.95 704.63 number of international retailers fiscal revenues billion billion Shipping Shanghai is No.3 in the 2020 Xinhua-Baltic International Shipping Center Development Index5, and No.1 worldwide for container throughput 2015 2016 2017 2018 2019 2020 Constant rise in RMB RMB Sci-Tech Shanghai’s GDP and GDP per capita in the the per capita Shanghai is No.5 in the Nature Index 2020 Science Cities published by British journal Nature, moving up three th Innovation 6 13 Five-Year Plan Period disposable income 49,867 72,232 places compared to 2016 Source: 1. Statistical Yearbook of Shanghai (2019); 2. Economic development data of Shanghai in 2020 officially released by Shanghai Municipal Statistics Bureau; th 3. Economic development data of Shanghai in 2015 officially released by Shanghai Municipal Statistics Bureau In the 13 Five-Year Plan period, Shanghai had seen great improvements in its urban development and management. Through development of the Government Online-Offline Shanghai Portal and the Single Platform for Urban Management, Shanghai further In the 13th Five-Year Plan period where an all-around opening-up was deepened, Shanghai took the chance of establishing the enhanced its overall governance. The highly effective prevention and control of the COVID-19 epidemic evidenced the megacity's Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone (SHFTZ) to explore a new path of opening-up-based reform and capabilities of risk prevention and emergency response. development, optimized the advancement of a multiple-level capital market by implementing the innovative registration-based IPO Government Online-Offline Shanghai Portal Single Platform for Urban Management system for the Sci-Tech Innovation Board, or the STAR market, and promoted integrated development of the Yangtze River Delta • An urban management platform operated at the municipal, (YRD) region, giving a tremendous impetus to high-quality economic growth. • The number of registered users increased district and sub-district/town levels was built, and an from 10.24 million to 44.16 million. Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone application structure was developed at the municipal, • 173,000 service items could be processed district, sub-district/town, grid and community levels, Building a powerhouse of opening-up serving the new growth pattern based on daily, 58% of which were handled online, up by enabling coordinated management of key application “5+1+2” institutional innovations, namely, free investment, free trade, free capital 30.3 percentage points. scenarios, such as flood and typhoon prevention and flow, free transportation and free mobility of practitioners, quick and convenient flow of • 321 administrative items could be handled transportation management.