2020 SHANGHAI FOREIGN INVESTMENT GUIDE SHANGHAI FOREIGN SHANGHAI FOREIGN INVESTMENT GUIDE INVESTMENT GUIDE Contents Investment Chapter II Promotion 61 Highlighted Investment Areas 10 Institutions Preface 01 Overview of Investment Areas A Glimpse at Shanghai's Advantageous Industries Appendix 66 Chapter I A City Abundant in 03 Chapter III Investment Opportunities Districts and Functional 40 Enhancing Urban Capacities Zones for Investment and Core Functions Districts and Investment Influx of Foreign Investments into Highlights the Pioneer of China’s Opening-up Key Functional Zones Further Opening-up Measures in Support of Local Development SHANGHAI FOREIGN SHANGHAI FOREIGN 01 INVESTMENT GUIDE INVESTMENT GUIDE 02 Preface Situated on the east coast of China highest international standards Secondly, the openness of Shanghai Shanghai is becoming one of the most At the beginning of 2020, Shang- SHFTZ with a new area included; near the mouth of the Yangtze River, and best practices. As China’s most translates into a most desired invest- desired investment destinations for hai released the 3.0 version of its operating the SSE STAR Market with Shanghai is internationally known as important gateway to the world, ment destination in the world char- foreign investors. business environment reform plan its pilot registration-based IPO sys- a pioneer of China’s opening to the Shanghai has persistently functioned acterized by increasing vitality and Thirdly, the openness of Shanghai is – the Implementation Plan on Deep- tem; and promoting the integrated world for its inclusiveness, pursuit as a leader in the national opening- optimized business environment. shown in its pursuit of world-lead- ening the All-round Development of a development of the YRD region as of excellence, cultural diversity, and up initiative. From the establishment Government authorities in Shanghai ing science and technology inno- World-leading Business Environment in a national strategy, Shanghai will magnificent modesty. of China’s first bonded zone to the have made a point of offering local vations that empower high-quality Shanghai. Aiming to further improve continue to forge closer cooperation Today, Shanghai has bravely taken inauguration of the country’s first businesses expedient administrative economic development. As a leader local business environment, the plan with foreign investors in more sec- on “the most challenging tasks to pilot free trade zone, and from the services through government programs of the national opening-up, the specifies 36 measures to optimize tors. A forerunner in China’s reform continuously improve its urban operation of the first joint venture retail and policies that better meet their economic growth along the Yangtze the administrative services provided and opening-up as well as innova- capacities, core competitiveness business to the implementation of the needs. While promoting the branding River Economic Belt and the integrated through the All-in-one Portal, increase tion-driven development, Shanghai and governance as a modern first negative list of foreign investment, of “Shanghai Service” supported by the development of the Yangtze River Delta the international competitiveness is set to further thrive and create socialist metropolis of international Shanghai continuously expands its city’s tradition of providing premium (YRD) region, Shanghai is playing a of Shanghai in attracting foreign new miracles that will continuously influence”, as encouraged by the openness-based new economic system services, the Shanghai Municipal crucial role as a world’s strongest center investment, provide enhanced propel national growth and benefit Chinese President Xi Jinping during in line with international communities. Government has introduced a series of concentrated global innovation institutional arrangements to better the world. his visit to the city in November In 2019, the Lin-gang Special Area of the of reform programs and policies resources. Shanghai has seen a series protect and encourage operations of 2019. Marching towards new goals, China (Shanghai) Pilot Free Trade Zone aiming to extensively improve business of iconic innovation achievements market players, and strengthen the the city at the forefront of China’s (SHFTZ) was inaugurated as a special environment with a focus on ensuring and a rapid development of world- support from government agencies. opening-up endeavor is dedicated economic function zone benchmarked the satisfaction of businesses and class industry clusters characterized by As emphasized by Li Qiang, Secretary to playing a greater role in allocating against the most competitive free service providers. In addition to the the trial flights of China’s homemade of the Chinese Communist Party global resources, nurturing sci-tech trade zones recognized internationally. 164 reform programs and policies C919 large passenger plane, the first- Shanghai Municipal Committee, at innovations, supporting high-end Enabling the free flow of investment, introduced over the past two years, ever cloning of macaque monkeys the Shanghai Business Environment industries and further opening up the trade, capital, transportation and the government is planning to issue via somatic-cell nuclear transfer, Improvement and Investment gateway to the world. In this way, high- personnel, it has further intensified 122 new measures to effectively establishment of the world’s largest Promotion Convention, additional quality economic growth and more Shanghai’s efforts to liberalize and benefit more local businesses in a photonic science center in Zhangjiang, efforts will be made in accordance miraculous achievements will be seen facilitate investment and trade. While more targeted manner. Thanks to and launch of the Sci-Tech Innovation with the instructions of Xi Jinping to in a more liberalized and inclusive deepening its all-round institutional these remarkable efforts, Shanghai Board, or the STAR Market, at the resolutely deepen the development market driven by greater innovation innovation, Shanghai plans to continue attracted a record-breaking total of Shanghai Stock Exchange (SSE) with its of a more competitive business momentum. its active role in this area in the next paid-in foreign investment up to USD pilot registration-based IPO system. Sci- environment. 30 years with greater momentum 19.048 billion in 2019, averaging over Firstly, the openness of Shanghai tech innovation has become the key To maintain its steady progress in to attract and better allocate global USD 52 million a day. As best shown means developing itself into a global force driving Shanghai’s transformation the “three major tasks” put forward resources and optimize its urban in the active performance of investors city of excellence in line with the into a global city of excellence. by President Xi – expanding the capacities and core competitiveness. and concentration of market players, SHANGHAI FOREIGN SHANGHAI FOREIGN 03 INVESTMENT GUIDE INVESTMENT GUIDE 04 Enhancing Urban Capacities and Core Functions As China’s largest economic center, Shanghai exhibits buoyant economic dynamics characterized by robust resilience and inclusiveness. In the New Era, the vibrant city is focusing on core urban functions and key areas to develop itself into an international center of economy, finance, trade, shipping and sci-tech innovation, as well as a global city of excellence and a Chapter I modern socialist metropolis with international appeal, boasting higher-quality development driven by further opening-up. Shanghai grows faster than most of the world’s major cities in terms of GDP, recording a A City Abundant compound annual growth rate of 11.56% between 2001–2019. GDP: In RMB Billion RMB 27.3 billion RMB 3.8155 trillion in Investment GDP Per Capita: In RMB 3,268.0 3,815.5 3.063.3 2,256.8 2,817.9 GDP 2,512.3 126,634 134,982 157,421 116,562 Opportunities 97,370 103,796 RMB 2,500 RMB 157,000 GDP Per Capita 2014 2015 2016 2017 2018 2019 Shanghai’s GDP and GDP Per Capita (2014–2019) 1978 2019 Shanghai has achieved remarkable progress in its Initiative of “Five Centers”, showed strong economic resilience and vitality, and enhanced its urban capacities and core competitiveness in every aspect. • Shanghai is one of the world’s top ten economically vibrant cities. • According to the study of Oxford Economics in 2018, Shanghai was expected to rank fourth in the 2035 Global GDP Rankings of Major Cities, jointly with London. Economy • As of the end of 2019, 70 enterprises • Shanghai takes the fourth place had launched their IPOs on the Sci- in the Global Financial Centers ence and Technology Innovation Index (GFCI 27) in 2020. Board, or the STAR Market. Sci-Tech Finance • Shanghai is No.1 in China accord- • In 2019, the total funds devoted to Innova- ing to the China Financial Centers research and test (R&D expenditure) tion Index in terms of comprehensive in Shanghai accounted for 4% of the competitiveness and financial local GDP, marking an increase for market scale. nine consecutive years. • Shanghai ranked fourth in the 2019 • Shanghai is the world’s largest port Xinhua-Baltic International Shipping Centre city for international trade. Development Index. Shipping Trade • Shanghai ranks second globally in • Shanghai Port has topped the list of global terms of the intensity of internation- ports in terms of container throughput for al retailers. ten consecutive years. SHANGHAI FOREIGN SHANGHAI FOREIGN 05 INVESTMENT GUIDE INVESTMENT GUIDE 06 Strengthening Four Major Functions to Promote