Twenty four new policies will effect in Shanghai for the purpose of further improving the city's business environment and soliciting more foreign investors. The new policies are introduced to implement the state's deepened opening-up policies, step up investment promotion, make business opportunities more accessible to foreign investors and better protect their legal rights. Shanghai Dongjin finds the below as the main points.

• Press ahead with the construction resumption of key projects

Shanghai will support foreign investors to enter the industries stressed in the country's new round of opening-up. Shanghai will speed up the opening-up of sectors such as the financial and new-energy vehicle industries.

More efforts will be made to further open up the China (Shanghai) Pilot Free Trade Zone, especially its newly launched Lingang Special Area. Telecommunications, science and R&D services, education and healthcare will be the industries in the limelight for further opening-up.

• Strengthen the promotion of the foreign investment

Shanghai will also offer financial support for investment promotion events, and will encourage district-level governments to offer aid for such activities. Additional incentives will be offered to those that have successfully introduced foreign investment projects which contribute toward the local economy.

Training sessions will be held and investment guidelines will be drawn up in each district to offer convenience for existing and potential investors.

Shanghai will improve communication between the government and foreign-invested companies by holding regular round table talks and other events to help enterprises address challenges and difficulties.

• Deepen the Reform of Investment Facilitation

Support the cross border investment facilitation. Simplify the operation of foreign direct investment business at the bank end. Carry out the pilot project of capital project income payment facilitation in the whole city, and allow eligible enterprises to use the capital, foreign debt, overseas listed capital and other capital project income for domestic payment without providing the authenticity proof materials one by one in advance. Shanghai will promote the facilitation of foreign debt registration and management. If it is not a foreign investment enterprise, it is allowed to use the capital to set up new subsidiaries or merge other domestic enterprises according to law, on the premise of not violating the current negative list of foreign investment access and the invested project is authentic and compliance of the law in China. Shanghai will also explore and implement measures to facilitate the purchase of foreign exchange for foreign talents.

• Optimize the overall investment environment

Shanghai will perfect the mechanism for foreign investors to file complaints and better protect their legal rights. Heavier penalties will be imposed on those who have significantly infringed upon foreign companies' intellectual property rights.

District-level and industry authorities will seek opinions from foreign-invested companies and relevant commerce and industry associations before officially issuing any key policies and regulations.

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Mr. Mike Chang

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