A new policy for foreign investments within Shanghai city has been made and came out combining with the local reality in order to promote foreign investments and protect the lawful rights of foreign investments. This policy could be mainly divided into four parts, Shanghai Dongjin finds the points as follows:
First is to strengthen a higher level of further opening-up. Make sure it contains all directions for the relative national opening-up policies for services, push a pre-opening-up for finance as banking, securities, insurance, futures, trust investments, asset management and credit ratings, and promote the opening-up in the fields of telecommunications, Internet, medical treatments, transports, cultures and educations. State the special position for Pilot Free Trade Zones and Lin’gang New Area and the relative tax policies with global competiveness using Yangtze River delta as a cooperative platform. Push the cooperation between Import Expo and the promotion of foreign funds, and offer legal supports for the implementation of laws, regulations and resolutions.
Second is to focus on high-quality foreign investment. Promote innovation and upgrading through investments and encourage to build those Shanghai special foreign-funded platforms as regional headquarters of multinational corporations and foreign-funded R&D centers. Headquarters and functional institutions of multinational corporations in Shanghai may receive financial supports and facilitation treatments as personnel entry and exit, talent introductions, fund settlements, trade logistics and goods clearance. Financial institutions in Shanghai are also encouraged to provide multiple financing channels for foreign-funded enterprises. The income from investments within China could be domestically reinvest, if so the reinvestments would not be taxed withhold income tax.
Third is to highlight a more equal protection for foreign investment. Define the compensation standard for government collection, and the specific regulations for free entry and exit of foreign capital, protection of intellectual property rights, protection of trade secrets, participation in government procurement, formulation of policy documents, policy commitments, formulation of local standards and participation in franchising activities. Offer facilitation of foreign revenue and expenditure and electronic services for settlement using financial technology applications in banks and financial institutions. Obligees’ burden would be decreased as the processes of complaint system, arbitration, reconsideration and proceeding are all under clearer definition.
Fourth is to provide a more convenient and efficient government service for investment management. Relative departments shall offer consultations for foreign investors and foreign-funded enterprises. While investment in fixed assets is involved, the approval or record shall be applied before the project starts through the online approval and supervising platform for investment projects. The administrative departments of science and technology, entry and exit management shall provide foreign workers and staffs from foreign-funded enterprises with working permits and facilities such as entry, exit and stay.
This regulation would be effective on the date of November 1st, 2020.
If you want to read the complete article, you can refer to the below link (in Chinese only): http://www1.shanghaiinvest.com/cn/viewfile.php?id=15365
If you have any question, please contact me.
Mr. Mike Chang
TEL: 0086-21-68868321 / FAX: 0086-21-68868021