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Press Release for July 11, 2018 Media Briefing by the Shanghai Municipal People’s Government

July 12, 2018

The Information Office of Shanghai Municipality held a press conference today (July 11). Zhou Bo, Shanghai’s executive vice mayor, briefed the media about Shanghai’s action plan to implement opening-up measures in accordance with the central government's plan and accelerate the development to build an open economy. Ma Chunlei, deputy secretary-general of the municipal government and director of the Shanghai Development and Reform Commission, Zhu Min, deputy director of the Shanghai Development and Reform Commission, Huang Ou, vice chairman of the Shanghai Commission of Economy and Informatization, Shen Weihua, deputy director of the Shanghai Commission of Commerce, Ruan Li, deputy director general of Shanghai Administration for Industry and Commerce, Rui Wenbiao, deputy director general of Shanghai Intellectual Property Administration, Li Jun, deputy director of Shanghai Finance and Li Zhaojie, deputy director of China (Shanghai) Pilot Free Trade Zone were also present at the conference and took questions together from the reporters.

In order to implement Xi Jinping’s new era of socialism with Chinese characteristics, implement key measures for further opening up put forward by President Xi during the Boao Forum for Asia as well as accelerate the development to build an open economy. Recently, based on in-depth research and listening to opinions, Shanghai Party Committee and Shanghai Municipal Government have formulated and formulated the action plan to Implement key measures to further expand and opening up in accordance with the central government's plan and accelerate the development to build an open economy. The abbreviation of the action plan is named newly-released 100 measures aimed at promoting opening up.

I Background and overall considerations for the newly-released 100 measures aimed at promoting opening up

This year marks the 40th anniversary of reform and opening up. Looking outward, the global environment for economic development tends to be complex and volatile, with rising instability and uncertainty. Internally, the actual demand for economic structure transformation and upgrade will exist for a long time. The Communist Party of China Central Committee and the State Council have taken the time to make an initiative to open the market to the world and open a new round of high-level opening up. On April 10, President Xi Jinping announced key measures during the opening ceremony of the Boao Forum for Asia and requested to implement these measures as soon as possible. Shanghai has the biggest advantage in terms of opening up. Standing at a new starting point, Shanghai will implement the central government's plan, further opening up to the world and constantly create a more comprehensive, in-depth and diverse opening up mechanism in order to build an open economy.

The overall considerations of the newly-released 100 measures is to fully implement the spirit of 19th National Congress of the Communist Party of China, the second plenary session of the 19th CPC Central Committee, the third plenary session of the 19th CPC Central Committee. Shanghai will firmly set up a new development concept of innovation, coordination, environmental-friendly, opening up and sharing. The city will also persist in serving the national strategy, emancipate the mind and have courage to be the pioneer in terms of development. Shanghai will take China (Shanghai) Pilot Free Trade Zone as an open experimental field in order to comprehensively deepening reforms actively. In all, formulation of the action plan is mainly based on three considerations:

1. Implement the strategic plan of the central government and be in the vanguard of the reform and opening-up. To embark on the new journey of the reform and opening-up and to deepen the structural reform in supply side, Shanghai puts the implementation of national measures to expand opening-up in priority. To promote a new-look reform and opening-up that has clear highlights, proper structure, safety and efficiency, fair competition and tolerance, Shanghai accelerates to build it into the center of international economy, finance, trade and scientific innovation. To boost high quality development by high-end opening-up, Shanghai will shoulder the task assigned by the central government to be the pioneer of the reform and opening-up.

2. Give play to Shanghai’s advantages and serve for national strategies. In principle, as for opening-up policies uniformly implemented by the nation, Shanghai should take the lead in practicing them. As for opening-up plans uniformly mapped out, Shanghai should endeavor to be the first to pilot them. As for opening-up projects with strategic importance but short of conditions to fully implement, Shanghai should ask for the pioneer implementation in the city. As for explorative opening-up measures remained in study, Shanghai should strive for the stress testing. Moreover the remedy for weak spots in the opening-up field should be speeded up. Of the 100 opening-up measures, 34 measures, one third of the overall need to further seek state support, reflecting Shanghai’s braveness and determination to opening-up.

3. Enhance the mutual-beneficial relationship between opening-up and the construction of “five centers” and improve urban function level and core competitive power. Shanghai should focus on building it into a new and high-end highland of the reform and opening-up and improving unban function level to promote the core function of the economic-center Shanghai. The top level is our benchmark and our aim. We should focus on fields with strong comparative advantages and economic radiation power. We should further promote the optimization of resource allocation. We should actively create new core advantages by introducing low cost funds, hi-tech technology, advanced administration and top talents. We should ensure that with the aid of Shanghai, enterprises can make full use of domestic and international markets and resources and participate in the competition and allocation of global value to build the core competiveness.

II Main content and features of Shanghai’s 100 new measures to expand opening-up

The planning focuses on five aspects in 100 measures: the opening-up and international corporation in financial industry, the construction of more open industrial system, the construction of a highland of intellectual property protection, the development of new import promotion platforms and the creation of top business environment.

1. To improve international financial center level of Shanghai by enhanced opening-up and cooperation. It includes 32 measures in 3 aspects: the first one is to bring the national opening-up measures into detailed practice. For example, “remove restrictions on foreign shareholding in banks and asset-management companies, support foreign banks establish branches and subsidiaries”. The second one is to ask for the pilot practice of some opening-up planning. For instance, as for the instruction of removing the limit on foreign shareholding in life insurance companies in three years, the measure goes this way “endeavor to remove the limit on foreign shareholding in life insurance companies in three years”. The third one is to highlight market advantages and functional features of Shanghai, including advantages such as financial factor markets and free trade accounts. For example, “support foreign enterprises and investors to partake in Shanghai securities market; amend and improve regulations of listing and the like”.

2. To build a more open modern service industry and advanced manufacturing industry system, which includes 17 specific measures and mainly focuses three aspects: First, reflecting the advantage of Shanghai's opening policies. For example, "attracting foreign-funded new energy vehicle projects”, “accelerating the scrapping of restrictions on foreign-investment ratios in the auto industry and the number of joint ventures in automakers in accordance with national deployments”. Second, to reflect the multi-level open advantages of the Shanghai service industry. It has proposed opening measures in the fields of investment companies, training institutions, value-added telecommunications service, engineering design, legal services, human resources agencies, and international transportation. Third, to reflect the new trend of international industry development, with focus on exploring the maintenance and manufacturing of key technical areas that are in high demand in China, as well as new modes supervision such as maintenance in the bonded areas and warehouses.

3. To Construct high-standard intellectual property protection environment with open sharing and internal and external linkages. A total of 15 specific measures have been included, which mainly focus three aspects: Firstly, to improve the effectiveness of intellectual property protection, such as "unified standards for criminal offences", "strengthen the public prosecution of intellectual property criminal cases", carry out special campaigns such as "Qingfeng" and "Longteng". Secondly, to strengthen the ability of intellectual property rights to defend overseas rights, such as building an international defense intellectual property rights overseas rights base, and setting up a trademark overseas rights protection office. Thirdly, to enhance the functions of intellectual property services, such as strengthening the service capacity of the trademark registration works which complies with the Madrid Agreement Concerning the International Registration of Marks and to establish the Copyright Service Center of the China (Shanghai) Free Trade Zone.

4. To create a new platform to encourage import that is more influential in the international market. This include 26 specific measures, mainly focuses in three aspects: Firstly, to take the lead in the service of the national strategy. To Take the opportunity of hosting the China International Import Expo to promote the innovation of customs affairs guarantee methods, and the exhibition and showcase of imported goods within the bonded areas under normal circumstances. Secondly, to reflect the characteristics and advantages of Shanghai's port trade, which focuses on imports of drugs, medical equipment, cosmetics, as well as other fields such as jewelry transactions, cross-border e-commerce. Thirdly, to jointly promote and facilitate the convenience of trade of goods and services. In combination with the cross-border trade and business environment reform, the “customs clearance + logistics” function was put forward, and the tax rebate at the port of departure and a number of trade facilitation methods will be studied and put into effect. In terms of service trade, policies such as financial leasing and entrusted supervision from a separate region of jurisdiction have been proposed and would be put into effect.

5. To create a first-class business environment with international level, rule of law, and convenience, which includes 10 specific measures, highlighting Shanghai's characteristics in the field of business environment reform, such as the management of negative list, management of foreign investment, the approval of services, the separation of business of certificates and government approval, and to deepen efforts to promote reform measures to enhance business environment.

"The 100 new measures for Shanghai's expansion and opening up" is an action plan, not an implementation opinion. Down to earth" is the most prominent feature when drawing up the 100 new measures. Firstly, the four important measures that highlight the country's expansion and opening up have been reflected in specific measures in Shanghai. Secondly, Shanghai's advantage as a highly open regional economy and a metropolitan with high degree of internationalization has been highlighted. Shanghai will continue to explore innovative breakthroughs in opening up and explore the establishment of an open economic new system. Overall, the action plan reflects three highlights:

First is the construction of a broad framework for opening up toward both internal and external world. One, the action plan emphasizes on equal opening up for not only foreign investors, but private ones as well. Two, the opening up is not confined by industries, but an overall movement covering both hardware and software.

Second is its opening up for both new and existing investors. Shanghai will attract more quality foreign investment, and at the same time, encourage existing companies to partner with foreign investors and raise the proportion of shares owned by foreigners. Third is its nature of opening up in both policies and systemic framework. The action plan stresses feasibility and practicality. According to preliminary calculation, more than 90 percent of the 100 new measures can be implemented within this year. The tasks in the five areas all have clear and detailed targets for implementation; projects like corporate headquarters and R&D centers will continue their growth; and the city will unveil its roadmap and timetable for a systemic opening up in the next step.

III Safeguard measures for implementation of the 100 new measures for Shanghai’s further opening up efforts

Shanghai will carry out the new measures in accordance with the central government’s orders. Regional measures not involving the central government will take effect immediately after their release. The majority of the new measures are expected to be launched in the third quarter of this year. To manage it, we have made safeguard measures concerning three aspects.

First is the establishment of a working mechanism led by city officials. The five aspects in the action plan for further opening up all point out specific government officials and departments to take responsibility. It can help to raise the efficiency and quality of the implementation of the new measures.

Second is the construction of opening up platforms with Shanghai characteristics. Under the requirement of the central government, the China (Shanghai) Pilot Free Trade Zone should further liberate its mindset and explore in the trials for a new round of systemic reform and opening up. Meanwhile, the city will support its districts to further open up in key areas with their own features, building up distinct brands in each district to have the effect of agglomeration.

Third is better policy support. The city will focus on key tasks and key projects, making good use of policies in plan, finance and human resources to provide a strong support for the implementation of measures.

The 100 new measures for Shanghai’s further opening up is guidance and mobilization for the city’s all industries and all people. After the release of the action plan, the government departments at all levels will make joint efforts for its implementation, triggering a new round of brand building of Shanghai’s reform and opening up.