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Press Release for Media Briefing of the Shanghai Municipal Government on May 15, 2020

May 15, 2020

The Information Office of Shanghai Municipality held a media briefing today (May 15), during which Wu Jincheng, director of the Shanghai Commission of Economy and Informatization, introduced the “Policy Measures on Accelerating the Construction of Distinctive Industrial Parks and Promoting Industrial Investment.” Lyu Ming, deputy director of the Shanghai Commission of Economy and Informatization, Qiu Wenjin, deputy director of the Shanghai Development and Reform Commission, Xu Jian, deputy director of Shanghai Planning and Natural Resources Bureau, and Zhang Zheng, deputy director of the Shanghai Housing and Urban-Rural Construction Management Committee, and Hou Jin, executive deputy director of the Shanghai Science and Technology Innovation Promotion Office, attended the press briefing and answered questions from reporters.

Accelerating the construction of distinctive industrial parks and expanding effective investment are key measures to improve integration and synergies between the innovation chain and the industry chain. On April 24, at the municipal government executive meeting, “Policy Measures for Accelerating the Construction of Distinctive Industrial Parks and Promoting Industrial Investment” (hereinafter referred to as “Policy Measures”) were reviewed and approved. The main contents of the “Policy Measures” are as following:

I. The drafting background of “Policy Measures”

In recent years, Shanghai’s industrial economy has maintained steady growth. However, this sudden epidemic has a great impact on the city’s economic development. It is urgent to expand effective investment in this special period, stimulate internal demand, cultivate new economic momentum, and drive production through the multiplier effect to hedge the negative impact of the epidemic. The city will strive to implement the central government’s requirements on stabilizing employment, finance, foreign trade, foreign investment and expectations, while guaranteeing the employment of residents, people’s basic livelihood, the stability of market players, the security of food and energy, the stability of the industrial and supply chains, and the operation of the grassroots entities.

On March 31, Shanghai held a ceremony for the collective signing of contracts for major industrial projects in 2020 and for the promotion of distinctive industrial parks. A total of 152 major industrial projects with a total investment of 441.8 billion yuan were signed, while 26 distinctive industrial parks and 60 square kilometers of new industrial space were officially released. Shanghai began to concentrate its firepower on accelerating the construction of major industrial projects, thus demonstrating “Shanghai Efficiency,” and refreshing “Shanghai Speed.” Since April, Shanghai has successively released a series of policies such as those for online new economy and digital new infrastructure. The purpose is to guide enterprises to expand effective investment, continuously boost investors’ confidence, and promote the development of leading industries, the upgrading of traditional industries, and the cultivation of strategic emerging industries.

On top of that, Shanghai has also released the “Policy Measures,” proposing multiple combinations of investment policies. The aim is to further play the key role of investments, do everything possible to accelerate the process, and improve business services, environment and support in a targeted way to stabilize the economic fundamentals, and enable the economy to return to a stable and healthy development track.

II. General considerations and significance of “Policy Measures”

The implementation of the “Policy Measures” is mainly to leverage the successful experience of Tesla Gigafactory project and strengthen policy optimization and top-level design, so as to foster a batch of Tesla-like projects, promote a batch of new industries as economic drivers, and create a batch of distinctive industrial parks to support sustained economic development. Three main considerations are highlighted. First, a series of integrated toolkits of policy measures shall be formed. The city will focus on investment promotion, technological innovation, financial services, business environment, and resources support to form a package of policy toolkits on a multidimensional basis to promote industrial investment. Secondly, the city will shore up innovation of policy measures, such as further relaxing the period of industrial land transfer and increasing the plot ratio of industrial land, driving investment in emerging industries by supporting the development of online new economy and digital new infrastructure, and making comprehensive use of investment subsidies, capital, loan discounts, entrusted loans and other methods to increase fiscal support. Thirdly, the city will form a joint force to ensure project implementation. The city is establishing a system under which municipal leaders are directly responsible for facilitating the implementation of projects with a total investment of over 10 billion yuan, and city-level departments will assign designated coordinators for projects with a total investment of over 1 billion yuan. During the whole process, all government departments shall closely collaborate to serve the companies and address their requests.

The promulgation of “Policy Measures” has significance in three aspects. First, it will help stabilize the economic fundamentals. In order to actively respond to the impact of the epidemic on economic development, the introduction of influential and effective policy measures in the critical period will help guide enterprises to expand effective investment, support emerging industries and innovative enterprises to buck the overall downward trend, and form effective power to drive economic growth. Secondly, it will help gather global innovation factor resources. By focusing on building distinctive industrial parks, the city is stepping up efforts to promote the 26 “small and beautiful” distinctive industrial parks, optimize the supporting services, and increase investment intensity and economic density. Thirdly, the city will stimulate new vitality of enterprises. With the new online economy, new industry formats and new digital infrastructure construction, it will provide a wide range of application scenarios and sufficient investment space, increase the willingness of enterprises to invest, and promote the coordinated development of the upstream and downstream industries.

III. Main contents of “Policy Measures”

The “Policy Measures” issued this time identify investment growth points, provide effective policies, and make innovations in investment policies comprehensively, from the aspects of planning, land, finance and services. The measures strive to achieve new breakthroughs in the aggregation of corporate headquarters, leading enterprises, flagship projects, functional platforms and hidden champions, so as to help prevent and control the COVID-19 epidemic and foster new momentum of economic transformation and development. The plan mainly involves five aspects:

Focus on industrial planning and layout to ensure that “in Shanghai, good projects do not lack land, and good industries do not lack industrial space for development.” First, the city shall adhere to the guidance of planning and give full play to the guiding role of industrial maps in industrial investment, based on the characteristics of industrial parks. The total planning area of the 26 distinctive industrial parks is about 108 square kilometers, which can provide more than 25 square kilometers in high-quality industrial land and more than 14 million square meters in property space. Secondly, the city shall strengthen the linkage between urban and suburban areas, central business districts and industrial parks, as well as enhance interaction among the Yangtze River Delta Integrated Demonstration Area, the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone, and other parts of the city, so as to support the reasonable migration of the city’s enterprises engaged in the real economy for their development and optimal allocation of resources.

Foster innovation momentum and create “online new economy and digital new infrastructure.” First, the city shall enhance the attraction of investment and industrial cultivation in 12 key areas of the online new economy, create a number of online new economic ecological parks with domestic and international influence, and form new scenarios and new momentum of the industrial economy. Secondly, the city shall pull in more strength in the construction of new infrastructures such as 5G base stations, industrial Internet, artificial intelligence, big data centers, internet-connected vehicles and smart grids, so as to promote the development of new technologies, new formats and new modes through project construction and application. In the past three years, the city has seen a total investment of about 200 billion yuan in more than 70 new digital infrastructure projects.

Guarantee the proper use of land in order to “make good use of incremental land, activate the use of existing land, and better coordinate the flow of land.” First, the city shall broaden the scope of projects that can enjoy 50 years of industrial land transfer, reduce the cost of land for high-quality enterprises, and adopt bottom-line management of land prices. The city shall support the cycled storage and timely supply of land in the park in a bid to “allow quality projects to have immediate available land and office space.” Secondly, the city shall increase the lower limit of plot ratio for industrial land: The plot ratio for industrial land should be no less than 2.0, while that for general research and development purposes should be no less than 3.0. The city shall also increase the proportion of mixed land for single-use industrial land.

Introduce fiscal and financial support policies and give full play to the guiding and leveraging role of the “four 100-billion-yuan funds.” First, the city shall set up a leading industrial fund totaling 100 billion yuan on three major industries: integrated circuits, artificial intelligence and biomedicine. Secondly, the city shall focus on key areas such as new networks, new facilities, new platforms and new terminals, and set up a new infrastructure credit preferential project with a total scale of 100 billion yuan. Thirdly, the city shall extend the medium to long-term low-interest loans from integrated circuits to include other sectors like artificial intelligence and biomedicine, and set up a medium to long-term credit special fund for advanced manufacturing industries with a total amount of 100 billion yuan. Fourthly, the city shall promote the transformation and upgrading of the park and establish a 100-billion-yuan fund for the secondary development of the park.

Strengthen support in investment promotion and optimize services in the whole process of project landing. First, the city shall further simplify the processes of environmental assessment and approval, construction permit, project completion and acceptance, and shorten the review cycle to optimize business environment. For talent introduced for key investment projects, priority shall be given to facilitating their household registrations, housing arrangements and children’s education. Entrepreneurs and businessmen are encouraged to attract more investment with the introduction of more incentives. Secondly, the city shall establish a system of major industrial projects for the speedy landing of these projects. The city shall strengthen precise services in the process of project landing from the aspects of service mechanism, factor guarantee and optimization of approval, and take the initiative to serve major industrial projects in project establishment, planning, environmental protection and construction submission.