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Guideline on boosting the city’s emerging industries and completing the categories of emerging industries

Oct 30, 2017

The Shanghai Municipal Government’s Information Office held a press conference on September 28 on the guideline on boosting the city’s emerging industries and completing the categories of emerging industries. Following are the highlights:

 

Zhong Min, deputy director, Shanghai Industrial and Commercial Administration

Qiu Wenjin, deputy inspector, Shanghai Development and Reform Commission

Huang Ou, deputy director, Shanghai Commission of Economy and Informatization

Fu Quoqing, chief engineer, Shanghai Science and Technology Commission

Xu Wei, spokesman, Shanghai Municipal Government

China National Radio: The guideline can solve the registration problem of new industries, but new industries keep sprouting up, for example quantum communication. What kind of industries can be included in the new industry guideline, and what are the standards?

Zhong Min: The guideline was not introduced just to solve the registration problem for new industries it also specifies scope of business, commercial and industrial registration, tax collection and management, and a miscellaneous assortment of government services and management. We would need collaboration from six governmental departments to implement the guideline.

As long as the new industry abides by the law, it can be included in the guideline. In case where some companies take advantage of loopholes in the law or when it’s difficult to define, we would refer to documents, and consult with professionals.

Qiu Wenjin: The industrial and commercial administration, the tax administration, and the statistics department need to work together to make sure the new industries and companies meet the criteria that are included in the guideline. The guideline has its merits as well as its lag time. So we need interdepartmental consultation and debate to define the new industries such as artificial intelligence, standardized service, and big data, all of which don’t fit into the existing industry categorization.

We will accelerate the categorization of new industries, further refining the industry segmentation according to the industries’ development dynamics. The Strategic Key Products and Services Guideline, unveiled by the National Development and Reform Commission, and the Shanghai New Industries Categorization Guideline introduce the positive list of industries; while businesses are registered it’s referred to the negative list. At present, we think the positive list is more reasonable in terms of companies’ name checking, tax management, and statistical analysis. When the time’s right, we will consider the alternative.

Shanghai Radio: I have two questions. The first one is: Are there any similarities among the new industries that will be incorporated in the guideline? Is Shanghai the first to introduce such a system? The second question is: The guideline touches upon hi-tech industries, such as big data and artificial intelligence, when the guideline is launched, will they benefit?

Zhong Min: The time lag between reality and regulation is universal. It has happened in every province. Considering Shanghai’s leading role in promoting reforms, the conflict is more accentuated. As far as I know, a lot of effort has been put into loosening the criteria for incorporating new industries. Disagreements among departments are inevitable, some may consider a certain industry meets the criterion, others may not. It’s the first time that the Shanghai Municipal Government has introduced an official document to establish collaboration among six departments that have the closest links to the new industries. The collaboration is meant to be long-term, and dynamic. Shanghai has set a good example in the cause.

Shanghai’s administration for industry and commerce will be fair and square with the new industries as long as they are law-abiding and can help build a better economy.

Huang Ou: I would like to add that the most innovative companies are always those which directly face the market. The management of such companies prefers as little government involvement as possible but at the same time they can’t flourish without government oversight. For example, the Shanghai Municipal Commission of Economy and Informatization cannot support a company without knowing whether it’s qualified to be incorporated in the guideline.

Eastday.com: When the guideline is launched, can a company just go to the industrial and commercial administration to get a business license if it’s on the approved list?

Zhong Min: Once the guideline’s introduced it will be the official industries categorization reference. Not only can the related government department examine and approve new registrations, its industry categorization and code annotation, with the guideline, officials at the business registration office will know whether a new industry company can be registered or not.

Wenhui Daily: I would like to ask if the guideline would help promote Shanghai’s real economy; and could you give me a summary of the guideline’s highlights?

Huang Ou: Article 22 of the guideline put forward the management mechanism of business registration and describe the business scope of new industries and policy support. In the meantime, the Shanghai Municipal Commission of Economy and Informatization has introduced the Guideline for Promoting New Technologies, New Industries, New Operation, and New Business Mode to explore new registration mode such as loosening registration criteria, and more strict and transparent supervision during the business’s operation and improve the business’s statistical analysis.

Shanghai has been promoting China’s Innovation Driven Strategy, striving to develop new technologies, industries, and new business mode, such as driverless cars, artificial intelligence, 3D printing, and robots. Every traditional industry will boom when combined with internet. The economic value added by the new industries account for 30 percent of the city’s economy, the acceleration rate is much faster than the average economy growth rate. The contribution to the economy mainly comes from advanced manufacturing, financial service, information service, business service, and scientific research; manufacturing alone makes up for 36 percent of the industries.

Zhong Min: I would like to add two points. The first is the guideline was introduced in line with the companies’ actual needs and China’s real economy development. The second is the guideline strives to provide the most freedom to enterprises while catering to their needs.

STV: The technology transfer industry was incorporated in the guideline, what purpose do you think it serves?

Fu Guoqing: Technology transfer plays an important role in technology services and in accelerating the commercialization of scientific research. On May 14, President Xi Jinping put forward the belt and road initiative technological innovation scheme to have more cultural and technological exchanges, co-establish research laboratories, collaborate with other countries’ technological parks, and technology transfer, at the opening ceremony of the Belt and Road Forum for International Cooperation. The State Council issued the National Technology Transfer Construction Scheme on September 15. Shanghai just followed suit in the effort. The Shanghai Government introduced nine relevant policies and subsequently in May and June issued regulations and implementation plans to push forward technology transfer. Our goal is to develop technology transfer institutions as a major source to boost the economy.

The value of scientific and technological innovation transfer has reached 88.29 billion yuan (US$13.36 billion), with a 16 percent year-on-year increase. The introduction of the 22 guidelines has brought about some professional and multi-mode technology transfer institutes. Furthermore, Shanghai Jiao Tong University, Shanghai Fudan University, and Shanghai University have commercialized a lot of scientific research findings. Technology transfer helps advance research findings’ commercialization, but it has its limitations too, such as not having a big volume. So, I think the solution is to incorporate technology transfer in the guideline and provide better policies to manage the industry.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

Jiefang Daily (Shanghai Observer): The guideline specifies the collaboration mechanism of six government units. Such a mechanism will ensure the new industries are treated fairly, but how will you maintain efficiency at the same time?

Zhong Min: The collaboration mechanism is also meant for efficiency. Whenever a problem arises we will have a joint meeting to solve it. The guideline will have an overhaul every two years and we will tweak it every now and then to add new industries, all of which is meant to make the implementation more efficient and fair.

Xu Wei: Today’s conference has touched upon some technical problems. Is there anyone who would like to add something?

Zhong Min: I would like to add three reasons on why we haven’t introduced a negative list. The first is: under the current business registration system, the guideline could protect the investors by supervising the businesses they would like to invest in. The second is it confines companies’ business scope, so that other companies will know where to look when they need to find a right business partner. The third is it makes the government’s management more efficient, for we refer to business scope as one of the major references when we serve and manage the companies.

Under the current law, a definitive business scope categorization is still necessary. It fills in the blanks left when some of the new industries that sprouted up weren’t in the Standard Industrial Classification.