On the
morning of yesterday (August 21), the Information Office of the Shanghai
Municipality held a media briefing. Chen Jinshan, member of the Standing
Committee of the CPC Shanghai Municipal Committee, Secretary of the CPC Lingang
New Area Work Committee, and director of the Lingang New Area Administration,
introduced the achievements of Lingang New Area at its fourth anniversary and the
plan for the next phase. Ruan Qing, deputy director of the Shanghai Municipal
Development and Reform Commission, introduced the contents of “Several Opinions
on Supporting the Deepening and Expansion of Special Economic Functions in the
Lingang New Area of China (Shanghai) Pilot Free Trade Zone for Leading
High-quality Development.” Zhang Hongtao, deputy director of the Shanghai Municipal
Commission of Economy and Informatization, Shen Weihua, deputy director of the
Shanghai Municipal Commission of Commerce, Yang Zhenfeng, deputy director of
the Shanghai Municipal Education Commission, and Wang Xiaojie, deputy director
of the Shanghai Municipal Transportation Commission, attended the press
briefing and answered questions from reporters.

I.

As a
significant national strategy personally devised, executed, and championed by
General Secretary Xi Jinping, the Lingang New Area has consistently maintained
its unwavering commitment to fostering opening-up, implementing reforms, and
driving development momentum over the past four years. This unrelenting pursuit
has not only resulted in notable progress but has also ushered in a sense of acceleration
in its growth trajectory, characterized by a heightened level of visibility and
increased activity.

Over
this four-year period, the New Area has achieved remarkable economic
milestones. The GDP of the area has experienced an average annual growth rate
of 21.2%. The average total output value of industrial enterprises above
designated size has surged by 37.8% annually. The average total fixed-asset
investment across the entire society has risen by 39.9% annually. The average
total import and export value has soared by 44% on average annually. The
average tax revenue has increased by 16.2% annually. In the first half of this
year, the total output value of industrial enterprises above designated size
registered a 52% year-on-year growth, fixed-asset investment across society
witnessed an increase of 57.2% year on year, the total import and export value
surged by 54.6% year on year, and tax revenue surged by 47.5% year on year.
With the average growth rates of over 30% in these indicators in the past two
years, the Lingang New Area has solidified its role as a pivotal “growth pole”
and a driving “engine” for Shanghai’s economic development.

In
the past four years, particularly since the 20th National Congress of the
Communist Party of China, the New Area has dedicated itself to the deepening of
its special economic function zones and the development of the modern new city,
achieving remarkable success in these crucial endeavors.

1. High-level reform and opening-up has been
further deepened. Reform has consistently emerged as the most substantial
dividend reaped within the New Area, and opening-up has steadfastly remained
its paramount mission. Over the past four years, the New Area has compiled an
impressive track record, giving rise to a cumulative total of 102 notable
institutional innovations, including 48 instances that have led the nation. The
dynamism of the Yangshan Special Comprehensive Bonded Area has continued to
ascend, culminating in the successful approval of its third-phase expansion.
Another noteworthy example is the registration of a total of 47 international
voyage ships at the China Yangshan Port international ship registry hub.
Furthermore, the area achieved a milestone by initiating and normalizing
coastal piggyback operations with foreign-funded liners. The cumulative volume
of coastal piggyback containers reached 31,000 TEUs. Simultaneously,
significant headway has been made in expediting the construction of several
pivotal functional platforms. The international reinsurance business platform
was formally inaugurated, and the international oil and gas trading center
accomplished its inaugural LNG cross-border RMB settlement transaction. The
capabilities of the public service platform for supplies to bonded ships have
seen consistent enhancement, positioning it as a frontrunner in introducing
bonded LNG “ship-to-ship” bunkering services for international vessels. This
endeavor has resulted in a cumulative bunkering volume reaching 258,000 cubic
meters. In terms of enterprise dynamics, the acceleration of both “bringing in”
and “going out” initiatives led to a substantial increase in the New Area’s
proportion of actual foreign investment and outbound direct investment against
the city’s total from 2.6% and 10.2% in 2020 to 8.6% and 15% in 2022,
respectively.

2. High-quality economic growth momentum has
been further solidified. The New Area is rapidly advancing the establishment of
an industrial development paradigm characterized by technological innovation as
its inherent driving force, advanced manufacturing as a pivotal support, and
the modern service industry as a distinctive advantage. In the realm of
scientific and technological innovation, a constellation of high-caliber
laboratories, innovative technological platforms, specialized incubators, and
technological start-ups has been assembled. This concerted effort is aimed at
catalyzing the creation of a technological innovation system that spans the
spectrum from foundational research to applied innovation, culminating in the
nurturing of technological enterprises. In the sphere of cutting-edge
industries, notable strides have been taken to forge a “6+2” cutting-edge industry
ecosystem. The smart new energy vehicle industry had an annual output value
exceeding 230 billion yuan. The integrated circuit industry has crafted a
comprehensive ecosystem that spans the entire industrial chain, with key
projects at Wingtech and GalaxyCore already in production. The expedited
development of the Dishui Lake AI Innovation Hub has attracted several pivotal
enterprises, including CATL and ThunderSoft. Additionally, construction has
commenced on 12 key industrial projects, including the one with JCET. Furthermore,
the establishment of nine cutting-edge industry funds of funds has given rise
to an industrial fund system encompassing a substantial sum, totaling more than
352 billion yuan. Over the past four years, a substantial portfolio of over 500
cutting-edge industry projects has been inked, involving an investment of
approximately 563 billion yuan. In the domain of the modern service industry,
endeavors are being concentrated on cultivating emerging service sectors, such
as emerging finance, high-end shipping services, digital trade, and technology
trade. Notably, the New Area is poised to take a pioneering role in the
creation of a national service trade innovation and development demonstration
zone within Shanghai. Institutions such as the Shanghai University of Finance
and Economics Dishui Lake Advanced Finance Institute, as well as the Shanghai
Technology Exchange International Trading Center, have accelerated their
establishment. The high-level projects landed in the New Area included those
with DP World and HSBC Insurance Brokers.

3. High-quality urban functions have been
further enhanced. The New Area strives to prioritize the implementation of the
“People’s City” concept and construct an independent, comprehensive node-typed
coastal new city, centered around the needs and aspirations of its resident
talents. This approach aims to foster the simultaneous enhancement of the
city’s intangible attributes and physical infrastructure. A key initiative in
this regard is the comprehensive execution of the “Talent Nesting Project,”
bolstered by robust service provisions for talents to purchase or rent housing.
Over the past four years, this concerted effort has yielded impressive results,
with approximately 58,000 talented individuals drawn to the area, reflecting an
average annual growth rate of 128.5%. Concurrently, the New Area has focused on
aligning educational resources to meet the needs of children of these
professionals. This has led to the establishment and expansion of several
high-level educational institutions, including the senior high school division
of Shanghai High School East Campus and the Lingang Fengxian Campus of the No.2
High School of East China Normal University. In this timeframe, 19 basic
education schools have been inaugurated, with 35 new educational facilities
initiated and 16 successfully completed. Moreover, the New Area has attracted a
slew of top-level medical, commercial, and cultural tourism resources.
Construction progress has accelerated for the second phase of the Lingang
Campus of the Shanghai No.6 People’s Hospital, while the commencement of
construction for the Lingang Campus of Shanghai Pudong Hospital is imminent.
The visually captivating Duoyun Academy, celebrated for its unique ambiance
that blends bookish pursuits with a scenic backdrop, has evolved into a
renowned online attraction. Furthermore, the New Area remains committed to
enhancing its transportation network. The ongoing efforts include augmenting
the efficiency and capacity of Metro Line 16 and initiating the construction of
the Nanhui Branch Line.

Moving
forward, Lingang New Area will steadfastly uphold the “Five Importance”
principles, anchoring itself in Shanghai while embracing the global stage. The
goal is to play a bigger role and assume more responsibilities during the
city’s journey to construct the “Five Centers” and fortify the “Four
Functions.”

Firstly,
we will further elevate high-level opening-up. The central focus will revolve
around promoting institutional innovation and opening-up with a heightened
commitment to pilot initiatives, elevated levels of openness, and intensified
development promotion. In line with the State Council’s institutional
opening-up plan, Lingang will lead the way by conducting more stress tests in
domains such as cross-border data flow, offshore finance, intellectual property
protection, and fair competition. This proactive approach will provide valuable
practical experience for the nation as it seeks to join initiatives like Comprehensive
and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Digital
Economy Partnership Agreement (DEPA). Leveraging the unique functions of the
Yangshan Special Comprehensive Bonded Area, Lingang will deepen its cooperation
and exchanges with nations and regions such as Singapore, the United Kingdom,
and Dubai. This collaboration will amplify the innovation impact of the coastal
piggyback operations and China Yangshan Port ship registry hub, offering the area
an enhanced policy and institutional environment conducive to high-quality
development and advanced opening-up. Lingang will also intensify its opening-up
synergies and foster innovation collaborations with the leading Pudong area for
socialist modernization.

Secondly,
we will further nurture end-to-end technological innovation. A core emphasis
will be on actively supporting the “initial mile” of fundamental innovation
while ensuring the successful “last-mile” transformation of scientific and
technological accomplishments. Accelerated efforts will be dedicated to
building Lingang Laboratory and national key laboratories, augmenting the
effectiveness of the existing 16 key scientific and technological innovation platforms,
and expediting the agglomeration of high-caliber scientific research
institutions, innovation platforms, and incubators. Efforts will also be made
to build a world-class Dishui Science and Technology Station. The Lingang
Science and Technology Innovation Fund, endowed with a substantial
20-billion-yuan corpus, will be harnessed to invest in early-stage,
small-scale, and technology-focused enterprises. Efforts will be made to foster
the growth of specialized and sophisticated small and medium-sized enterprises,
thus enabling Lingang to continually enhance its capacity for enterprise
development.

Thirdly,
we will place a heightened emphasis on the establishment of an industrial
ecology that fosters the integrated development of the “industrial chain,
innovation chain, and service chain.” Our primary focus will be directed
towards bolstering the development of fundamental materials, software, and
components, thus enhancing and fortifying the industrial chain. Additionally,
we will set the stage for the construction of a cutting-edge clinical research
hospital that seamlessly collaborates with the biomedical industry. Furthermore,
we will expedite the implementation of pivotal projects like the Shanghai
Institute of Organic Chemistry of the Chinese Academy of Sciences and the PetroChina
Materials Research Institute. This will facilitate the continuous enhancement
of the capacity to apply and transform technological breakthroughs. We must
also give paramount attention to the creation of practical application
scenarios. This includes expediting the development of an autonomous driving
demonstration zone that integrates vehicles, roads, cloud infrastructure and network
facilities. In addition, we will vigorously champion the creation of hydrogen
energy and new energy storage application settings, while proactively exploring
the adoption of green methanol refueling for international maritime vessels. To
ensure a holistic approach, we will systematically plan and comprehensively
promote the coordinated growth of the productive service industry and advanced
manufacturing sector. Through these endeavors, we will establish a robust
industrial ecosystem that distinguishes Lingang as the most attractive
destination for investment.

Fourthly,
we will continue to drive innovation in the realm of trade in services. Our
central objective is to align with the OECD FDI regulatory restriction index
and the practices of benchmark countries, with a deep commitment to further
opening up the service trade sector and elevating its vitality. We must
strategically harness and optimize the capacities of key functions, such as
Cross-Border Connect, Shipping Connect, Legal Affairs Connect, as well as the
comprehensive service platforms facilitating enterprises in their global
expansion efforts. We will foster the establishment of a world-class
International Data Port and a high-standard international digital economy
industrial park, designed to bolster the seamless flow of cross-border data
with utmost security. These initiatives will significantly aid businesses in
both inbound and outbound endeavors. In addition, we will expedite the
development of an international financial asset trading platform and deepen our
commitment to the pilot programs of QFLP (Qualified Foreign Limited Partner)
and QDLP (Qualified Domestic Limited Partner). We will also vigorously promote
the growth of the robust shipping service industry, leveraging the newly
introduced shipping index futures to their full potential. Furthermore, our
support for the establishment of the Shanghai Technology Exchange International
Board is crucial, as it will lay the foundation for a global cross-border
technology trade center. Through these comprehensive efforts, we aim to unlock
the vast potential of high-level service trade development, demonstrating the
outstanding capabilities of Lingang as a beacon of open and progressive
development.

Fifthly,
we will place a stronger emphasis on enhancing urban functions. This involves
ensuring the provision of high-quality education, improving external
transportation networks, enriching cultural and sports amenities, and nurturing
a heightened sense of pride and contentment among the residents of Lingang.
Within this year, we have ambitious plans, including the opening of three
schools, among them the senior high school division of Shanghai High School
East Campus. Moreover, we will complete the construction of 13 schools and
initiate the construction of another 13. We will expedite the groundwork for
establishing a top-tier institution in the form of the Shanghai Dishui Lake
School. This new school will embody fresh concepts, pioneering mechanisms, and
distinctive features, setting the bar for educational excellence. Our
commitment extends to accelerating the development of the Nanfeng Line of the
Urban Railway within the current year. Concurrently, we will intensify our
research efforts concerning the planning of Situan Junction Station and Metro
Line 27. We anticipate the completion of the Ice and Snow World, the largest
indoor ski resort in Asia, this year, with commercial operations commencing
next year. Additionally, plans are in motion for the initiation of construction
on the urban comprehensive gymnasium within the year. Lingang is not only a
city with a youthful spirit but also a city designed for the youth.

In
adherence to the “Five Importance” principles, Lingang New Area remains
committed to innovation, concrete actions, and expeditious progress. We aim to
promote the high-level and international development of this dynamic region,
showcasing its unique economic functions, and striving to craft a new chapter
in Shanghai’s development in this new era.

II.

This
year marks the 10th anniversary of the China (Shanghai) Pilot Free Trade Zone
and the fourth anniversary of the Lingang New Area. At this juncture, the CPC
Shanghai Municipal Committee and the Shanghai Municipal Government are poised
to introduce a fresh set of support policies, catalyzing the continued
deepening and expansion of the unique economic functions of the Lingang New
Area, propelling it to the forefront of high-quality development.

Since
the inception of the Lingang New Area, Shanghai has issued municipal policy
documents for four successive years, rallying the entire city behind the cause
of building and nurturing this innovative area. This year, a new set of support
policies has been crafted with the primary objective of addressing the
challenges and bottlenecks faced during the development of the Lingang New
Area. It aims to provide the Lingang New Area with increased resources and
greater autonomy in reform, nurturing its evolution into a dynamic “growth
pole” and a driving “engine” behind the city’s development.

The
new round of support policies is centered on three key concepts: “special,” “economic,”
and “function.” First and foremost, there is a focus on the “special”
positioning of the Lingang New Area, accentuating its freedom in five aspects
and convenience on one front. The policies aim to support the Lingang New Area
in conducting thorough stress tests and providing a series of pioneering,
high-value support policies within its local jurisdiction. Secondly, the
emphasis is on “economic” development, with a keen eye on sectors such as
low-carbon and green energy and open service trade. This approach will lead to
the proposal of tailored and pioneering institutional innovations and
supportive measures that align with the specific needs of enterprise
development. This, in turn, will accelerate the clustering and growth of
cutting-edge industry enterprises within the Lingang New Area. Lastly, the
policies zero in on “function” creation, emphasizing the development of an
independent and comprehensive coastal city for the Lingang New Area. In this
regard, a slew of supportive policies will be introduced, covering areas such
as rapid external transportation systems, high-quality educational resources,
healthcare services, talent attraction, and training initiatives. The
overarching aim is to comprehensively enhance the urban service capabilities of
the Lingang New Area.

The
new round of support policies encompasses 29 tasks and measures across six key
areas.

The
first aspect centers on enhancing the unique functional positioning of the
Lingang New Area. It primarily comprises three key supporting measures. Firstly,
the commitment to provide ongoing differentiated policy support for the Lingang
New Area remains steadfast. Secondly, an innovative dynamic adjustment
mechanism for the centralized exercise of powers will be established. Lastly,
the Lingang New Area will be encouraged to draw inspiration from the management
practices of special economic zones. For example, building upon the existing
municipal and district-level economic management authority vested in the Lingang
New Area Administration, this will entail further delegation of authority in
realms such as industrial advancement, urban development, talent acquisition,
and comprehensive law enforcement.

The
second aspect centers on fostering an attractive environment for talent
development. This facet revolves around six measures aimed at optimizing
conditions for talent growth. This includes refining the policy framework for
the direct settlement of recent graduates from universities and colleges,
expanding the scope of key industries to be entitled to support in terms of talent
attraction and settlement, augmenting training programs for technical and
skilled personnel, implementing a more open and flexible incentive system,
advancing the talent housing project, and further enhancing the residential
infrastructure in the Lingang New Area. As an illustration, there will be
support for the development and construction of high-quality talent residences
with shared property rights through renovation, supplementary construction, and
new development initiatives.

The
third aspect centers on enhancing support in terms of fiscal funding and land. This
dimension primarily encompasses three key supporting measures, including a
commitment to reinforce financial support for the Lingang New Area’s
development, a concerted effort to enhance overall land quota allocation
mechanism and efforts to encourage land conservation, intensive utilization and
mixed-use practices. For instance, this includes continued support for
retaining local income generated within the industry-city integration area of
the Lingang New Area. Simultaneously, it involves optimizing and refining the
fund settlement mechanism, with the Administration independently formulating
fund management protocols and overseeing its use.

The
fourth aspect centers on advancing the agglomeration and growth of technological
frontier industries. This aspect revolves around three key supporting measures,
such as granting additional authority to Lingang New Area Administration to
recommend district-level initiatives for technological innovation and
development, fostering the innovative application of intelligent connected
vehicles, and providing support for the establishment of a high-quality,
low-carbon green data center in the Lingang New Area. For instance, we will grant
district-level recommendation rights to the Lingang New Area for the evaluation
of city-level small technological giants and academician workstations. Additionally,
support will be directed towards constructing a relevant evaluation system for
the scientific and technological innovation and development in the Lingang New
Area. Furthermore, for data centers demonstrating high-level benefits and output,
municipal-level energy consumption will be extended within certain limits.

The
fifth aspect centers on promoting innovative advancements in terms of trade in
services. This facet primarily entails six strategic measures, such as accelerating
the construction of an international data port within the Lingang New Area, supporting
the Lingang New Area in establishing a cross-border asset management
demonstration zone, encouraging the establishment of foreign investment companies
within the Lingang New Area, elevating the quality and capabilities of high-end
shipping services, supporting innovation and growth in offshore trade practices,
and improving technology trade through enhanced trading systems. For instance,
this involves the exploration and development of systems and standards for data
resource transactions, cross-border data transmission, and security protocols.
Furthermore, pioneering initiatives on compliant and convenient cross-border
data will be undertaken in the Lingang New Area, in the realms of intelligent connected
vehicles and Internet of Vehicles, as well as cross-border financial services.

The
sixth aspect centers on enhancing urban service functions. This dimension
includes eight supporting measures, such as supporting the high-quality
development of education within the Lingang New Area, piloting the opening-up
of high-level education, further reinforcing the allocation of medical
resources, supporting the Lingang New Area in pioneering the pilot project
where architects shoulder responsibilities, backing efforts to establish a
low-carbon city within the Lingang New Area, accelerating enhancements in
external rapid transportation systems, optimizing differentiated charging
policies for primary external access routes, and entrusting the Lingang New
Area Administration with the authority to approve the use of sea areas. For
instance, this includes support for the construction of high-level basic
education schools, which adopt innovative teaching models, within the Lingang
New Area. Additionally, it involves promoting Sino-foreign university of applied
science and high-quality private kindergartens to cater to the diverse and
personalized educational needs of various talents. Furthermore, support will be
provided to the Lingang New Area in piloting the notification and commitment
system for planning and licensing requirements for projects where architects
shoulder responsibilities, while gradually phasing out reviews of construction
drawings.

In
the next phase, Shanghai will prioritize the advancement of reform and
innovation within the Lingang New Area as a key component of the city’s reform
efforts. We are committed to efficiently implementing policies, conducting
dynamic assessments of policy progress, and continually enhancing their
effectiveness, in a bid to propel the Lingang New Area towards a new echelon of
high-quality development.