Promoting high-level institutional opening-up is a crucial mission entrusted to Shanghai by the nation
In recent years, the global economic landscape has been undergoing rapid restructuring, with a new wave of scientific and technological revolutions and industrial transformations accelerating. Alongside this, the transformation of international economic and trade rules has been progressing quickly. These rules have evolved from “border measures” to “behind-the-border measures,” with new regulations emerging in areas such as digitalization, sustainability, intellectual property protection, and more, profoundly influencing the global industrial structure and competitive landscape. As a result, traditional models of opening-up are now facing challenges.
The 20th National Congress of the Communist Party of China (CPC) emphasized the need for high-level opening-up, particularly in expanding institutional opening-up related to rules, regulations, management, and standards. The Third Plenary Session of the 20th CPC Central Committee reinforced this, highlighting that opening-up is a hallmark of Chinese modernization in the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization. The resolution stated that it is essential to build a new, higher-level open economy system and continue advancing institutional opening-up. As a “testbed” for China’s reform and opening-up, Shanghai’s initiative on high-level institutional opening-up plays a pivotal role in the nation’s participation in global governance. To fulfill the major mission assigned by the state, it is crucial for Shanghai to actively increase the intensity of stress testing, ensuring steady progress in promoting high-level institutional opening-up.
Institutional innovation setting a benchmark nationwide 
The State Council’s Overall Plan for Fully Aligning with International High-standard Economic and Trade Rules and Promoting High-level Institutional Opening-up of the China (Shanghai) Pilot Free Trade Zone has entrusted Shanghai with the prestigious mission of “building a national institutional opening-up demonstration zone.” Shanghai has proactively carried out the tasks outlined in the Overall Plan, continuously optimizing border measures while actively aligning with behind-the-border rules to steadily advance institutional opening-up. Currently, 76 out of the 80 pilot measures in the Overall Plan have been implemented, resulting in valuable experience across various areas. Several pioneering national demonstration cases have been introduced in multiple fields, contributing Shanghai’s expertise to expanding connections with high-level international standards on a broader and deeper scale, further driving institutional opening-up.
First, the city is further expanding the scope of opening up. As early as 2018, the China (Shanghai) Pilot Free Trade Zone introduced a negative list and implementation measures for cross-border trade in services, leading the way in institutional innovation in this area. Recently, the Implementation Plan for Shanghai to Promote High-Quality Development of Digital Trade and Service Trade was launched, actively fostering the integration of factor flow-based opening-up and institutional opening-up. This plan proposes a series of facilitation measures aimed at promoting the safe and efficient cross-border movement of innovative factors such as talent, capital, technology, and data. These include optimizing cross-border capital flow management and supporting cash-pooling business in the centralized management of cross-border funds for digital trade and service trade.
Second, the city is consistently enhancing the liberalization and facilitation of trade in goods. For example, efforts are being made to promote the application in Nangang of a pilot policy for enterprises to pick up and ship goods directly if they do not require certification or inspection. The city also supports the development of bonded high- and low-sulfur fuel oil blending businesses, and advances the construction of a trade facilitation system aligned with international practices. These initiatives aim to improve port customs clearance efficiency and reduce customs clearance costs.
Third, the city is taking the lead in implementing high-standard digital trade rules. Shanghai is developing a data factor market, creating the country’s first data transaction chain, and listing the nation’s first city-side data assets. The city is also establishing and improving a public data-sharing mechanism, expanding the scope of government data openness. It has formulated a negative list and operational guidelines for cross-border data flow in the China (Shanghai) Pilot Free Trade Zone. Additionally, the Lin-gang Special Area has launched the first national general data list for cross-border data scenarios and its supporting operational guidelines, while establishing a cross-border data service center in the area.
Fourth, the city is continuously advancing the reform of “behind-the-border” management systems. Shanghai is aligning “behind-the-border rules” with high-level international standards and regulations, driving reforms in areas such as government procurement, state-owned enterprise restructuring, and intellectual property protection. The city is also enhancing workers’ rights protection, fostering a fair, transparent, and predictable development environment to boost market vitality and social creativity.
Evolving from ‘Rule Follower’ to ‘Rule Setter’
Shanghai’s institutional opening-up has made significant progress, but to move forward, it must transition from being a “rule follower” to a “rule setter.” Going forward, Shanghai needs to deepen collaborative innovation across areas like the China (Shanghai) Pilot Free Trade Zone, the Lin-gang Special Area, and the Hongqiao International Central Business District, while strengthening the integrated opening-up mechanism within the Yangtze River Delta. Efforts should continue to align with international high-standard rules such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Digital Economy Partnership Agreement (DEPA), with a focus on behind-the-border rules including investment opening-up, service trade, digital trade, intellectual property protection, government procurement, and state-owned enterprises. 
Shanghai must aim to create notable examples of institutional innovation and rapidly refine and consolidate replicable experiences. The goal is to establish the model “Shanghai Experience” that can be widely promoted. In doing so, Shanghai will accelerate its position as a new benchmark for institutional opening-up in both China and the world, providing vital support for the country’s participation in high-standard economic and trade agreements and global economic governance.
The author is Wang Jia, an assistant researcher at the Institute of Economics, Shanghai Academy of Social Sciences