新闻 - J & K Investment Consulting

The Shanghai Municipal Commission of Commerce, in collaboration with three other government departments, has released a comprehensive plan aimed at further optimizing the environment for foreign investment.

The document, titled the “Implementation Plan to Further Optimize the Environment for Foreign Investment and Enhance Efforts to Attract Foreign Investment,” took effect on July 11, 2024, and outlines 15 key measures.

The three other collaborating departments are the Shanghai Municipal Development and Reform Commission, the Shanghai Municipal Commission of Economy and Informatization, and the Shanghai Municipal Commission of Science and Technology.

Highlights of the document include:

1. Increase support for foreign R&D centers

Implement Shanghai's enhancement plan for foreign-funded research and development centers (View graphic of the plan) to attract foreign R&D centers to Shanghai and enhance the capabilities of existing ones. Eligible global R&D centers can enjoy relevant subsidies in accordance with laws and regulations.

Support eligible foreign R&D centers in applying for Shanghai’s locally-funded science and technology programs.

Encourage foreign R&D institutions to collaborate with local universities, research institutions, and enterprises in innovation projects, providing funding support for eligible projects.

Support the establishment of open innovation platforms and high-quality incubators by foreign-invested enterprises in Shanghai, facilitating deep cooperation with professional service agencies to accelerate the commercialization of technological achievements and the cultivation of innovative enterprises.

2. Expand opening-Expand opening-up of the service sector

Seek pilot measures to expand opening-up in key areas, such as financial services, biopharmaceuticals, and fashion.

Under the premise of compliance with relevant laws and regulations, accelerate the implementation of foreign investment projects in the biopharmaceutical sector, and encourage foreign-funded enterprises to conduct clinical trials on overseas-listed cell and gene therapy drugs in Shanghai. In the China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ), select eligible foreign-funded enterprises to pilot the development and application of gene diagnosis and treatment technologies.

Accelerate pilot projects to expand the opening-up of value-added telecom services.

3. Expand channels for attracting foreign investment

Encourage eligible foreign investors to establish investment companies and regional headquarters in Shanghai. Companies established by these investment companies can enjoy the treatment of foreign-funded enterprises in accordance with national regulations, and new investments by regional headquarters of multinational companies can enjoy support policies in accordance with relevant regulations.

Encourage eligible foreign investors to establish equity investment funds, and create a fast-track process for eligible equity investment fund managers to establish these funds.

4. Improve mechanisms for advancing foreign investment projects

Enhance the mechanisms to promote the early signing, early commencement, and early production of foreign investment projects.

Support foreign-funded enterprises in participating in green certificate transactions and green electricity trading.

Support foreign-funded enterprises in participating in the national plan for large-scale equipment renewals.

5. Explore mechanisms for cross-border data flow

Guide foreign-funded enterprises in conducting security assessments on outbound data and filing for record of standard contracts for outbound personal information.

Implement pilot projects for security pre-assessments of outbound data.

Utilize the cross-border data service center in Lin-gang Special Area to provide consulting services and preliminary reviews of materials related to cross-border data flow.

Formulate regulations for cross-border data flow in the Shanghai FTZ, exploring the development of "negative lists" and guidelines for cross-border data flows in various scenarios, such as biopharmaceuticals, intelligent connected vehicles, shipping, retail, finance, and technology export.

6. Enhance convenience for foreigners to live in Shanghai

Upgrade the International Services Shanghai portal (english.shanghai.gov.cn) to provide policy information, news services, and living guides for foreign employees of foreign-invested enterprises in Shanghai.

Encourage foreigners working in foreign-invested enterprises to apply for the Fast Pass on Foreign Talents Remuneration Foreign Exchange[c1] , which allows multiple transactions and cross-bank services without document review, provided by banks in Shanghai.

Implement measures to facilitate the entry of foreign personnel to China, providing convenience for those urgently applying for port visas to come to Shanghai for business cooperation, visits, exchanges, and investment.

Provide convenience for eligible foreign senior management and technical personnel hired and recommended by foreign-invested enterprises to apply for permanent residence.

Promote the application of the Five-Star Card, the new version of the permanent resident card, in more convenient scenarios.

7. Optimize inspections for foreign-invested enterprises

Categorize enterprises according to their levels of risk and credit. For enterprises with low risk and good credit, further reduce the proportion and frequency of random inspections.

Explore new models, such as "comprehensive one-time inspection," in which multiple departments jointly conduct different administrative inspections on the same regulatory object simultaneously.

Deepen inclusive and prudent regulations according to the scope of matters not subject to administrative penalties and the standards for mitigating administrative penalties.

8. Guarantee national treatment for foreign-invested enterprises

Safeguard the rights of foreign-invested enterprises to participate in government procurement activities in Shanghai. Implement the collaborative government procurement for innovative products. Measures such as subscription and first purchase will be adopted to support foreign-invested enterprises in the city in innovating and developing globally leading products. This cooperative procurement involves the government working together with suppliers, sharing the risks of research and development, and purchasing the successfully developed innovative products as agreed in R&D contracts.

Utilize the Shanghai Foreign-Funded Enterprises Standardization Collaboration Platform to provide foreign enterprises with one-stop services, such as information inquiry on standards, policy promotion, and public training.

Encourage foreign-invested enterprises to independently or jointly with other enterprises develop standards.

Encourage foreign-invested enterprises to participate in national and municipal pilot projects on service industry standardization and in activities related to standardization awards.

Include eligible representatives of foreign-invested enterprises in the pool of experts for technical review on standardization.

9. Improve mechanism for protecting rights and interests of foreign enterprises

Support the development of arbitration institutions and commercial mediation organizations registered in Shanghai, as well as the Shanghai outlets of overseas arbitration and mediation organizations. Support them in providing foreign-related arbitration and mediation services.

Utilize the Shanghai International Dispute Resolution Center to meet the needs of foreign-invested enterprises for diverse and convenient dispute resolution services.

Utilize the Shanghai Court’s One-Stop International Commercial Dispute Resolution Platform to fairly and efficiently handle conflicts and disputes in the foreign investment field.

Establish a dedicated section called Complaint & Consultation about Foreign Investment on the Invest Shanghai platform (www.investsh.org.cn) to track and resolve problems raised by foreign-invested enterprises.

If an entrepreneur would like to come to China to set up a company, which visa should they apply for?

If a foreigner wants to set up a business or open a company here, of course, it's welcome. They can apply for an F visa or M visa (business visa), or a visa for personal affairs, through the Chinese embassy or consulate. When they arrive in China, we will check the documents provided – for example, if they want to set up a business, they will need to get a business license and show this kind of evidence. We may then give them a six-month visa or even a one-year residence permit, depending on the documents provided.

If you're still in the process of starting a company when you arrive, you can apply for an extension of the original business visa. When you're finished setting up the company, normally you'll then obtain a work permit, and if you've got a work permit, usually we will issue a residence permit for one year.

What are the requirements to apply for a start-up visa or business visa?

If you are already in China and want to change your status, you can provide proof that you're opening a company, and we may change the type of visa relatively – for instance, issue a business visa for several months. If you already have a work permit we will issue a residence permit, providing that the business is legitimate.

Are there ways to change the status of your visa?

Yes! For example, if you're in China for a short stay with a business visa, but later want to open a company, we may change the status. Or, if you were a student and now you have a work permit, we can also change it. It all depends on the situation. We will issue a residence permit based on whether you're qualified and all documents are correct.

We welcome foreigners to study, work, visit or tour in China. If you can provide the relevant documents, we will issue the relevant visa or residence permit. The door is open always, but you need to provide some evidence of your reasons for being here.

If someone needs to apply for a residence permit, but they urgently need their passport to travel, what do they do?

There are a few ways to solve this issue. If you need to travel urgently, you can provide a plane ticket to prove it's urgent, and we will rush the application through. Normally it takes seven working days to issue a visa or residence permit, but in this case, we may rush to issue it in two to three days.

If you want to travel to the Chinese mainland, you can use the application receipt, which can still be used as temporary proof of stay in China, even though we have your passport.

The third way is that if necessary, you can apply to take back your passport during the application period – we will give back your passport, and after seven working days, you can come back and we will add the visa or residence permit to the passport.

When foreigners need to update their address and personal information, where do they go? And if they move, do they have to change their information?

Foreigners who are not staying in a hotel and want to register their address can go to the local police station, or register directly through the website. If you already have a residence permit and need to change your address, you can do it directly through the website.

If you move, you need to update your information – it is required by law. If you're in a hotel, they will do it for you; if you have your own apartment or are staying with a friend, you need to do it yourself.

I have a few questions about the 144-hour visa-free transit policy:

I hold a British passport and plan to fly from London to Hong Kong, then from Hong Kong to Shanghai and afterwards travel in Shanghai for four days, flying back to London. I would like to know:

Does flying from Hong Kong to Shanghai to London comply with the 144-hour visa-free transit policy requirements?
What is a "through ticket"? Does it require both segments to be with the same airline?
Must the airport of arrival in Shanghai be the same as the airport of departure from Shanghai?

Based on your plans, here's how the 144-hour visa-free transit policy applies to you:

If you hold a British passport and have pre-booked flights from Hong Kong to Shanghai and from Shanghai to London four days later, you qualify for the 144-hour visa-free transit in the Jiangsu-Zhejiang-Shanghai area.
Purchasing separate tickets in advance for the Hong Kong to Shanghai and Shanghai to London segments is acceptable. The immigration authorities do not require both segments to be with the same airline.
You can enter or exit through either Shanghai Hongqiao Airport or Shanghai Pudong Airport. For example, you can fly from Hong Kong to Shanghai Hongqiao Airport and depart from Shanghai Pudong Airport to London and still comply with the policy.

Important notes:

Ensure your passport is valid for at least three more months.
If your passport has a Chinese visa rejection stamp, or if you have records of illegal entry, residence, or employment in China within the past five years, you will not be issued a temporary entry permit and cannot use the 144-hour visa-free transit.

(Source: Shanghai General Station of Immigration Inspection)

My daughter and I are Finnish citizens traveling to Shanghai from London on Oct 25 and staying until Oct 30.

Then, we'll go to Japan for five days and transit back through Shanghai to London, staying less than 24 hours.

Can we use the 144-hour visa-free transit in Shanghai for our initial stay and the 24-hour visa-free transit on our return from Japan? Or should we get a double-entry visa before our trip?

My husband, an Irish citizen, can stay in China visa-free for up to 15 days. Does he need to do anything else?

Lastly, we have Turkish stamps in our passports from a recent trip. Will they cause any issues for visa-free entry?

Based on your letter, if you have a valid Finnish passport and have pre-booked direct flights from London to Shanghai and then from Shanghai to Japan six days later, you can apply for a 144-hour visa-free transit in the Jiangsu-Zhejiang-Shanghai area with the border inspection authorities.

With regards to you and your daughter, given that you both hold valid Finnish travel documents and have confirmed connecting flights from Japan to Shanghai and then to London within 24 hours, you have two options:

If you don't need to leave the airport's restricted area, you can transit directly without going through immigration.
If you wish to exit the restricted area, you can apply for a 24-hour visa-free transit at the immigration desk. After a successful border check, you'll be granted temporary entry.

With regards to your husband:

As an Irish passport holder, your husband may be eligible for a 15-day visa-free stay if:

His visit purpose aligns with current policy
He can provide supporting documents for his entry purpose
He receives approval from border inspection authorities

Regarding your question about the Turkish visa, the impact of a Turkish visa on visa-free entry will be determined by the border inspection authorities at the time of entry.

(Source: Shanghai General Station of Immigration Inspection)

As I have reached retirement age and will be leaving China, how can I withdraw my social security contributions (pension, medical)?

Under Article 5 of the Interim Measures for Social Insurance System Coverage of Foreigners Working within the Territory of China:

Foreigners covered by the social insurance system shall be entitled to social insurance benefits in accordance with the law, once the qualifying conditions are met.

For those who leave the country before reaching the stipulated pension age, their individual social insurance accounts will be retained. If they return to China for employment, their contribution years will be accumulated. Alternatively, upon a written application to terminate the social insurance relationship, the balance in their individual social insurance account can be paid out to them in a lump sum.

Individuals can go to the nearest community affairs service center for processing.

According to the relevant regulations on the basic medical insurance for employees, employees who terminate their pension insurance – due to a one-time pension payment, death, or emigration and the cancellation of their basic pension insurance account – can bring documents to the nearest district medical insurance center to settle their personal medical account funds.

Before settling the personal account funds, any unpaid or unreimbursed medical expenses for outpatient, emergency, hospitalization, or home care must first be settled, reimbursed, or reduced.

If the settlement amount exceeds 10,000 yuan ($1,378), an appointment is required and the settlement can be processed within 10 working days after making the appointment.

(Sources: Shanghai Municipal Bureau of Human Resources and Social Security, Shanghai Municipal Medical Insurance Bureau)

I have been living and working in Shanghai for three years and am enrolled in the social security system, including the Housing Provident Fund. Is there a way I can check the amount I have accumulated?

Foreign employees need to bring their insurance documents to the nearest district social security center, in order to check their pension insurance payment status.

Applicants who are not citizens of the Chinese mainland can inquire about the details of their accounts for the past three years at the business outlets of the Shanghai Provident Fund Management Center or those of the China Construction Bank's housing provident fund, with any of the following valid identification – passport, residence permit, exit and entry permit, or other valid ID, according to the fund management center.

(Sources: Shanghai Municipal Bureau of Human Resources and Social Security, Shanghai Provident Fund Management Center)

I have been accepted into a university in Shanghai and will start my studies in September. Once I receive the JW202/201 Form and the admission letter from the university, can I apply directly for a new residence permit?

You can apply for a residence permit for foreign students in Shanghai with the following documents: the application forms and admission notice from the university, the Confirmation Form for Study in China (JW202/201 Form) and other relevant documents, according to the Shanghai Municipal Bureau of Public Security.

(Source: Shanghai Municipal Bureau of Public Security)

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Starting July 10, non-Chinese permanent residents of HK and Macau will be eligible to apply for special travel permits to enter the mainland, according to the National Immigration Administration.

According to the basic laws of the two regions, permanent residents of Hong Kong and Macau include both Chinese and non-Chinese nationals.

Holders of these documents will be allowed multiple entries into the mainland within a five-year validity period, with each stay not exceeding 90 days. After completing procedures such as fingerprint collection, the holders can enter through the express clearance channel, according to the administration.

However, if non-Chinese holders intend to work, study, or engage in news reporting activities on the mainland, they should apply for visas or residence permits in accordance with the law.

The administration said that it will continue to improve immigration management services to support the development of the Guangdong-Hong Kong-Macau Greater Bay Area, and promote the integration of Hong Kong and Macau into the country's overall development.

Q: Can the Permit holders work in the mainland?

A: No. The Permit is issued for Non-Chinese traveling for short-term purposes such as investment, visiting relatives, tourism, business, seminars. The holder shall not work, study, or engage in news reporting activities with the Permit.

Q：Where should the applicants go for applications?

A: The applicants should go to the China Travel Service (Holdings) Hong Kong Limited or Hong Kong and China Travel Service (Macao) Ltd. for the first application. For the Permit's renewal, replacement or identity information change, they can also submit applications to the Immigration Bureau in the mainland.

Q: What is the validity period of the Permit? And the duration of stay?

A: The Permit is valid for 5 years with multiple entries, and the duration of stay is 90 days for each entry.

Q: How long is the processing time of the Permit?

A: The processing time limit for acceptance, approval and issuance of the Permit is 20 working days.

Q: Can the Permit holders use the fast channel for frontier inspection and customs clearance when entering and exiting China?

A: Yes, the Permit holders can go through customs clearance through fast channels after completing fingerprint collection procedures at ports. In addition, they are not required to fill in the Arrival Card when entering China with the Permit.

Q: Is residence registration still required after each entry with the Permit?

A: Yes, during their stay in China, the Permit holders shall register for accommodation in accordance with laws.

China recently announceda slew of new measures to atract and better use foreign investment.

Expand market access

Reasonably shorten negative list for foreign investment, remove all restrictions in foreign investment in manufacturing and expandopening-up in telecommunications andhealthcare

Launch pilot programs to relax foreign entry thresholdsin scientific and technological innovation

Allow free trade zones such asBeijing, Shanghai and Guangdong to choose eligibleforeign enterprises to expand pilot projects in gene diagnosis and treatment technology development and application.

Support opening-up measuresin areas such as informationservices (limited to app stores) to be implemented in pilot free trade zones.

Expand access of foreign financial institutions to banking and insurance sectors

Expand business scope of foreign financial institutions in domestic bond market

Conduct pilot investment programs for qualified foreign limited partners in China

Enhance appeal for foreign investment

Expand catalog of industries for encouraging foreign investment and list of key foreign-funded projects

In revising national catalog, focus on encouraging foreign investment in manufacturing, promote integrated development of service and manufacturing sectors, and increase support for advanced manufacturing, modern services, high-tech, energy conservation and environmental protection.

In revising central and western regions' catalog,enhance support for basic manufacturing, applicable technologies, and consumption related topeople's livelihood.

Waive tariffs for imported self-use equipment for foreign enterprises reinvesting in projects within China that meet conditions specified in catalog of industries for encouraging foreign investment

Implement preferential tax policies for foreign investors in China's bond market.

Encourage financial institutions to provide quality services and financing support for eligible foreign-invested projects according to market principles

Support eligible foreign enterprises to issue RMB bonds and use them for investment in China

Promote implementation of policies to facilitate cross-border trade and

investment foreign exchange management.

Guarantee energy use for foreign enterprises

Optimize fair compefitionenvironment

Clean up behaviors and policies violating fair competition

Remove unreasonable restrictions hampering enterprises of all types of ownerships from participating in tenders and bidding on anequal basis

Support foreign enterprises totake part in formulation andrevision of standardsaccording to law

Continue to promote 'Invest in China'

Better serve foreign enterprises

Make good use of platforms such as foreign enterprise roundtables to deepen regular exchanges with foreign enterprises, foreign chambers of commerce and international organizations and respond to concerns.

Improve inter-departmental coordination mechanism for handling complaints from foreign enterprises at all levels, ease communication channels, and promptly learn and address issues and legitimate claims raised by foreign enterprises.

Facilitate flow ofinnovation factors

Support foreign enterprises' data flow with their global headquarters

Facilitate international business personnel exchanges

Extend visa period to two years for management and technological staff of foreign enterprises and their accompanying spouses and underage children.

Speed up renewal of more international flights in aviation hubs such as Bejing, Shanghai, and Guangzhou.

Streamline application process for foreigners' work permits and work-related residence permits

Foreigners working in China who have obtained work-related residence permits of more than one year, at least twice consecutively, foreign management and professional technical personnel working for well-known enterprises and research institutions, as well asmembers of scientific research and innovation teams, may apply for up to 5-year residence permits through exit and entry administrations of public security organs. Those who meet the requirements may be approved for permanent residence in China.

Allow foreign management and professional technical personnel working in China to relocate to other regions within their respective enterprises or institutions, or to pursue degrees or continue their education at domestic universities without reapplying for residence permits.

Support innovative cooperation between domestic and foreign institutions

Support foreign enterprises, foreign R&D institutions and transnational companies set up in China to equally participate in key national R&D programs and major national science and technology projects.

Align domestic rules with high-standard international economic and trade rules