Shanghai Weekly Bulletin
lssue 3,August 2023
Shanghai Weekly Bulletin is an information service presented by the Foreign Affairs Office of Shanghai Municipal People’s Government in collaboration with Wolters Kluwer to foreign-funded enterprises, foreign-related institutions as well as people from overseas living in Shanghai. Covering major national and Shanghai foreign-related news, event information, policy Q&A and interpretations in the past week, it keeps you up-to-date with the latest foreign-related policies and developments in Shanghai.
Laws and Regulations
【National】
1. China Issues Guidelines to Further Optimize Environment for Foreign Investment
【Keyword: Foreign Investment】
The State Council recently released the Guidelines on Further Optimizing Business Environment and Attracting More Foreign Investment. The document specifies 24 policy measures in six aspects, including improving the quality of foreign investment utilization, ensuring national treatment for foreign enterprises, strengthening the protection of foreign investment, improving investment and business facilitation, increasing fiscal and tax support, and refining foreign investment promotion methods.
Source: website of the Chinese Government
2. CAC Issues Rules to Regulate Handling of Corporate Complaints of Online Infringement
【Keywords: Online Infringement; Complaints】
The Cyberspace Administration of China (CAC) released on August 10, 2023 the Work Rules for Website Platforms to Accept and Handle Corporate Complaints of Online Infringement. With 29 clauses, the Rules aim to better protect the legitimate rights and interests of enterprises and entrepreneurs, and establish a long-term mechanism for optimizing business environment in cyberspace.
Source: CAC
http://www.cac.gov.cn/2023-08/10/c_1693319212099907.htm
3. MIIT Initiates Filing Process for Mobile Internet Apps
【Keyword: App Filing】
The Ministry of Industry and Information Technology (MIIT) released on August 4, 2023 the Circular on Carrying out Filing of Mobile Internet Application Programs, which outlines the organization of the filing process for mobile internet application (App) programs. It stipulates that app operators engaged in Internet information services within the territory of the People's Republic of China must complete the filing procedures. Those who fail to do so are not allowed to provide related services.
Source: MIIT
https://www.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2023/art_920db564162e4312916a01bed6540ad8.html4. China Releases New Rules on Independent Directors of Listed Companies
【Keywords: Listed Companies; Independent Directors】
The Measures for the Management of Independent Directors of Listed Companies were reviewed and passed at the 5th session of the China Securities Regulatory Commission (CSRC) on July 28, 2023. The rules will come into effect on September 4, 2023. With six chapters and 48 articles, it clarifies the qualifications, appointment and dismissal procedures, responsibilities and means of duty performance, and guarantee for duty performance of independent directors. Besides, a one-year transitional period is established for resolving matters such as the mechanism of special meetings for independent directors, the independence of independent directors, qualification requirements, and term limits.
Source: CSRC
http://www.csrc.gov.cn/csrc/c101953/c7424110/content.shtml【Shanghai】
1. Shanghai Unveils Measures to Stabilize Foreign Trade Volume and Improve Quality
【Keyword: Foreign Trade】
Shanghai Municipal Commission of Commerce and China Export & Credit Insurance Corporation Shanghai Branch issued a circular on August 3, 2023 to release the Service Measures for Stabilizing Foreign Trade Volume and Improving Quality of Foreign Trade in Shanghai. The measures are introduced to make good use of policy-oriented export credit insurance to support Shanghai’s efforts in stabilizing export volume, optimizing export mix, promoting innovation, and boosting confidence.
Source: Shanghai Municipal Commission of Commerce
https://sww.sh.gov.cn/zwgkgfqtzcwj/20230804/d7e81d019f334d659a4f2ecd0dc89f4e.html
2. Shanghai Moves to Promote Commercialization of Scientific and Technological Achievements
【Keyword: Scientific and Technological Achievements】
Seven departments including the Science and Technology Commission of Shanghai Municipality recently issued a circular to publish the Pilot Innovation and Reform Plan of Shanghai Municipality for the Commercialization of Scientific and Technological Achievements, which specifies that the pilot innovation and reform will focus on three aspects including the reform of the intellectual property rights system for scientific and technological achievements, the management and operation of scientific and technological achievements, and compliance safeguards for the commercialization process.
Source: Shanghai Municipal People’s Government
https://www.shanghai.gov.cn/nw12344/20230809/bdb36f5ba78145d1a72c7ad20870bebf.html3. Shanghai Releases Pilot Plan for Imports of Goods for Biomedical R&D
【Keyword: Biomedical】
Shanghai Municipal Commission of Commerce, Shanghai Customs, Shanghai Municipal Medical Products Administration and other two departments recently issued a circular to publish the Pilot Plan of Shanghai Municipality for the Imports of Goods Used for the R&D of Biomedicines, which mandates the establishment of a “White List" system for the imports of R&D goods by biomedical companies (research institutions), and requires efforts to enhance information-based supervision and streamline import procedures.
Source: Shanghai Municipal Commission of Commerce
https://sww.sh.gov.cn/zwgkhsgwj/20230807/3fb0a6e3ca6d437eacbd96ae118021cb.html
4. Shanghai Consults Public on the Measures for Enhanced IP Appraisals
【Keyword: Intellectual Property】
Shanghai Intellectual Property Administration issued a circular on August 2, 2023 to solicit public opinions on the Implementation Measures of Shanghai Municipality for Strengthening the Intellectual Property Appraisals (Draft). The deadline for feedback is 30 days after the date of the circular. The draft consists of 15 articles across three areas, with a clear focus on establishing a work mechanism for intellectual property (IP) appraisals.
Source: Shanghai Intellectual Property Administration
https://sipa.sh.gov.cn/tzgg/20230802/35a6facbc134493e82ee88d23746f3ac.html5. Shanghai Issues Rules to Promote Connection between Pharmaceutical Administrative Law Enforcement and Criminal Justice
【Keywords: Pharmaceuticals; Administrative Law Enforcement; Criminal Justice】
Shanghai Municipal Medical Products Administration, Shanghai Municipal Administration for Market Regulation, Shanghai High People's Court and other two departments recently issued a joint circular to publish the Implementation Rules of Shanghai Municipality for Connection between Pharmaceutical Administrative Law Enforcement and Criminal Justice, in an effort to further improve the work mechanism for connection between pharmaceutical administrative law enforcement and criminal justice in Shanghai, step up efforts in the crackdown on illegal and criminal activities in the pharmaceutical sector, and effectively safeguard people’s health and safety. The Rules will take effect on September 1, 2023.
Source: Shanghai Municipal People’s Government
https://www.shanghai.gov.cn/gwk/search/content/38d972e711414d718589bf20166c81b36. Shanghai Issues Work Plan to Support Innovation-driven Development of the Biomedical Industry
【Keyword: Biomedical Industry】
Shanghai Municipal Medical Products Administration recently issued a circular to release the Work Plan of Shanghai Municipality for Supporting the Innovation-driven Development of the Biomedical Industry. The Plan encompasses measures in four aspects, including establishing a service list for key projects involving medicines and medical devices, optimizing the means of services and others.
Source: Shanghai Municipal Medical Products Administration
https://yjj.sh.gov.cn/zx-yp/20230803/cf4e48830b4247c6829d05834d9fef70.htmlOne Week in Shanghai
【Official Activities】
1. 2023 INCLUSION·Conference on the Bund to Open on September 7
【Keywords: INCLUSION·Conference on the Bund; Financial Technology】
The Organizing Committee of INCLUSION·Conference on the Bund announced on August 8, 2023 that the 2023 INCLUSION·Conference on the Bund will be held on September 7-9 at the Shanghai Expo Park in Huangpu District. The conference will feature one main forum, 36 insightful forums, an 8,000-square-meter technology exhibition, and a 3,000-square-meter green market. Participants will have the opportunity to experience cutting-edge technologies along the Huangpu River.
Source: Shanghai Huangpu
2. 2023 Zhangjiang Digital Chain (Metaverse) Innovation Contest Opens for Registration
【Keywords: Metaverse; Innovation Contest】
The 2023 Zhangjiang Digital Chain (Metaverse) Innovation Contest has opened for registration from August 8, 2023. The contest is divided into professional group and innovation group, targeting innovation companies, university teams and technology enthusiasts. The contest aims to create a collaborative platform for the metaverse industry, stimulate participants' innovation and creativity, showcase the empowering value of metaverse-related technologies for production and life, facilitate the conversion of application outcomes, and promote high-quality development of the industry.
Source: Pudong Release
【Social Activities】
1.2023 Shanghai Book Fair to Open Soon
【Keyword: Book Fair】
The 2023 Shanghai Book Fair will be held at the Shanghai Exhibition Center on August 16-22, with around 850 reading events - 467 at the main venue, and 142 as parallel events.
Source: Shanghai Release
2. Performing Arts Grand World · 2023 International Theater Invitation Exhibition Launched
【Keyword: International Theater Exhibition]】
The Performing Arts Grand World · 2023 International Theater Invitation Exhibition was launched on August 8, 2023. From September to the end of this year, a series of extraordinary theater works, including three for global debut, one for Asian debut, four for China debut and three for Shanghai debut, will be staged at the Great Theatre of China successively.
Source: Shanghai Huangpu
【Training】
1. Lectures on Empowering SMEs: Discover Foreign Trade Opportunities from Data
【Keywords: Foreign Trade; Marketing】
The Shanghai Foreign Investment Association has launched a series of lectures on empowering small and medium-sized enterprises (SMEs). In the latest session, statistic officers from the Shanghai Customs will introduce Shanghai's foreign trade operations in the first half of this year, and make some predictions for the second half. A team from NetEase will introduce their one-stop overseas marketing platform tailored for foreign trade enterprises. This platform can help trade companies in their precise marketing, customer acquisition, and efficient operational collaboration, and drive rapid growth in their foreign trade business.
Time: 14:30-16:00, August 22, 2023
Source: Shanghai Foreign Investment Association
Official Q&A
Q1: Interpretation III of the Circular on Carrying out Filing of Mobile Internet Application Programs -- how to process app filing?
A: In order to facilitate app operators to complete the filing process, after they fill out relevant filing materials and carry out real-name verification, their network access service provider or app distribution platform will submit the filing application online to the local communication administration through the 'National Internet Basic Resource Management System' (ICP/IP address/domain name information filing management system). App operators do not need to visit the communication administration's office or queue for filing.
At the same time, to alleviate the burden on app operators and reduce the amount of information to be filled, if app operators have already completed website filing procedures, there is no need to re-submit their identity information. Only supplementary information related to the app needs to be provided.
Source: MIIT Weibo News
Q2: Interpretation VI of the Circular on Carrying out Filing of Mobile Internet Application Programs -- other requirements to be met by related stakeholders
A: Network access service providers, app distribution platforms, and intelligent terminal manufacturers must not provide network access, distribution, pre-installation, and other services for apps that have not completed the filing procedures.
App operators, network access service providers, app distribution platforms, and intelligent terminal manufacturing enterprises must establish a sound mechanism for monitoring and handling illegal and irregular information. If they discover information that is prohibited from being published or transmitted by laws or administrative regulations, they must immediately cease transmitting such information, take measures to erase the information, prevent the spread of the information, maintain relevant records, and report to telecommunications regulators. They should also handle the situation according to the requirements of the telecommunications regulators.
Source: MIIT Weibo News
Expert Perspective
The Establishment of the Data Security Legislative Framework - Analysis of Series of Key Points of the Data Security Law of the People’s Republic of China
By Liu Xinyu, Wu Haoli (Zhong Lun Law Firm)
The first point is to clarify the scope of application of the Data Security Law
In terms of the scope of application, Article 2 of the Data Security Law essentially retains the provisions of the Draft for First Reading and the Draft for Second Reading of the law. It not only stipulates that the law is applicable to data processing activities conducted within the territory of China, but also grants extraterritorial applicability. This means that for data processing activities conducted outside the territory of the People's Republic of China that harm the national security, public interest, or the legitimate rights and interests of citizens and organizations of the People's Republic of China, China will also hold them legally accountable. Meanwhile, Article 3 of the law provides clear definitions for key terms such as 'data' and 'data processing', which are largely consistent with their definitions specified in the Draft for Second Reading. In terms of data definition, the law puts both electronic and other forms of data within its regulatory scope, thus filling gaps in existing legislation. This is conducive to regulating data activities beyond the online space. In the definition of data processing, the law specified that data processing activities include 'collection, storage, use, processing, transmission, provision, and disclosure' of data. This definition aligns with the definition of 'processing personal information' in the Civil Code.