By Irene Rajagopal, Attorney at PAPER Law Office

Shanghai is aimed to upgrade its economic system and attract more foreign investment. Shanghai Municipal Government launched a new economic policy yesterday, a blueprint to create a fair and open business environment.

The policy titled “Opinions of the Municipal Government on Further Expanding the Opening and Upgrading of the New Economic System” ([2017] No. 26, 《市政府关于进一步扩大开放加快构建开放型经济新体制的若干意见》)(http://www.shanghai.gov.cn/nw2/nw2314/nw2319/nw41893/u21aw1225657.html) sets forth the guidelines on three aspects: (1) Further opening the market; (2) Creating the fair competition; (3) Attracting foreign direct investment.

Here are some highlights:

Certain restricted industries, accounting, construction architecture, rating services, will be open to foreign investors. Shanghai government will also loose the restrictions on foreign investments in banking, securities investment funds, insurance, insurance brokers.
Shanghai government encourages foreign investment in information technologies, intelligent manufacturing equipments, new materials, environment technologies.
Foreign companies may participate in the city's infrastructure constructions.
The bidding process of the government procurements will be open to both domestic and foreign investment companies.
Attract foreign talents and employees. A straightforward work permit system will be launched.
Foreign investors, who invest 1 million dollars and operate the direct investment for three years, are eligible to apply for permanent resident cards.
Foreign companies' intellectual property rights will enjoy more protections. Shanghai government will strictly protect the IP rights, establish the IP credibility management system, handle the IP infringement complaints efficiently.

About the author: Irene Rajagopal is an international copyright and business attorney. Her office is located in Bellevue, Washington State. She can be reached at irene@irenerajlaw.com

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