The State Council issued the "Comprehensive Alignment with International High-standard Economic and Trade Rules".

Promote the high level of the China (Shanghai) Pilot Free Trade Zone

Institutional Opening-up Overall Plan".

Guo Fa [2023] No. 23

The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, and all ministries and commissions of the State Council, and all agencies directly under the State Council:

The "Overall Plan for Promoting High-level Institutional Opening-up in the China (Shanghai) Pilot Free Trade Zone in Connection with International High-standard Economic and Trade Rules" is hereby issued to you, please earnestly implement it.

State council

November 2023, 11

(This article has been abridged)

Fully align with international high-standard economic and trade rules

Promote the China (Shanghai) Pilot Free Trade Zone

The overall plan for high-level institutional opening-up

Supporting the China (Shanghai) Pilot Free Trade Zone (including the Lingang New Area, hereinafter referred to as the Shanghai Pilot Free Trade Zone) to align with international high-standard economic and trade rules and promote high-level institutional opening-up is an important measure to comprehensively deepen reform and expand opening-up in the new era. This plan is formulated in order to fully implement the promotion strategy of the pilot free trade zone, better play the role of the Shanghai pilot free trade zone, and build a national institutional-type opening demonstration zone.

1. General requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the 20th National Congress of the Communist Party of China, implement the overall national security concept, adhere to the general tone of seeking progress while maintaining stability, completely, accurately and comprehensively implement the new development concept, build a new development pattern, promote high-quality development, better coordinate the overall domestic and international situations, coordinate development and security, fully align with international high-standard economic and trade rules, steadily expand institutional opening-up such as rules, regulations, management and standards, and within the planning scope of the Shanghai Pilot Free Trade Zone. We will take the lead in building an institutional system and regulatory model that are in line with high-standard economic and trade rules, and explore new paths and accumulate new experience for comprehensively deepening reform and expanding opening-up.

2. Accelerate the expansion and opening up of trade in services

(1) Financial services

1. Encourage financial institutions and payment service providers to take the lead in introducing advanced international standards for electronic payment systems, and carry out cross-border authentication and electronic identification of digital identities. Support the introduction of overseas electronic payment institutions in accordance with laws and regulations. The electronic payment regulator shall disclose the relevant laws and regulations of electronic payment in a timely manner.

2. Under the framework of the national security management system for cross-border data transmission, financial institutions are allowed to transfer data required for daily operations overseas. Where the export of financial data is involved, the regulatory authorities may take regulatory measures based on the principles of national security and prudence, while ensuring the security of important data and personal information.

3. Deepen international cooperation in financial technology, facilitate financial institutions to carry out cross-border asset management, and provide domestic investment management, valuation and accounting services for fund products established overseas. Promote the pilot of e-RMB in an orderly manner, and explore the application scenarios of e-RMB in the field of trade. Under the premise of controllable risks, we will prudently explore the relaxation of restrictions on non-resident M&A loans in the Lingang Special Area, expand the applicable scenarios of loans, and support local financial regulators in researching and formulating business guidelines on the basis of fully summarizing the experience of individual pilot projects and comprehensively assessing the risk management situation.

4. Optimize the policies for the centralized operation and management of cross-border funds of multinational companies, support multinational companies to set up fund management centers, and improve capital pool arrangements. The construction of an international reinsurance board in the Lingang New Area. Support insurance funds to rely on relevant exchanges in the Shanghai Pilot Free Trade Zone to invest in gold and other commodities on a pilot basis.

5. Enhance the functions of the free trade account system, optimize the account rules, and realize the orderly and free flow of funds between the Shanghai Pilot Free Trade Zone and overseas in accordance with the law.

6. Study eligible asset management companies (excluding financial asset management companies, fund management companies, and local asset management companies) to carry out cross-border transfer of asset-backed securities, explore cross-border transfer of financial leasing assets, and pilot settlement in RMB. Support commercial factoring companies to handle commercial factoring business based on real international trade background under the premise of meeting the consistency requirements of import and export and foreign exchange receipt and payment.

(2) Telecommunications services

7. On the premise of not impacting quality and reliability, basic telecommunications enterprises are to provide reasonable and non-discriminatory treatment, promptly provide mobile phone numbers (non-IoT numbers) number porting services in accordance with laws and regulations, and continuously improve the quality of services.

8. On the premise of complying with laws, regulations, and industry management requirements, basic telecommunications enterprises are to further improve the mobile communications resale business service system, reasonably determine rates, and do not set discriminatory conditions.

3. Enhance the level of liberalization and facilitation of trade in goods

(1) Import of specific goods

9. Bonded goods that are temporarily allowed to enter the special customs supervision area of the Shanghai Pilot Free Trade Zone for repair from abroad shall be bonded and re-exported shall be exempted from tariffs, and tariffs shall be levied in accordance with regulations if they are not re-exported and converted to domestic sales.

10. Traders who import wine and distilled spirits in the Shanghai Pilot Free Trade Zone and whose domestic agents are registered in the zone are exempt from the Chinese translation of the trademark or trade name, as well as the expiration date, shelf life and latest sale date on the container, label and packaging. If the above date is shorter than expected by the consumer due to packaging problems, container problems or the addition of perishable ingredients, traders should make a statement.

11. If medical devices are imported into the Shanghai Pilot Free Trade Zone, and the domicile of the domestic agent designated by the overseas registrant or record-filing person is in the zone, the domestic agent may, under the effective control of the medical device quality management system, affix the Chinese label or sub-label in the special customs supervision area before sales or supply. The application of Chinese labels or sublabels shall be reported to the territorial drug regulatory department and subject to the supervision of the territorial drug regulatory department. The Customs and the territorial drug regulatory departments shall establish a working cooperation mechanism to share the above-mentioned information on imported medical devices with Chinese labels or sub-labels, and the Customs shall do a good job of customs clearance and inspection supervision in the import process based on the information provided by the territorial drug regulatory departments.

(2) Management of commercial cryptography products

12. Except for those included in the list of commercial cryptography import permits, restrictive measures are not to be employed for the import of commercial cryptography products that do not involve national security or the societal public interest.

13. Except for those involving national security or the societal public interest, it is not mandatory to formulate or implement technical regulations and conformity assessment procedures to obtain proprietary cryptographic information, or to require partnerships with domestic enterprises or the use of specific cryptographic algorithms for the manufacture, sale, distribution, import, or use of commercial cryptographic products.

14. Accelerate the advancement of the establishment of a commercial cryptography testing and certification system, encouraging the active adoption of commercial cryptography testing and certification results. Commercial cryptography products involving national security, the national economy and the people's livelihood, or the societal public interest shall be tested and certified by a qualified commercial cryptography testing and certification body before they can be sold or provided.

(3) Customs clearance facilitation

15. Optimize the operation mode of the international transit consolidation platform, attract global LCL enterprises to set up LCL centers in the Yangshan Special Comprehensive Bonded Zone, and allow multi-format operations such as export LCL and international transit dismantling and LCL. Transit goods that are shipped from overseas, reloaded, split and consolidated through Yangshan Special Comprehensive Bonded Zone, and then transported to other countries or regions will not be inspected (except as otherwise provided by laws and regulations).

16. For goods imported into the Shanghai Pilot Free Trade Zone, overseas exporters or manufacturers are allowed to apply to the local customs for advance ruling through their agents in the zone.

17. Simplify domestic quarantine measures for specific categories of imported goods that meet the requirements for quarantine treatment abroad.

18. Support foreign stakeholders to participate in the formulation and revision of relevant standards in the Shanghai Pilot Free Trade Zone on an equal footing in accordance with law. Except for those that need to be kept confidential in accordance with the law, when formulating local regulations and rules, the Shanghai Pilot Free Trade Zone shall solicit opinions from the public on the draft and its explanations, etc., for a period of not less than 60 days, and encourage important documents to be provided in foreign languages for reference at the same time.

19. On the premise of ensuring data security, support the establishment of a cross-border data exchange system for Shanghai's "single window" for international trade; Adopt internationally recognized standards and available open standards to enhance system compatibility and interoperability; To share information, experiences and best practices in the field of data exchange system development and management through international cooperation and to jointly develop data exchange system pilot projects.

20. Encourage logistics companies to optimize and innovate "last mile" distribution solutions. Pilot construction of automated driving intelligent test lane in Yangshan Port.

21. Carry out integrated management of areas and ports in the Yangshan Special Comprehensive Bonded Zone on a pilot basis, allow logistics and processing in the port area, and cancel the restriction on the storage period of goods. Under the premise of meeting the regulatory conditions, goods entering and leaving the Yangshan Special Comprehensive Bonded Zone through other ports in Shanghai such as Waigaoqiao Port Area and Pudong International Airport will be subject to the first-line customs clearance policy on a pilot basis.

(4) Customs supervision and law enforcement

22. The Shanghai Pilot Free Trade Zone shall set up relevant procedures to prevent the disclosure of confidential information submitted by relevant business entities to the Customs in accordance with laws and regulations (including information that may damage the competitive position of information providers once disclosed) without the authorization of the business entity.

23. For the import and export of suspected infringing and counterfeit goods, the customs shall take border measures ex officio. For suspected infringing and counterfeit goods found in transit, the customs may notify the customs of the country of destination of the goods with relevant information about the goods.

Fourth, take the lead in implementing high-standard digital trade rules

(1) Cross-border flow of data

24. Where enterprises and individuals truly need to provide data overseas due to business needs, and it meets the national security management requirements for cross-border data transmission, they may provide it overseas.

25. In accordance with the data classification and hierarchical protection system, support the Shanghai Pilot Free Trade Zone in taking the lead in formulating important data catalogs. Guide data processors to carry out self-assessment of the risks of data export, explore the establishment of a legal, safe and convenient mechanism for cross-border data flows, and increase the convenience of cross-border data flows.



































(2) Procurement management

52. When preparing a government procurement budget, procurers should fully consider the following factors: various expenses, commissions, interest, etc.; the price of the selective purchase; All contracts under the same procurement.

53. Conduct disclosure of government procurement information in accordance with laws and regulations. Whenever possible, tender documents are made available to suppliers free of charge, and procurement announcements are encouraged to be published in both Chinese and English.

54. Where the procurer has evidence to prove that the relevant supplier has committed a major and substantial breach of contract with the procurer or a unit with which the procurer has a management relationship within 3 years prior to participating in government procurement activities and has failed to take reasonable remedial measures in a timely manner, it may refuse to participate in the procurement activities, but this shall be stated in the procurement documents.

55. Procurers may set technical requirements for environmental protection and information protection when compiling government procurement requirements. If there are international standards for the subject matter of procurement, the purchaser may adopt the international standards according to the actual situation.

56. At the request of the supplier who has not won the bid or the transaction, the purchaser shall reply to the supplier who has not won the bid or the reason for the transaction or the explanation of the advantages of the supplier who has won the bid or the transaction, and the content of the reply shall not involve trade secrets.

57. Purchasers and procurement agencies shall properly keep the procurement documents, records and reports of each procurement activity of government procurement projects, and shall not forge, alter, conceal or destroy them. Procurement-related documents shall be kept for at least 15 years from the date of completion of the procurement.

58. Increase the level of digital technology application of electronic procurement platforms for government procurement, promote the transparency, standardization, and intelligence of the procurement process, and advance the use of electronic licenses.

59. Government procurement should facilitate the participation of small and medium-sized enterprises and encourage electronic procurement. Depending on the size, design and structure of the procurement, contract subcontracting may be implemented for SMEs.

(3) Procurement supervision

60. Designate an examination authority independent of the procurer to review complaints from suppliers about government procurement activities. Purchasers and suppliers are encouraged to resolve complaints through negotiation.

61. If a supplier believes that its own rights and interests have been harmed by government procurement documents, the procurement process, the results of winning bids, or the results of the transaction, it may challenge the purchaser in writing within 10 days from the date on which it knows or should know that its rights and interests have been harmed.

7. Promote the reform of the relevant "post-border" management system

(1) Reform of state-owned enterprises

62. Deepen the transformation of the functions of state-owned assets regulators, implement new management models that are different from those of wholly state-owned companies for mixed-ownership enterprises and wholly state-owned companies with diversified equity held by state-owned assets regulators, standardize the procedures for shareholders to perform their duties, and give full play to the role of shareholders' meetings.

63. When a designated franchised enterprise purchases or sells goods or services in the Shanghai Pilot Free Trade Zone, it shall make decisions in accordance with commercial considerations.

64. Establish a scientific, reasonable, stable and reliable compensation mechanism for enterprises that provide public goods and services in the Shanghai Pilot Free Trade Zone.

65. Establish and complete systems for information disclosure of state-owned enterprises, continue to improve and standardize procedures for information disclosure, strengthen categorical guidance for information disclosure efforts in state-owned enterprises, and promote state-owned enterprises holding or equity participation in listed companies to raise the level of standardization of governance operations.

(2) Protection of workers' rights and interests

66. Support enterprises in the Shanghai Pilot Free Trade Zone in taking the lead in creating harmonious labor relations, fully implement the labor contract and collective contract systems, protect the basic rights and interests of workers such as labor remuneration, rest and vacation, labor safety and health, social insurance, and vocational skills training in accordance with laws and regulations, establish mechanisms for collective negotiation and normal increase of workers' wages, strengthen labor protections, and improve labor conditions. Strengthen labor law supervision by trade unions, and carry out legal examinations of labor and employment.

67. In accordance with the provisions of relevant laws and regulations, and with reference to the requirements of the International Labor Organization's Convention on Labour Inspection in Industry and Commerce, and other requirements, assign labor security inspectors in the Shanghai Pilot Free Trade Zone to carry out smart inspections and increase the force of labor security supervision and law enforcement. Encourage and support the development of personnel training in the field of international labor.

68. Promote the improvement of relevant local regulations and government rules, and local governments, relevant departments, and institutions must not lower the level of protection of workers' rights and interests for the purpose of promoting trade or investment.

69. Complete tripartite mechanisms for coordinating labor relations, and routinely accept relevant opinions from workers, trade unions, enterprises, and so forth; Handle and accept written public comments in relevant fields, carry out public opinion deliberations, and disclose the results of deliberations as appropriate; Actively cultivate grassroots labor relations service sites, etc., and encourage and support social forces to participate in the negotiation and mediation of labor and personnel disputes.

(3) Environmental protection

70. Introduce biodiversity conservation policies to support the Shanghai Pilot Free Trade Zone in strengthening the conservation and sustainable use of biodiversity.

71. Support international cooperation, experience sharing and capacity building in the field of green and low-carbon. Accelerate the establishment of a national carbon emission trading agency. Enterprises in the Lingang Special Area are allowed to carry out high and low sulfur fuel oil blending and blending business for the purpose of ship supply in the form of processing trade or bonded logistics, and qualified storage facilities can have the functions of export supervision warehouses and bonded warehouses at the same time. Support the Lingang Special Area to accelerate the construction of hydrogen energy core technologies and standard systems, allow the construction of hydrogen production and hydrogen refueling integrated stations in accordance with laws and regulations, carry out small-scale wind power hydrogen production in tidal flats, and improve the high-pressure hydrogen storage system.

72. Support the establishment of certification bodies, carry out certification of green products and ecological products, carry out traceability of certified products, and establish traceability mechanisms for certified products.

73. Support the fight against illegal, unreported and unregulated fishing to protect relevant fish stocks by regulating fishing gear practices, reducing fishing hours, reducing the number of fishing vessels, and imposing fishing quotas.

74. Encourage the import and export of environmental products and services, enrich the system of green financial products and services, research and promote green bonds and environmental, social and governance (ESG) indices, and promote cooperation in environmental products and services.

8. Strengthen the construction of risk prevention and control systems

75. Complete risk assessment mechanisms. Track the progress of the pilot in a timely manner, analyze and assess new situations and new problems, and take measures such as adjustment, suspension or termination according to the degree of risk.

76. Establish a risk early warning system. With the support of new technologies to improve the efficiency of supervision, big data analysis technology is used to judge and identify risks, and classification and supervision are carried out according to the degree of risk.

77. Strengthen financial risk prevention and control. Based on the principle of prudence, the financial regulatory authorities shall take reasonable measures to protect the legitimate rights of financial consumers and ensure the stable operation of the financial system. Carry out financial regulatory information sharing, regulatory coordination, and cross-border risk disposal cooperation in accordance with laws and regulations. Strengthen the collection, monitoring and use of cross-border revenue and expenditure business data. Through the "sandbox supervision" and other regulatory mechanism innovation, to ensure the effective isolation of risks. Adhere to the requirements for licensed operation of financial business, and strengthen the monitoring and prevention of relevant risks through risk warnings, calculation of risk control indicators, and information reporting.

78. Strengthen mutual recognition and cooperation in regulation. Draw on international practices and rules, accept reports from other countries' regulatory agencies as appropriate, study and initiate mechanisms for mutual recognition of supervision, and do a good job of data exchange, mutual recognition of results, work coordination, and mutual assistance in law enforcement. Establish cooperation mechanisms with overseas cybersecurity institutions to promote the formation of global cooperative solutions to cybersecurity issues.

79. Strengthen security review mechanisms. Implement the negative list for foreign investment access, and make good use of mechanisms such as security reviews for foreign investment. Comprehensively strengthen network security inspections, and implement responsibility for the protection of critical information infrastructure. Carry out information disclosure in accordance with laws and regulations, and further standardize procedures for the disclosure of important information.

80. Promote whole-process regulation. Improve regulatory rules, innovate regulatory methods, improve a regulatory system with clear rights and responsibilities, fairness and justice, openness and transparency, simplicity and efficiency, coordinate the promotion of market supervision, quality supervision, safety supervision, network supervision, etc., strengthen coordinated supervision, and plug regulatory loopholes.

The Shanghai Municipal People's Government should strengthen the main responsibility, further improve the working mechanism according to the tasks determined in this plan, and solidly promote the implementation of various measures; It is necessary to establish and improve the institutional innovation mechanism to encourage bold experiments and bold breakthroughs; It is necessary to make full use of the power to formulate laws and regulations in Pudong New Area, and strengthen the legal guarantee of the reform pilot; It is necessary to strengthen security assessment and risk prevention, and improve the level of response to major emergencies; It is necessary to speed up the construction of a high-level professional opening up work team to provide strong support for building a national institutional opening up demonstration zone. The relevant departments of the State Council should, in accordance with their duties and division of labor, give active support, form a joint force in their work, and ensure that all measures are put in place. If it is really necessary to formulate specific opinions, measures, rules and plans, they should be completed within one year from the date of issuance of this plan to ensure that the implementation is effective. The Ministry of Commerce should strengthen overall planning and coordination, organize and carry out effectiveness evaluation, guide the implementation of pilot tasks, and support Shanghai to summarize mature experience and replicate and promote it in a timely manner. Where it is necessary to adjust existing laws or administrative regulations, it shall be handled in accordance with legal procedures. The Shanghai Municipal People's Government and the Ministry of Commerce should promptly sort out and study the new situations and new problems that arise in the implementation of this plan, continuously adjust and optimize measures, and report major matters to the Party Central Committee and the State Council for instructions in a timely manner.