Shanghai Releases Two New Policy Documents to Boost Foreign Trade and Foreign Investment

On April 4, 2023, the Shanghai Municipal People’s Government released the Several Measures of Shanghai Municipality to Attract and Use More Foreign Investment (the “Measures”) and the Several Policy Measures of Shanghai Municipality to Promote Foreign Trade Stabilization and Quality Improvement, both of which came into effect on April 6, 2023.

Among them, the Measures put forward 20 measures, calling for intensifying financial and tax support for the landing of foreign investment projects; and implementing the policy of temporary exempting income tax withholding for foreign investors’ direct investments using distributed profits, optimizing the handling process and making preferential policies more accessible to foreign-invested enterprises. All districts may, in light of their specific situations and within their statutory powers, reward foreign-invested enterprises, newly added investment projects and profit reinvestment projects that are in with the industrial development directions of Shanghai according to their overall local economic and social contributions.