Shanghai Revises Regulations on Optimizing Business Environment to Align with World Bank’s New Assessment System

On November 23, 2023, Shanghai Municipal People’s Congress released the Decision on Revising the Regulations of Shanghai on Optimizing Business Environment (the “Decision”), to be effective on December 1, 2023.

The Decision makes revisions to 37 articles of the Regulations. To align with the World Bank’s new business environment assessment system, it puts forward new requirements with respect to property right protection, optimization of financing environment for small and medium-size enterprises (“SMEs”), implementation of policies that benefit enterprises, improvement of the mechanism for resolution of commercial disputes, improvement of bankruptcy handling systems, and regulation of law enforcement. According to the Decision, business entities such as enterprises are supported to practise sustainable development in respects of environment, society and governance, legitimate rights and interests of minority shareholders will be protected, an overseas emergency rescue mechanism for protection of corporate intellectual property rights will be established, a sound trade secret protection system will be set up, financial and funding rules that favor enterprises will be improved, and a mechanism for clarification of SMEs’ complaint-related information will be established.