Shanghai releases 50 preferential policies to support development of Lingang Special Area

Shanghai unveiled 50 preferential policies on Friday in administrative authority, human resources, finance, taxation, urban planning, industrial development, housing and infrastructure for the Lingang new area.

It also established a rule that any future policies more supportive of enterprises and talent in the city will automatically apply to Lingang.

Ma Chunlei, director of Shanghai Development and Reform Commission, said the rule was conducive to shape the expectations of enterprises and talent in the new area.

“At the same time, preferential policies can be constantly updated,” Ma said.

He said the rule would enhance market confidence and help enterprises and talent make long-term decisions.

Chen Yin, executive vice mayor of Shanghai and director of the Lingang Special Area Administrative Committee, said the new area will cover 872 square kilometers.

With the support of new policies, Lingang will adhere to the integration of industrial development and urban construction to provide more public services and create a livable and business-friendly modern town with a high quality of life.

It will also optimize education and medical resources and promote cultural, leisure and commercial activities.

Zhu Zhisong, deputy secretary-in-general of the Shanghai government and executive vice director of the Lingang committee, said the next step is to build Lingang into a green, ecological and low-carbon area with the integration of an intelligent administration, intelligent industrial parks and an intelligent community.

Lingang will introduce more high-quality capital and resources from home and abroad in education, health care, culture and sports, among other public service sectors, according to Zhu.

Universities, primary and secondary schools, hospitals and commercial complexes have been established in Lingang. The new area, which features the China Maritime Museum and Haichang Ocean Park, is accelerating construction of more cultural and tourism facilities, such as the world’s largest indoor ice and snow tourism project – “Ice and Snow World” — Shanghai Planetarium, Lingang Library and an aquatic sports center.

“The new area will create a cluster of international medical services and a cluster of sports, leisure and tourism,” Zhu said.

“Lingang will create the integrated development of high-end industry and high-quality new town,” he added.

Meanwhile, tax policies are expected to benefit not only manufacturers and R&D institutions in integrated circuits, artificial intelligence, biomedicine and civil aviation but also overseas investment and offshore businesses.

Yuan Baiwei, an inspector with Shanghai’s finance bureau, said a minimum of 100 billion yuan (US$14 billion) in financial support in the next five years would support innovation and entrepreneurship, talent introduction and cultivation and infrastructural construction in the new area.

Revenue generated from the new area in the next five years will also be used for its development.

The new area has lowered the threshold for overseas talent, according to Yu Chengbing, vice director of Shanghai Human Resources and Social Security Bureau.

Companies will be able to employ graduates from prestigious foreign universities with or without work experience.

Previously, foreigners needed to have at least two years’ work experience to apply for work and residence permits.

For enterprises in the new area, one business license or hygienic license with multiple addresses will help them expand their business more rapidly, said Peng Wenhao, vice director of Shanghai Market Supervision and Administration Bureau.

Companies with multiple outlets or branches do not need to apply for separate licenses for each venue. What they need to do is to submit a certificate to prove the right to use a new site.

The business watchdog will add the address of the new outlet to the company information immediately, Peng said.

In terms of financial policy, Li Jun, deputy director of the Shanghai Financial Services Office, expressed support for the listing of enterprises in the new area, particularly for science and technology enterprises. The funds raised by overseas IPOs could be used for investment and business activities in the new area, Li said.