Action plan to restore Shanghai's economy

Shanghai has launched measures to stabilize foreign investment and foreign trade, as well as promote consumption and investment.

These are among a series of policies and measures in a newly released action plan to restore the city's economy after the blow of the pandemic.

Focusing on stabilizing foreign investment, the city will establish a service mechanism for key foreign-funded enterprises to resume work and production, assigning personnel to offer follow-up services, who will help key foreign enterprises solve major problems such as the resumption of work and production, logistics and transportation, and anti-pandemic materials.

To guarantee the smooth progress of major foreign investment projects, the city will bring online a service system for such projects.

Authorities of the city and districts will join hands, combining online and offline services, to ensure the projects under negotiation, contract and construction will resume operation as soon as possible. Multinational enterprises are getting further support to set up their regional headquarters and research and development centers in the city.

On stabilizing foreign trade, Shanghai is to enhance support for enterprises especially in terms of export tax rebates and export credit insurance.

Ports and shipping enterprises are encouraged to reduce or waive cargo storage fees and demurrage fees, to help foreign trade enterprises to fulfill orders.

To promote consumption, meanwhile, the city is taking bulk consumption as a major focus. It is to add 40,000 new non-business passenger car license quotas during the year, reduce part of the passenger car purchase tax in phases in accordance with national policy requirements, and give a one-time subsidy of 10,000 yuan to individual consumers who replace their old cars with total electric vehicles.

People are also encouraged to replace old home appliance with new green ones. Consumption of green and intelligent home appliances, green building materials, energy-saving products can receive some appropriate subsidies.

It will also support large commercial enterprises and e-commerce platforms to offer coupons.

Authorities are asked to make use of the special funds for the development of cultural and creative, film, tourism and sports industries, and vigorously promote consumption and accelerate recovery of these industries.

On expanding investment, new plans and supporting policies will be released to promote the renovation of old urban areas. It plans to newly launch more than eight projects of rebuilding urban villages.

Larger issuance of corporate bonds will be supported, and new infrastructure will be included into the scope of local government special bond support.

It will further give play to the infrastructure real estate investment trusts (REITs), implement the city's 20 supporting policies on REITs, to fully guide and stimulate social investment.