Shanghai unveils measures to help enterprises reduce costs

Shanghai announced a package of 30 measures on Friday to support industrial enterprises and foster sustainable economic growth. The measures, designed to be in effect until 2027, target cost reductions, enhanced services, and support for multinational corporations.

The plan offers various cost-saving measures for industrial giants like Baosteel. This includes reduced prices for utilities like electricity and water, eliminating peak-season surcharges during holidays. Additionally, businesses exceeding 500 million yuan (US$69.4 million) in annual output will benefit from streamlined land-use procedures, facilitating expansion or change as needed.

For multinational corporations considering increased investment in Shanghai, industrial parks can now offer "rent-to-buy" options for customized factories. This flexibility allows companies to secure facilities while navigating headquarters' approval.

The package encourages industrial enterprises to embrace digital transformation. Financial support is available for projects focusing on digital supply chains, green technologies, and logistics digitization. With approval, individual projects can receive up to 50 million yuan in financial aid. For example, the policy promotes the upgrade of logistics warehouses to modern standards, enhancing cargo transport efficiency.

Shanghai aims to streamline the application process for enterprise-related policies, ensuring easy access to benefits and reduced regulatory burdens. A monitoring system will be implemented to track enterprise fees and regulate third-party service institution charges, promoting a more transparent and supportive business environment.

This comprehensive initiative by Shanghai demonstrates its commitment to strengthening industrial competitiveness and fostering a thriving business ecosystem within the city.