Shanghai accelerates business reform as it targets global standards
Many global financial firms have set up offices at Shanghai Tower in Pudong.
Shanghai is stepping up efforts to become one of the best places in the world to do business. City officials announced 10 high-priority reforms on Thursday aimed at further improving its business environment to reach top global standards.
The measures target pain points of companies and are meant to produce visible results by the end of 2025.
The city is aligning its reforms with the latest global benchmarks from the World Bank, which recently ranked Shanghai as a global leader in 22 out of 59 key business environment indicators.
"It sets a higher standard for us," said Chen Yanfeng, deputy director of the Shanghai Development and Reform Commission.
He said the World Bank's evaluation focuses on transparent policies, digital public services and measurable outcomes.
Shanghai's strategy now includes absorbing international best practices, such as those from CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and DEPA (Digital Economy Partnership Agreement) agreements, Chen told a press briefing.
Shanghai's Lujiazui financial hub is home to numerous foreign companies.
Wang Yejun, legal director of the Shanghai Foreign Investment Association, has seen at firsthand how reforms picked up speed this year.
"Since early 2025, government departments across Shanghai have shown a clear focus on improving business satisfaction," Wang said. "They've taken concrete steps based on our feedback."
She cited the citywide rollout of the "inspection code" system as an example. The tool coordinates administrative checks to reduce repeat visits and disruptions.
"It's about cutting down on unnecessary inspections and doing them better," Wang said.
Another common request from foreign companies was for more flexibility in penalties. Wang said government departments responded quickly, organizing dialogue sessions between regulators and business associations.
"We also saw real progress in intellectual property protection," Wang noted. In April, the No. 3 Branch of the People's Procuratorate of Shanghai opened a workstation at the association's office. It helps foreign businesses handle IP protection cases with legal guidance and a faster response.
"Most foreign companies here are optimistic. They see the government's sincerity and the real actions taken to solve problems," she told Shanghai Daily.
A foreign employee uses a self-service terminal at the Shanghai Hongqiao Overseas Talent One-stop Service Center in Changning District.
Shanghai-based BIOYOND Robotics, a startup in life sciences automation, offers a glimpse of the city's support in action.
The firm uses AI and robotics to build smart lab systems. Such innovation takes time and money, said Yan Wenzhou, the company's chief product officer.
Thanks to the "no-application-needed" subsidy model, BIOYOND accessed support automatically through government data systems.
"It saved us time and paperwork," Yan said. "We could focus on research, not forms."
The company also received financial aid to attend various international expos. For its trip to Germany's MEDICA trade show, all it had to do was submit one form to qualify for support.
"That helps ease our way into overseas markets," Yan said.
The city is also to improve services in neighborhoods and towns. Local officials aim to respond faster to problems with the goal of helping small businesses feel more supported.
With foreign tourists flooding to the historic Qibao Old Street in Minhang District, merchants wanted to improve their English. Local enforcement officer Wu Xiaolong, who studied English, volunteered to teach.
He trains shop owners in simple phrases like "How much?" or "Cash or card?" He also teaches them about local laws on food safety and waste management.
"We use our skills to meet their needs," Wu said.
The automated laboratory of Shanghai-based BIOYOND Robotics
Funding remains a key hurdle for many businesses. To address the problem, Minhang's Zhuanqiao Town worked with a local bank to issue Shanghai's first tech merger loan under a national pilot program.
A 100-year-old vinegar company wanted to restructure ownership for innovation. The loan gave it the long-term capital to do so.
"This shows how financial tools can match business needs," said a deputy town governor.
In another case, Shanghai Macklin Biotech in Fengxian District faced a cash crunch. The district government offered its "Oriental Beauty Valley Loan," a credit product tailored for asset-light companies. The company secured a 10-million-yuan (US$1.38 million) loan without collateral.
"Such a model bridges the gap between banks and small tech firms," said Macklin CEO Yang Yong.
Shanghai is also taking action in several other key areas.
It will help businesses protect their reputations by removing fake or harmful online content.
The city plans stronger regional cooperation to safeguard intellectual property, with faster legal support and tougher crackdowns on counterfeiting.
To stop the abuse of legal loopholes, it will limit profit-driven complaints that disrupt businesses. And for companies facing closure, Shanghai aims to make bankruptcy faster and fairer, helping them to either recover or exit without an excessive burden.
"We want entrepreneurs in Shanghai to feel confident, respected, and free to innovate," said Gu Jun, head of the city's development and reform commission.
"We aim for businesses to thrive, grow and share in the city's progress," Gu said.
A visitor checks displays at a cosmetics company showroom in Shanghai's Fengxian District, part of the Oriental Beauty Valley cosmetics industry hub.
