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 part of a series of policies and measures in a recently released action plan to restore the city’s economy after the pandemic hit.

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

To ensure the smooth running of major foreign investment projects, the city will set up a service system for such projects online.

City and district authorities will join hands, combining online and offline services, to ensure that projects under negotiation, contract and construction will resume operations as soon as possible. Multinational companies receive additional support to set up their regional headquarters and research and development centers in the city.

Regarding the stabilization of foreign trade, Shanghai should strengthen its support for enterprises, especially in terms of export tax refunds and export credit insurance.

Ports and shipping companies are encouraged to reduce or eliminate cargo storage fees and demurrage charges to help foreign trade companies fulfill their orders.

At the same time, to promote consumption, the city is making bulk consumption a major focus. It is to add 40,000 new non-commercial passenger car license quotas during the year, reduce part of the passenger car purchase tax in stages in accordance with national policy requirements, and provide a one-time subsidy of 10,000 yuan to individual consumers who replace their old cars with fully electric vehicles.

People are also encouraged to replace old appliances with new green ones. The consumption of green and smart household appliances, green building materials and energy-saving products can receive appropriate subsidies.

It will also help large trading companies and e-commerce platforms to offer coupons.

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

On the increased investment, new supporting plans and policies will be released to promote the renovation of old urban areas. It plans to launch more than eight urban village reconstruction projects recently.

Greater issuance of corporate bonds will be supported and new infrastructure will be included in the scope of special support for local government bonds.

It will further bring infrastructure real estate investment trusts (REITs) into play, implement the city’s 20 supportive policies on REITs, to fully guide and stimulate social investment.

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