III . Investment
i. Policy and Administrative Rules
Catalogue of Related Laws
Foreign Trade Law of the People's Republic of China Customs
Law of the People's Republic of China
Law of the People's Republic of China on Import and Export Commodity Inspection
Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures
Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures
Law of the People's Republic of China on Foreign-Capital Enterprises
Company Law of the People's Republic of China
Law of the People's Republic of China on the Entry and Exit Animal and Plant Quarantine
Law of the People's Republic of China on Control of the Entry and Exit of Aliens
Law of the People's Republic of China on the Control of the Exit and Entry of Citizens
Securities Law of the People's Republic of China
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises
Individual Income Tax Law of the People's Republic of China
Law of the People's Republic of China on the Administration of Tax Collection
Environmental Protection Law of the People's Republic of China
Law of the People's Republic of China on Evaluation of Environmental Effects
Law of the People's Republic of China on Promotion of Cleaner Production
Law of the People's Republic of China on Prevention and Control of Desertification
Marine Environment Protection Law of the People's Republic of China
Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution
Law of the People's Republic of China on Prevention and Control of Environmental
Pollution by Solid Waste
Law of the People's Republic of China on Prevention and Control of Water Pollution
Law of the People's Republic of China on Prevention and Control of Environmental
Noise Pollution
Law of the People's Republic of China on Prevention and Control of Radioactive
Pollution
Frontier Health and Quarantine Law of the People's Republic of China
Labor Law of the People's Republic of China
Trade Union Law of the People's Republic of China
Searching Website for the Related Laws
1 .Searching System of Laws and Regulations of China (website of National
People's Congress of China)
http://law.npc.gov.cn:87/home/begin1.cbs
2. China Legislative Information Network System
http://www.chinalaw.gov.cn/jsp/jalor/index.jsp
3. Ministry of Commerce
http://www.mofcom.gov.cn
The above-mentioned websites are for reference only. 51
ii. Major Industries in Shanghai for Foreign Investment
1. Manufacturing Sectors
(1)Equipment Manufacturing
(2)Electronics and Telecommunication Equipment Manufacturing
(3)Automotive Manufacturing
(4)Modern Biological Technology and Pharmaceutical Manufacturing
(5)New Material
(6)Ship Manufacturing
(7)Petrochemical and refinery chemical manufacturing
(8)Advanced Steel Manufacturing
(9)Airplane Manufacturing
(10)Other industries suitable for city development
2. Services Sectors
(1)Financial Service
(2)Logistics
(3)Distribution
(4)Social Service
(5)Science, Research and Technology Service
(6)Real Estate
(7)Tourism
(8)Information and Consultation
3. Urban Infrastructure and Public facilities
4. Agriculture, Forestry, Animal Husbandry and Fishing
iii. Procedures for Enterprise Establishment
Basic procedures
Procedures Simplified Application for and Approval of Foreign-invested Projects
1. Regular Examination and Approval Procedures
Examination and approval for below-mentioned three circumstances refers to the following work flow chart:
(1)Projects for examination and approval of relevant departments of the State of Council
(2)Projects with fundamental constructive contents
(3)Other projects regulated by the state
2 . Simplified Examination and Approval Procedures According to" Opinions on approval procedures and services for foreign invested projects in Shanghai"(2003), the examination and approval for Projects with no above-mentioned three circumstances shall enjoy simplified procedure, that is, the three steps for approval of Project Proposal, Feasibility Study, contracts, articles of associations will be merged into one-step approval.
iv. Living Environment
Visa
For foreign investors' planning business trip in China, they may ask their Chinese trading partner to apply for visa notice at the foreign affairs administration of the city where their Chinese partner is located. The visa notice is necessary for the visa application to the Chinese Embassy in the foreign investor's own country.
Work and Residence Permit
Foreign invested enterprises are subject to apply for Employment Certification at Shanghai Labor and Social Security Bureau for their intended foreign employees. The Employment Certification is necessary for the application of working visa notice at Shanghai Municipal Foreign Economic Relations and Trade Commission. The employee shall apply for working visa at Chinese Embassy with the notice and certification, and complete the registration of employment at Shanghai Labor and Social Security Bureau within 15 days after arrival in China. The employment statement is compulsory for the foreign employee to obtain his Residence Permit at Entry-Exit Administration Bureau of Shanghai Public Security Bureau.
Urban Life
Shanghai has made remarkable progress in pollution control and environment protection and the city's environment has greatly improved. In 2005, the city invested RMB 28.1 billion, or 3.07% of the city's GDP, into environmental protection projects. As a result, the water quality in the city had been further improved. By the end of 2005, the city's areas of parks and gardens amounted to 28,900 hectares. In total, 12,000 hectares were public green areas. The average per capita green area reached 11 square meters in the city and the green area coverage reached 37% of the city's total territory.
By the end of 2005, there were 2,452 medical institutions of various categories in the city, of which 487 were hospitals (19 Sino-foreign equity or cooperative joint venture medical institutions), providing services to the domestic and overseas patients including those from Hongkong and Macao. The multi-level medical service can meet various demands.
There were 221 Sino-foreign jointly operated school-running institutions and projects in Shanghai in 2005. There were 21 schools of children of foreign nationals, 5 local schools setting up their international divisions (4 senior high schools and 1 kindergarten), and primary and high schools and schools of children of foreign personnel accepted 18,300 foreign students. There were 26,200 foreign students in institutions of higher education.
Altogether there were 44,500 foreign students in Shanghai. The number of students from Hong Kong, Macao and Taiwan studying in Shanghai were rising quickly, the number of the college students in Shanghai has reached 1,700 and the same policies as for local students gradually apply to them.
Shanghai maintains good social order through the operation of well-organized and highly efficient public security system.
Shanghai Public Security Bureau 110 Emergency Call Center receives calls in 8 languages of English, German, Japanese, Russian, etc. The Emergency Reaction Center has been established with the joint efforts of Crime Call 110, Fire Call 119 and Traffi c Control Platform, which proves efficiency in protection of the public security of the city.
Shanghai citizens live with rich art cultures. Shanghai Grand Theatre, Oriental Art Center, Shanghai Concert Hall, and other culture facilities have met all the infrastructure requirement of the world class symphony orchestra. It is the" Shanghai- Style" culture, which incorporates things of diverse nature, combines indigenous with foreign elements, and integrates west with Chinese, that attracts many overseas groups to stage their performance in Shanghai.
Shanghai provides all the necessary supporting services, including grand scale shopping malls, super-markets, convenience stores, and restaurants, body building centers, to make life in the city more convenient and comfortable.
Driving License
According to the traffic regulations of China , foreigners driving motor vehicle in China ought to hold the Motor Vehicle Driving License of the People's Republic of China issued by the Chinese traffic administrative authorities .If you have your own country's or international valid driving license, you may take your overseas valid driving license and Identity Card (Consular Officer Identity Card or Service Identity Card) to the Vehicle Administrative Office of the Shanghai Municipal Public Security Bureau and apply for a new driving license.
v. Reference Prices of Basic Elements
Water (tap water, industrial use water, etc.)
Charges of Using Drainage Facilities
Drainage for residential use is RMB 0.90 per cubic meter. When the total amount of using water surpasses 180 cubic meter in a year, the part over 180 cubic meter should be charged RMB 1.00 per cubic meter. Charges of Drainage for industry, administrative organization, service, and special use is RMB 1.10-1.40 per cubic meter.
Electricity(Industrial use and Civil use)
Gas Price
Labor Policies
Wages, Insurance and Welfare ofEmployees1. Foreign-invested enterprises(FIE) can at their discretion determine company organization and personnel deployment according to its own requirement. However, the application for the employment of staff from other provinces and cities, Taiwan, Hongkong and Macao and expatriates shall be forwarded to Shanghai labor and Social Security Bureau for approval.
2. FIE is authorized to arrange the wage system, forms of payment, allowances and compensation for its employees, as long as they met the minimum requirement by Shanghai Municipal Government released by September 2006, which is 750 RMB/Month.
Please consult Shanghai Labor and Social Security Bureau ( www.12333.gov.cn) for more details with reference to different industries and employee qualifications.
3. Social Insurance: FIE is subject to apply social insurance for its employees.
Basic Pension
The monthly base is calculated according to the employee's monthly average wages of the previous year. The basic pension comprises of 8% of the base paid by the employee, and 22.5% of the base paid by the employer.
Unemployment Pension
1% of the base is paid by the employee and 2% of the base is paid by the employer.
Medical Insurance
2% of the base paid by the employee, and 12% of the company's Chinese employee's average monthly wage paid by the employer.
Social Insurance for Small Towns in Shanghai
"Interim Measures of Social Insurance for Small Towns in Shanghai" came into force on October 20th, 2003. The measures apply to employers in the suburbs of the city and employees with Shanghai citizenship, and to other people approved by shanghai Municipal Government. Employer shall pay 24% of the employee's income for basic social insurance, which includes 17% for pension insurance, 5% for medical service insurance, and 2% for unemployment insurance. Procreation Insurance is exempt, while Insurance for employee's injury during employment shall be subject to regulation separately promulgated.
4. Housing fund:7% of the company's Chinese employee's average monthly wage paid by the enterprises, 7% paid by employee.
Land Policies
The State Council has released new notice on land control, in which the minimum land use fees for various industrial use has been promulgated and published.
The minimum price should be no less than the total land cost, including the obtain age, initial stage development and other regulated fees. The land for industrial use should be obtained through bidding procedure, and the bidding price should be no less than published minimum fee.
Related Articles:
Doing Business in Shanghai Municipality of China:I. Survey
Doing Business in Shanghai Municipality of China:II. Economy
Doing Business in Shanghai Municipality of China: IV. Development Zones
