SMPG GO D [2020]  No. 15 

 

Attention: all District People’s Governments, and all Commissions, Offices, and Bureaus (Administrations) of the Municipal People’s Government:

With the approval of Shanghai Municipal People’s Government, we hereby issued the Provisions of Shanghai Municipality on Encouraging the Establishment and Development of Foreign-Funded Research and Development Centers to you, and request you to implement them conscientiously.

General Office of Shanghai Municipal People’s Government

November 2, 2020

 

Provisions of Shanghai Municipality on Encouraging the Establishment and Development of Foreign-Funded Research and Development Centers

Article 1 (Purposes and Basis)

With a view to further opening-up, enhancing Shanghai’s global resource allocation and function as a scientific and technological innovation hub, and encouraging foreign investors to set up research and development centers in this Municipality, these Provisions are formulated in accordance with the Foreign Investment Law of the People’s Republic of China, the Regulations for Implementing the Foreign Investment Law of the People’s Republic of China, the Regulations of Shanghai Municipality on Foreign Investment, the Regulations of Shanghai Municipality on Advancing the Construction of a Scientific and Technological Innovation Center and other laws and rules.

Article 2 (Definitions)

A foreign-funded research and development (R&D) center refers to an institution established by foreign investors and engaged in research and experimental development (including pilot tests for research and development) in natural sciences and related scientific and technological fields. The research and development contents include basic research, application research and product development.

A global R&D center is an R&D center with a unique R&D technology platform, which undertakes the key steps and most of the processes of global R&D projects and synchronizes the progress of R&D projects with the world, and is a global level R&D center set up by foreign investors

Foreign-funded open innovation platform refers to an innovation model of foreign-funded R&D center, which means a R&D center that promotes project cooperation with SMEs and innovation teams by providing facilities and equipment, R&D sites and professional guidance, and relying on its technology, talents, capital, data and other resources to realize collaborative innovation.

Article 3 (Scope of Application)

These Provisions apply to the establishment and development of foreign-funded R&D centers, global R&D centers and foreign-funded open innovation platforms within the administrative area of this Municipality.

Article 4 (Responsibilities of Departments)

This Municipality shall establish a coordination mechanism for the work of foreign-funded R&D centers led by the municipal commerce department, with the participation of the municipal departments of science and technology, development & reform, economy and informatization, education, exit-entry administration of public security, finance, human resources and social security, planning and resources, ecology and environment, housing and urban-rural development administration, market regulation, taxation, medical products administration and intellectual property rights, as well as Shanghai Customs, Shanghai Head Office of the People’s Bank of China, Shanghai Branch of the State Administration of Foreign Exchange, and Shanghai Banking and Insurance Regulatory Bureau.

The municipal commerce department shall be responsible for the recognition and administration services of foreign-funded R&D centers, and all relevant departments shall do a good job in the relevant administration services of foreign-funded R&D centers within their respective responsibilities.

Entrusted by the municipal commerce department, Pudong New Area People’s Government, Lin-gang Special Area Administration, Hongqiao Central Business District (Hongqiao CBD) Administration and Zhangjiang Science City Construction Administrative Office shall carry out the recognition of foreign-funded R&D centers within their respective area.

Article 5 (Conditions for Recognition)

The application for recognition of a foreign-funded R&D center shall meet the following conditions:

1. It is a foreign-invested enterprise established in accordance with the law in this Municipality;

2. It has clear research and development fields and specific R&D projects, fixed sites, instruments and equipment necessary for scientific research and other necessary scientific research conditions; and

3. The accumulated total investment in R&D is no less than 2 million US dollars.

The application for recognition of a global R&D center shall meet the following conditions in addition to the conditions mentioned in the preceding Paragraph:

1. It is authorized by the parent company as the highest level R&D center in the world and undertakes global R&D projects; and

2. The accumulated total investment in R&D is no less than 10 million US dollars, and the proportion of R&D investment to the global R&D investment of the parent company is no less than 10% in the previous year .

To apply for recognition of a foreign-funded open innovation platform, the following conditions shall be met:

1. The total investment is no less than 2 million dollars;

2. It has an area of no less than 1,000 square meters of research and development sites; 

3. It has no less than 10 R&D and innovation projects signed and settled in; and

4. It has the necessary facilities and equipment for collaborative innovation and international expert guidance, and has international technology, talents and other resources.

Article 6 (Application Materials)

To apply for the recognition of a foreign-funded R&D center, the following materials shall be submitted:

1. the application signed by the legal representative;

2. the resolution of shareholders or resolution of the board of directors; and

3. the special audit materials for R&D investment.

To apply for recognition of a global R&D center, in addition to the materials specified in the preceding Paragraph, the following materials shall also be submitted:

1. the authorization document of the global R&D center signed by the authorized signatory of the parent company; and

2. the research and development investment and equity relations and other certification statements.

To apply for the recognition of an open innovation platform, the following materials shall be submitted:

1. the application signed by the legal representative;

2. the resolution of shareholders or resolution of the board of directors;

3. the certification statement of the investment amount of the platform;

4. the property right or lease certificate of the R&D sites; and

5. the contracts of platform service project settlement.

The above applications may be handled through the Integrated Online Platform of this Municipality. The government or department undertaking the recognition work shall, within 5 working days from the date of receiving the application materials, make a decision on whether to identify them or not.

Article 7 (Convenience of Cross-Border R&D Customs Clearance)

Qualified foreign-funded R&D centers may apply for the enterprise filing and import R&D supplies filing on the One-stop Service Information Platform of the Customs to enjoy customs clearance convenience measures for imported R&D supplies.

With the approval of the Customs, the service life of the secondhand key equipment for R&D which is temporarily imported for no more than one year may be appropriately extended. As for imported vehicles for experimental test that need to be reshipped out of the Chinese mainland within 6 months, the service life may be extended to two years at the longest with the approval of the Customs.

Relying on the joint supervision mechanism for the safety of special imports established by the Customs and Pudong New Area People’s Government on a pilot basis, this Municipality evaluates the source, safety, reasonable demand for R&D and production of special imports for foreign-funded R&D centers included in the “white list”, and optimizes the administration procedures for special imports.

Article 8 (Convenience of Cross-Border Financial Services)

The Shanghai Head Office of the People's Bank of China and Shanghai Branch of the State Administration of Foreign Exchange shall support banks to provide cross-border convertible financial services including cross-border financing, technology trade, franchising and centralized management of funds for foreign-funded R&D centers through free trade accounts, provide relevant cross-border financial services for employees of foreign-funded R&D centers to participate in equity incentive plans according to law, and provide cross-border convertible financial services based on personal free trade accounts for foreign-funded R&D centers to introduce talents overseas.

Banking financial institutions in this Municipality shall be encouraged to optimize the procedures of foreign-funded R&D centers for non-trade payment of foreign exchange, strengthen tax counseling and services for foreign-funded R&D centers, and provide a green channel for their non-trade payment contract filing and tax determination.

Article 9 (Introduction and Cultivation of Talents)

Foreign-funded R&D centers shall be included in the Shanghai Science and Technology Innovation Occupation List directly. Qualified returnees employed by foreign-funded R&D centers shall be given priority when applying for permanent residence in Shanghai. Domestic employees who are not registered permanent residents of this Municipality may apply for Shanghai Residence Permit in accordance with the provisions, and apply for corresponding residence permit points, or transfer to the permanent residence of this Municipality according to the conditions. High-end, scarce and urgently needed talents may be directly introduced and settled if they meet the requirements. Employed qualified overseas talents may enjoy additional points and relevant rights and interests when applying for Residence Permit for Overseas Talents. High-level overseas talents employed by foreign-funded R&D centers may enjoy relevant treatment according to the provisions.

High-end foreign talents employed by foreign-funded R&D centers shall be given priority when applying for the Confirmation Letter of Foreign High-End Talents. For foreign talents who really need to be employed, the restrictions on age, education and work experience may be appropriately relaxed upon the recommendation of the municipal commerce department. If qualified, the foreign employees of the foreign-funded R&D centers may apply for work permits by means of “informing + promising” and “accepting the vacancy”, and enjoy convenient services such as “no meeting” examination and approval while handling related businesses such as work permit notification and extension.

Excellent international students with a bachelor degree or above from universities in Shanghai or a master degree or above from universities in China, as well as excellent foreign university graduates with a bachelor degree or above from high-level universities outside the Chinese mainland, may work directly in foreign-funded R&D centers, and are not restricted by quota management of foreign university graduates.

When qualified high-level overseas students employed by foreign-funded R&D centers participate in the evaluation of senior professional and technical titles, their foreign professional work experience, academic or professional technical contributions may be used as the basis in the evaluation, and shall not be subject to the restriction of their domestic service years.

The departments of science and technology, and human resources and social security shall provide convenience for foreign talents introduced by foreign-funded R&D centers to work in this Municipality and apply for relevant certificates.

Article 10 (Convenience of Entry, Exit and Stay)

Qualified Chinese employees of foreign-funded R&D centers may apply for APEC Business Travel Cards. For those who need to go to Hong Kong, Macao, Taiwan or abroad for business, the relevant departments shall provide convenience.

Foreigners who need to enter the Chinese mainland temporarily for more than one time at the invitation of foreign-funded R&D centers may apply to the exit-entry administration department of public security for a multiple visa with entry validity not exceeding one year and stay not exceeding 180 days. Foreigners invited or employed by foreign-funded R&D centers who come to China without a visa may apply for a port visa in accordance with relevant provisions.

Foreign employees employed by foreign-funded R&D centers may apply for a Residence Permit for Foreigners valid for 3 to 5 years according to the provisions.

High-level foreign talents introduced by foreign-funded R&D centers may be given priority when applying for permanent residence after being recommended by the municipal commerce department.

Shanghai Customs shall provide a green channel for legal representatives, senior management personnel and scientific research personnel of global R&D centers to apply for health certificates.

Article 11 (Training Subsidies and Housing Security)

Foreign-funded R&D centers may receive corresponding vocational training subsidies for employees in accordance with relevant provisions.

Qualified foreign-funded R&D center personnel may apply for talent apartments or enjoy the talent housing subsidy policy in accordance with the provisions.

The reasonable housing needs of qualified senior management talents and core technical talents of global R&D centers shall be supported.

Article 12 (Convenience of Registration)

The sites of qualified foreign-funded open innovation R&D platforms may be identified as the centralized registration places, and the market regulation department shall provide registration services for platform contracted enterprises engaged in business projects that do not disturb peace or affect the surrounding environment and public safety.

Article 13 (Convenience of Environmental Impact Assessment and Hazardous Waste Management)

The ecology and environment department shall implement classified administration on environmental impact assessment of foreign-funded R&D centers, simplify the preliminary procedures of environmental impact assessment of qualified foreign-funded R&D centers, and strengthen on-processing and post-event supervision.

This Municipality supports foreign-funded open innovation platforms to participate in centralized management of hazardous waste.

Article 14 (Land for R&D)

The planning and resources department and all district people’s governments shall safeguard the reasonable land demand of foreign-funded R&D centers according to law, reasonably formulate control indicators such as the volume ratio and building height of R&D land, optimize the spatial pattern of scientific research and innovation, and promote the integrative development of scientific research and innovation functions and urban functions.

Article 15 (Industry-University-Research Institute Cooperation)

Foreign-funded R&D centers may participate in the construction of various scientific and technological innovation bases and platforms such as manufacturing innovation centers in this Municipality, and share the large-scale instruments, equipment and related R&D experimental services of R&D public service platforms with the Scientific and Technological Innovation Voucher.

Foreign-funded R&D centers may jointly carry out core technology research of industrial chain and postgraduate education with universities, research institutes and enterprises in this Municipality, and jointly build collaborative platforms such as practice bases, industrial colleges, joint laboratories of production, education and research, and data sharing platforms. Foreign-funded R&D centers with strong R&D capabilities and remarkable achievements in the combination of production, education and research may set up enterprise postdoctoral research workstations, and the qualified enterprise postdoctoral workstations may independently recruit postdoctoral researchers upon approval.

Article 16 (Participation in Government Projects)

Foreign-funded R&D centers may participate in projects organized and implemented by governments. For foreign-funded R&D centers undertaking projects such as science and technology plans organized and implemented by the government in key fields such as integrated circuits, biomedicine and artificial intelligence, all districts, key functional areas and development zones may provide support in accordance with relevant provisions.

Article 17 (Transfer and Transformation of Scientific and Technological Achievements)

Foreign-funded R&D centers may receive financial support for local scientific and technological achievements transformation projects in accordance with the Regulations of Shanghai Municipality on Promoting the Transformation of Scientific and Technological Achievements and other relevant provisions. The industrialized innovation achievements of foreign-funded R&D centers may apply for inclusion in the Shanghai Municipality Recommended Catalogue of Innovative Products, and those that are put on the market for the first time (including the first set of equipment, the first batch of new materials and the first version of software) may be purchased by the government for the first time in accordance with relevant provisions.

Article 18 (Intellectual Property Protection)

This Municipality protects the intellectual property rights of foreign-funded R&D centers according to law. Efforts shall be made to accelerate the construction of China (Shanghai) Intellectual Property Protection Center, and carry out one-stop comprehensive services integrating rapid patent examination, rapid confirmation of rights and rapid rights protection.

The authorized domestic and foreign invention patents of the foreign-funded R&D centers may receive financial support in accordance with the relevant provisions of this Municipality. Qualified foreign-funded R&D centers may apply for patent pilot demonstration units and enjoy relevant policies.

Article 19 (Financial Assistance)

Qualified global R&D centers may receive start-up and rental subsidies according to the relevant provisions on regional headquarters development special funds.

Article 20 (Tax Support)

In accordance with the relevant provisions of the State, qualified foreign-funded R&D centers shall be exempted from import duties, import value-added tax and consumption tax for importing scientific research and technological development supplies, and if they purchase domestic equipment, they will receive a full refund of value-added tax.

Article 21 (Government Support)

All district people’s governments, key functional areas and development zones may, in the light of the local actual circumstances, formulate policies and measures to support the development of foreign-funded R&D centers and create a business environment conducive to the development of foreign-funded R&D centers.

Article 22 (Reference Implementation)

Investors from Hong Kong, Macao and Taiwan setting up foreign-funded R&D centers in this Municipality shall be governed by reference to these Provisions.

Article 23 (Effective Date and Validity Period)

These Provisions shall be effective as of December 1, 2020 and be valid until November 30, 2025.