The next step is to strive for more reform and innovation measures to be implemented, and the Municipal People's Congress will conduct law enforcement inspections: the ten-year rules of the establishment of the Shanghai Pilot Free Trade Zone | opening up to the outside world | law enforcement inspections

The Regulations on China's Pilot Free Trade Zones are the first local regulation on pilot free trade zones in China. The Regulations of the China Pilot Free Trade Zone Lingang New Area are the first comprehensive regulation of the Lingang New Area. This year marks the 10th anniversary of the establishment of the Shanghai Pilot Free Trade Zone. In order to deepen integrated reform and institutional opening up, and promote the construction of the pilot free trade zone and the Lingang New Area to a new level, the Standing Committee of the Municipal People's Congress organized a law enforcement inspection of the two regulations. Yesterday, the fourth meeting of the 16th Standing Committee of the Municipal People's Congress reviewed the report on inspecting the implementation of these two regulations in the city.

The report points out that under the guidance of regulations, the Shanghai Pilot Free Trade Zone and the Lingang New Area have basically formed an investment management model that is in line with international norms, established a trade regulatory system that complies with high standard trade facilitation rules, and continued to promote high-level opening up in the financial sector and optimize the rule of law, marketization, and international business environment. At present, a large amount of experience in the pilot reform of free trade zones replicated and promoted at the national level comes from Shanghai's pioneering and pioneering efforts. The Lingang New Area is benchmarking against the most competitive free trade park in the international market, focusing on institutional innovation in key areas and forming a number of innovative cases. According to the authorization of the Standing Committee of the National People's Congress, the Standing Committee of the Shanghai Municipal People's Congress has formulated 16 regulations in Pudong New Area, including the "Market Entity Registration Confirmation System," "Cultural Relics and Art Trading," and "Innovative Applications of Intelligent Connected Vehicles without Drivers." The Pudong New Area government has also introduced 16 management measures, including "Commercial Mediation," and "Special Industrial Parks.".

Law enforcement inspections have found that Shanghai has taken the lead in implementing the reform of the overseas investment approval system nationwide, establishing and improving overseas investment service promotion platforms, forming the Shanghai Foreign Investment Cooperation Professional Service Alliance, gathering various international professional service resources such as law, accounting, evaluation, taxation, financing, management consulting, insurance, brokerage, etc., to provide resource docking services for enterprises, and the "going out" service guarantee system is becoming increasingly perfect. These measures have had a significant effect on promoting overseas investment. The Shanghai Pilot Free Trade Zone has become the main gathering area for "going global" enterprises, and the Lingang New Area has become an important springboard for enterprises to "go global".

"At present, the reform has entered a period of tackling difficulties and deep waters, and the remaining are hard bones that are difficult to gnaw on," said Zong Ming, leader of the Law Enforcement Inspection Group of the Standing Committee of the Municipal People's Congress and Deputy Director of the Standing Committee of the Municipal People's Congress. The law enforcement inspection report suggests that the pilot free trade zone and the Lingang New Area need to further increase their efforts to actively seek support from the national level. At the same time, the sense of gain of market entities needs to be further improved.

In the law enforcement inspection, some enterprises reported that the current security assessment process for cross-border data flow is relatively slow, and there is a lack of scenarios and rules for international economic and trade exchanges and exchanges and cooperation, resulting in fragmentation and case-by-case data flow, facing difficulties such as "data that can be exported is not easy to use, and available data is difficult to export. Some enterprises have pointed out that although the regulations provide for an inclusive and prudential supervision system, the lack of implementable, judgmental and operable institutional arrangements hinders innovation to a certain extent. Some enterprises have proposed that market entities are more inclined to conduct business in countries and regions with more open ports, more favorable tax systems, and more convenient capital entry and exit. It is recommended to accumulate and share fault-tolerant cases, encourage early trials, and strive to try a feasible path as soon as possible. In terms of tax policy, at present, only the four key industrial enterprises in the new Lingang area, such as integrated circuits, artificial intelligence, biomedicine and civil aviation, enjoy a preferential corporate income tax rate of 15%, while the income tax rate of other enterprises is 25%, which is significantly higher than that of Singapore's 17%. In terms of personal income tax, although there are special policies for the introduction of talents, there is still a lack of open and long-term institutional arrangements.

In addition, the risk pressure testing of an open economy and the legal guarantee for reform and innovation need to be further strengthened and improved. For example, the offshore account system in this city still has many restrictions on investors, the scale of the offshore bond market is relatively small, and the financial elements that offshore funds can participate in are relatively limited. It is necessary to focus on the development needs of offshore trade, expand the pilot of free trade account offshore economic and trade business, and gradually explore the construction of an offshore financial system that matches the international financial center.

The law enforcement inspection team stated that the next step is to actively serve the national strategy and strive for more reform and innovation measures to be implemented in the Shanghai Pilot Free Trade Zone and the Lingang New Area; Actively conducting various stress tests in accordance with international high standard economic and trade rules; Fully consider the systematicity, operability, and fault tolerance of policy design, and continuously improve the level of opening up to the outside world; To strengthen the guarantee of the rule of law, it is necessary to make good use of the central legislative authorization, roll out new regulations and management measures in Pudong New Area, assist in the high-quality development of Shanghai Pilot Free Trade Zone and Lingang New Area, steadily expand institutional opening up of rules, regulations, management, standards, etc., promote larger scope, wider fields, and deeper levels of opening up to the outside world, and create a new highland for reform and opening up in the new era.