New measures to attract MNCs to Hongqiao

Updated: Aug 16, 2023 By Shi Jing in Shanghai Print
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An aerial view of the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone in Shanghai. [Photo by Gao Erqiang/China Daily]

The National Development and Reform Commission, China's economic planner, released 24 new measures on Wednesday that will help the Hongqiao International Opening-up Hub attract more multinational companies' regional headquarters, strengthen ties with neighboring cities to help advance the integrated development of the Yangtze River Delta region and further facilitate international trade.

The 7,000-square-meter hub, which connects parts of Shanghai and the provinces of Zhejiang and Jiangsu, is projected to explore a higher level of opening-up and reinforce international cooperation, according to the State Council's framework plan released in 2021.

Higher connectivity will be one aspect of the new measures. Test licenses and results for smart connected cars will be mutually recognized within the hub and the construction of cross-provincial and cross-municipal road test areas for such smart vehicles will be supported.

While Shanghai and Suzhou will be supported in expanding trial use of digital renminbi, more application scenarios should be explored and successful attempts should be exchanged between the two cities.

The Shanghai Hongqiao International Central Business District, the core area of the hub, should further consolidate its role as a center for high-end trade, services and exhibitions. To realize that goal, a pioneering zone for "Silk Road E-commerce" should be set up in the district to explore new business models.

Qualified multinational companies registered in the district will be supported in utilizing integrated capital pooling for the Chinese yuan and foreign currencies. Eligible companies will be allowed to purchase foreign exchanges within a designated amount. Multinational companies in China will be allowed to directly handle payment and receipt businesses both denominated in RMB and foreign currencies for its overseas member enterprises.

The purpose is to give more autonomy to companies in terms of capital exchange.

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