E. China’s Shanghai approves regulations on foreign investment to boost dev’t of foreign firms

East China's Shanghai approved regulations on foreign investment last Friday, a supplement of the country's foreign investment law, which will come into effect on November 1.

The regulations aim to boost development of multinational headquarters and foreign-funded research centers by offering them supporting policies and facilitation measures.

The regulations highlight further opening-up, optimized procedures of the reporting mechanism and one-stop service system for major foreign-funded projects.

According to the regulations, local commerce authorities should take the lead to coordinate the cross-department or cross-regional affairs put forward by foreign enterprises and deliver feedback to them in a timely manner.

In addition, the regulations clarify that foreign firms can only submit necessary information in their investment report. The information that can be obtained by government departments through sharing platforms is not required to be submitted.

"At the same time, we will set up green channels and coordinate such affairs as market access, planning, land use, environmental protection, energy use, construction and foreign exchange," said Zhang Li, director of the open economy development division of Shanghai Municipal Development & Reform Commission.

Foreign enterprises have been important drivers for the city's economic growth in recent years. According to official statistics, around 60,000 foreign-funded enterprises in Shanghai have contributed more than a quarter of the city's regional GDP, over a third of its total tax revenue, about two-thirds of its foreign trade volume and industrial output generated by enterprises with annual sales revenue over 20 million yuan and around one-fifth of the city's total employment.