The Information Office of the Shanghai Municipal People's Government held a news conference on Aug 30, where Chen Yin, director of the Lin-gang Special Area Administration, gave an introduction to the newly released Opinions on the Implementation of Preferential Policies to Boost High-quality Development of Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone (FTZ).

The launch of Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone is a strategic mission assigned to Shanghai by the Central Committee of the Communist Party of China.

Lin-gang is required to be built into a special economic zone that has more international influence.

It is an important carrier for Shanghai to further boost reform and opening-up as well as innovation-driven growth.

Creating strategic space for Shanghai in its future development, Lin-gang has special missions to accelerate all-round and high-level opening-up. Shanghai has issued Opinions on the Implementation of Preferential Policies to Boost High-quality Development of Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone (referred to as "Opinions" hereafter) to carry out the Central Committee's decision with strengthening efforts in core areas and accelerating the new area's high-quality growth with the city's full capacity.

I. General considerations of the Opinions

First, the "Opinion" is to implement the national strategy, and the city should have more decision-making powers in detailed policies. The Opinions give support to urgent policies that the special area needs to create a policy framework together with the General Plan, which has laid a foundation for policies and mechanisms for the area.

Second, it is to stick to the Three Priorities and represents special support. In principle, major reform initiatives will be trialed in Lin-gang as a priority, and policies to support Pudong New Area in its further reform and opening-up will be implemented in Lin-gang as a priority, and major projects, R&D platforms and infrastructure construction that fit into the growth of Lin-gang will be placed in the special area as a priority. Meanwhile, future policies released by Shanghai that give more preferential support to businesses and talents will be implemented in Lin-gang on the principle of "choosing the best policies".

Third, it will focus on development priorities and reflect orientation. It is to focus on turning the new area into a special economic function zone with strong international market influence and competitiveness, and building a new modern city with innovation, intelligent ecology, integration of city and industries, and livability. Upgrading the industrial level of the area, attracting high-end talent and improving urban services, the Opinions will promote the "two agglomeration and one integration," which is designed to strengthen the agglomeration of the special area's open economy, create a highland of industries with core competitiveness, accelerate the gathering of talents at home and abroad in accordance with industrial development, and create a highland for talents with innovative vitality, promote the integration of industries and city, continuously enrich the service functions of cities, and create a highland of quality life.

II. Main content of the Opinions

The Opinions' focus on management authority, professional talent, finance and taxation, land planning, industry development, housing security and infrastructure, among others, is shaping 50 measures. These policies are in line with the open system and the special policies given to the special area by the central government, turning the new FTZ into the "area with the most concentrated resources, the most complete systems, and the most active market players".

(1) Giving the new FTZ greater rights to reform

Support the new FTZ area to set the highest standards, to boldly try, experiment, reform and formulate three policies in pilot implementation, policy support, and empowerment.

(2) Creating a more attractive development environment for talents

It will focus on attracting talent from home and abroad, and implement a more active, open and targeted policy to "attract, retain and give full play to people" in the new area. There are 12 policies, including six for domestic and international talents. Policies for domestic talents focus on hukou (permanent residence) support and the cultivation of talents. Policies for international talents focus on creating a convenient environment for foreign professionals to work in the special area.

(3) Strengthening support through fiscal and taxation policies

According to the principle of "local financial resources retention and urban special support", the local income generated by the FTZ new area within five years will be invested back into the zone. Shanghai will use fiscal funds, taxation, finance and social investment policies to provide financial support for the development of the new area.

(4) Increasing support for land policy

Based on land planning, the city will optimize the spatial pattern of the special area and promote the efficient allocation of resources. Five policies have been formulated mainly on land planning, optimization of resource indicators, improvement of floor area ratio, and improvement of the platform's innovative service capabilities.

(5) Promoting the development of high-end industrial clusters

Shanghai will focus on the overall positioning of the FTZ new area with innovation taking a leading role, build world-class, cutting-edge industrial clusters and enhance scientific and technological innovation and industrial integration capabilities. The city has worked out six policies covering major projects and platforms, a new generation of information infrastructure layout, industrial internet construction, opening of application scenarios, high-tech enterprise certification and patent services.

(6) Improving housing guarantees for talents

Based on a market-oriented approach, the city will stick to the central government call that "houses are built for accommodation, not for speculation" and "implementing differentiated policies in different cities", establish a regional housing system that places equal importance on sales and leasing with multiple suppliers and multichannel guarantees. The city has introduced six policies covering optimized home purchases and housing guarantee policies to provide talents in the FTZ new area with a stable accommodation environment.

(7) Building a convenient transport network

The city has introduced five policies on the building of an integrated transport system that is efficient, green, accessible and manageable.

(8) Enhancing urban service functions

Shanghai will stick to its people-oriented practice to better integrate its industrial and urban development, continue to improve its service functions, create high-quality lives for its residents, and build itself into a new generation of city that is suitable for both living and working. It has developed five policies covering optimizing education and medical resources, promoting cultural and leisure activities, increasing commercial outlets, creating a green and ecological environment and strengthening refined urban management.

III. Next steps

With the introduction of strongly supportive and systematic policies, Shanghai aims to build the FTZ new area into a new benchmark in reform and opening-up.

For the next step, first we will focus on implementation. These supportive policies shall be implemented within the jurisdiction of the Lin-gang Special Area Administration. If there are clear provisions in the overall plan, then they shall be implemented in accordance with relevant regulations. The administration will be mainly responsible for the implementation of the supportive policies while various departments should actively cooperate. In principle, it is necessary to fully implement these policies in the area with no outside interference.

Second, the city is to improve the efficiency of implementation. About 10 of the 50 policies require further detailed rules for implementation, such as special purpose development funds and tax support. Relevant departments will study and formulate relevant implementation rules as fast as possible so that enterprises can fully benefit from the supportive policies in a timely manner.

Third, Shanghai is to track the impact of policies and make dynamic assessments. In the future, new policies launched by the municipal government will be generally applied in the FTZ new area and, at the same time, policy evaluation will be strengthened and non-stop efforts will be made for continuous improvement.