The Information Office of Shanghai Municipality held a press conference today (August 20) during which Chen Yin, Executive Vice Mayor and Director of Lingang New Area Administrative Committee introduced the relevant situations about the “Action Plan for Speeding up the Construction of Lingang New Area under the Guidance of Five Important Aspects (2020-2022)” (Action Plan). Zhu Zhisong, Deputy Secretary-General of the Shanghai Municipal Government and Executive Deputy Director of Lingang New Area Administrative Committee, Zhu Min, Deputy Director of the Municipal Development and Reform Commission, Shen Weihua, Deputy Director of the Municipal Commission of Commerce, Xu Jian, Deputy Director of the Municipal Planning and Natural Resources Bureau, and Liu Ping, Chief Engineer of the Municipal Commission of Economy and Informatization attended the press conference and jointly answered questions from reporters.

I. Relevant background, overall considerations and objectives and tasks

On November 3, 2019, when General Secretary Xi Jinping visited Shanghai, he put forward the key instructions in “five important aspects” on the Lingang New Area (an important base for gathering talent from home and abroad to carry out international innovation and collaboration; an important hub that coordinates onshore and offshore businesses; an important springboard for enterprises to go global and expand; an important channel for better use of two markets and two resources; and an important experimental field for participating in international economic governance). In order to implement the new requirements on “five important aspects”, promote the implementation of the overall plan, administrative methods, and special supporting policies for the Lingang New Area, accelerate the creation of a special economic function zone with more international market influence and competitiveness, as well as a modern new city featuring openness and innovation, smart ecology, industry-city integration, and livability, the CPC Shanghai Municipal Committee and the Municipal Government organized relevant departments to formulate the Action Plan, which was reviewed and approved by the CPC Shanghai Municipal Committee’s standing committee meeting and the Municipal Government’s executive meeting, and will be officially released for implementation. The Action Plan is a major measure to accelerate the construction of the Lingang New Area with the efforts of the whole city and create a “growth pole”, “engine” and “new highland” for the city’s economic development. It is the road map and task for the construction of the Lingang New Area from 2020 to 2022.

The Action Plan proposes that the overall goal of the Lingang New Area by 2022 is to initially form a basic framework in the “five important aspects”, initially establish a high-standard investment and trade liberalization facilitation system, initially reflect the comprehensive advantages of the core carrying area of “four functions” in Shanghai, and lay a solid foundation for the full completion of the “five important aspects” by 2035. First, the economic strength has been significantly enhanced. The average annual growth rate of the area’s value added reached 25%, the cumulative total industrial output value reached 600 billion yuan, the total import and export value exceeded 115 billion yuan, and the container throughput via Yangshan Port exceeded 23 million TEUs. Second, the quality of development has been significantly improved. Several 100 billion-yuan industrial clusters in the fields of smart cars, integrated circuits, high-end equipment, and biopharmaceuticals have been cultivated, and more than 1,500 new high-tech enterprises and innovative institutions of various types have been added. The area has also introduced and cultivated more than 20 headquarters-based institutions, and more than 200 financial and investment institutions of all kinds. The number of PCT international patent applications has exceeded 500. Third, the development environment has constantly been optimized. The area has added more than 20 new major science and technology platforms and carriers. The total funds as financial support to the real economy has exceeded 150 billion yuan. Cross-border financing for enterprises increased by over 50% per year. Centralized approval services can be 100% handled online, and the supporting project fees on water, electricity and gas to non-resident users are eliminated. Fourth, the city’s functions have been improved more quickly. The 5G network has basically achieved full coverage in the city, with deeper coverage in key areas. The bus network density has increased by 20%, and the bus stop coverage has increased by 20%, with the pilot program starting for driverless public transport. The total area of newly constructed housing hit 9 million square meters. Harmless disposal rate of household waste reached 100%. Education, health, elderly care and other community public service facilities are available within a 15-minute walk.

II. Main contents

The Action Plan is divided into 6 chapters, 14 focus areas and 42 specific measures, including four aspects:

1.Build an international innovation synergy highland and build the Lingang New Area into an important node of the global innovation-driven network. First, build an international innovation collaboration zone from a high starting point. The area will create a space carrier to enhance the ability to drive scientific and technological innovation, build a major scientific and technological innovation platform, build a vibrant innovation and entrepreneurial ecology, and comprehensively enhance the ability to protect intellectual property rights. Second, focus on enhancing the ability to lure talent from home and abroad. The area will create a preferred location for domestic talent in terms of innovation and entrepreneurship, and a destination for overseas talent with comprehensive talent services. The area will accelerate the implementation of the incentive policy to domestic high-end talent for direct economic contribution. The area will maximize the benefits of electronic port-visa policy, and accelerate the implementation of the subsidy policy for foreign talent in terms of the difference in individual income tax. Lingang New Area implements preferential house purchase policy for talent across the entire region.

2. Build the industrial cluster highland with international market competitiveness, and build new space, new momentum, and new pattern of high-quality development. First, create a world-class frontier industrial cluster. The area will strengthen cultivation, deepen external collaboration, and promote leapfrog growth of industrial scale and strength. For the qualified production and R&D enterprises in key fields and core links such as integrated circuits, artificial intelligence, biopharmaceuticals, and civil aviation, efforts will be made to ensure that they enjoy a reduced corporate income tax rate of 15% within 5 years from the date of establishment. The area will speed up the construction of special brand parks such as Oriental IC Hub, Life Blue Bay and Jumbo Jet Park, as well as China-Japan (Shanghai) Regional Development Cooperation Demonstration Zone and the gathering area of international economic organizations. Second, accelerate the development of onshore and offshore business. The area will build Yangshan Special Comprehensive Bonded Zone into a comprehensive bonded zone with the highest openness in China, vigorously develop headquarters economy, actively develop offshore trade, entrepot trade and services trade, build an offshore gathering center, and build high-level factor resource trading platforms such as Shanghai Natural Gas Pricing Center. The area will gear up the implementation of the special tax policies for service transactions between enterprises within the physical fence area and the tax policies suitable for overseas investment and offshore business development, while building Shanghai’s international service trade demonstration base. Third, increase support from the financial industry. The area will create a high-end financial resource allocation highland, promote financial resources to serve the real economy, and realize the agglomeration of cross-border financial services. The area will accelerate the construction of the modern service industry cluster around Dishui Lake. It will expand the pilot project of the cross-border capital pool that integrates domestic and foreign currencies, and establish a pilot zone of financial law in the Lingang New Area. Fourth, actively develop the high-end shipping services industry. Efforts will be made to improve the service capacity of the airport and seaport and enhance the high-end shipping service functions. The area will improve the relevant tax refund policies at the port of departure and the registration system for ships registered in “Yangshan Port of China”, and create a regional aviation headquarters base and an international hub for air express. Fifth, vigorously develop the digital economy. The area will speed up construction of an international data port and promote the online new economy brand. It will start construction of an “Information Flying Fish" global digital economy innovation island, step up efforts to develop driverless road test scenes with vehicle-road coordination, and build a globally leading and the country’s first-class industrial Internet R&D and transformation platform.

3. Build a modern new city with high quality of life and provide strong urban function support to the construction of “five important aspects”. First, speed up the construction of node-type and hub-type urban transportation system. The area will build an external rapid transit network, improve the collection and distribution facilities of multimodal transport, accelerate the improvement of multi-level backbone road network, and implement the strategy that gives priority to public transport. The area will build a “15, 30, 60, 100” mobility service circle (i.e. from Dishui Lake to Pudong hub, Longyang Road hub, Hongqiao hub and adjacent cities in Yangtze River Delta, it takes 15, 30, 60 and 100 minutes, respectively). Second, improve comprehensive infrastructure facilities. The area will promote construction of new information infrastructure and build a “1 + 2 + 6 + X” comprehensive energy service system. By 2022, a comprehensive energy management and control platform will be built to create an “integrated energy brain of a smart city.” A demonstration area for global communication network development will be built. Third, strive to optimize and beautify the ecological environment. The area will accelerate the integration of water, greenery, and forest, strengthen the construction of water supply and drainage infrastructure, and intensify environmental protection and remediation. It will build a unified management and control system within the area for collection and transportation of solid waste. Fourth, strive to improve public services. The area will accelerate the integrated development of business, culture, sports, and tourism, build a multi-level, full-coverage education system, and improve the capability of medical and health care services. Fifth, improve planning and land guarantee. The area will draft plans from a high starting point and with high standards, while using the land in a high-quality, high-performance way.

4. Strengthen organizational leadership and support to ensure the effective implementation of the Action Plan. First, strengthen Party building and organizational construction. The Lingang New Area will be better empowered with more authority in terms of independent development, independent reform, and independent innovation. Second, build a business environment that reflects the high quality of international economic governance. The area will continue to foster reforms to delegate power, streamline administration and optimize government services, and actively strive for a new round of policy and institutional innovation and breakthroughs. It will establish a one-stop international commercial dispute resolution mechanism and an international legal service center. The area will fully implement the “business-friendly policies version 3.0” in Shanghai, and build a “18 + n” special business environment evaluation system. It will improve the whole-process risk management system, and speed up the launch of the integrated information management service platform (version 2.0). It will continue to enhance stress tests of risks under an open economy and make new contributions to China’s all-round opening-up in the new era.