Shanghai is accelerating its ambition to become a leading global hub for AI and the digital economy , supported by a new wave of policies focused on:
Industrial-scale AI deployment
Cross-border data flows
Services sector liberalisation
For international businesses, these developments signal new opportunities for innovation, regional operations and digital transformation.
1. From AI experimentation to industrial adoption
Shanghai is moving beyond pilot projects towards large-scale, scenario-driven AI adoption, supported by:
A target of accelerating AI adoption across 3,000 enterprises
More than 100 real-world AI application scenarios
Subsidies for computing power and data resources
The message is clear: AI is rapidly becoming embedded in core business operations rather than remaining within innovation or research functions.
2. A maturing data governance framework
Through initiatives such as “data processing inbound” and alignment with international standards including DEPA, CPTPP, Shanghai is strengthening its position as a digital trade hub by:
Enabling cross-border data-driven business models
Building trusted data circulation systems
Facilitating international digital trade and collaboration
3. Balancing innovation with compliance
From AI healthcare applications to intelligent agents, policy support is accompanied by:
Enhanced regulatory oversight
For multinational companies, these developments represent more than regulatory change; they signal a strategic shift in how China can contribute to global business operations.
Reposition China as an innovation hub
Beyond market access, Shanghai increasingly supports AI research and development, model training and regional engineering centers, creating new opportunities for innovation-led investment.
Unlock new cross-border operating models
China operations can evolve beyond traditional market-serving functions into:
Regional data hubs
AI development centers
Analytics and innovation centers supporting both China and international markets.
Capture first-mover advantages
Pilot zones such as Lingang continue to provide opportunities for businesses to test innovative AI and data-driven business models within progressive regulatory environments.
Strengthen compliance capabilities
As regulatory expectations evolve, success will increasingly depend on robust data governance frameworks, effective compliance processes and proactive AI risk management.
Shanghai’s latest policies reflect a broader shift from technology enablement towards ecosystem orchestration.
For forward-looking organisations, the opportunity lies in adopting an “In China, for Global” strategy—leveraging China’s scale, digital ecosystem and policy support to drive innovation, strengthen competitiveness and support global growth.
If you would like to explore how these developments may impact your China strategy or operating model, please contact our team.
Accounting and Taxation
Announcement of the General Administration of Customs on Implementing Simplified Reassessment for Advanced Certified Enterprises
In accordance with the Measures of the Customs of the People’s Republic of China for the Credit Administration of Registration and Filing of Enterprises (Order No. 282 of the General Administration of Customs), the General Administration of Customs has decided to streamline the reassessment procedures for advanced certified enterprises that meet the prescribed conditions (hereinafter referred to as “simplified reassessment”). The relevant matters are announced as follows:
When conducting reassessment on advanced certified enterprises whose credit evaluation status in the “Customs Enterprise Credit Management System” (hereinafter referred to as the “System”) is “Excellent” or “Good”, Customs may apply simplified reassessment. Simplified reassessment shall not apply under any of the following circumstances:
The enterprise is under audit by Customs, except where the audit is conducted due to voluntary disclosure of non-compliance with Customs supervision provisions;
The enterprise is subject to risk-based verification by Customs, except where such verification is conducted under the “enterprise self-inspection result recognition model”;
The enterprise is under criminal or administrative investigation by Customs on suspicion of violations of law, except where such investigations are conducted under simplified procedures;
When Customs conducts simplified reassessment on an advanced certified enterprise with an “Excellent” rating in the System, no on-site reassessment will be conducted, and approval will be granted directly.
For enterprises with a “Good” rating, Customs will conduct on-site reassessment only on criteria affecting the enterprise’s credit evaluation status and items previously rated as “Basically Compliant”, and will determine the outcome based on the reassessment results.
If, during the simplified reassessment process, Customs determines that the enterprise no longer meets the required conditions, or if significant changes in operations arise that may affect the reassessment outcome, the simplified reassessment shall be terminated immediately.
In such cases, standard reassessment procedures will apply.
Source from:
Wolters Kluwer
海关总署关于实施高级认证企业简易复核的公告|法规|威科先行·法律信息库
Announcement of the State Administration of Taxation (“SAT”) on Matters Concerning Value-Added Tax (“VAT”) Collection and Administration, Including Threshold Standards
In accordance with the Announcement of the Ministry of Finance and the State Administration of Taxation on Matters Concerning the Alignment of VAT Preferential Policies Following the Implementation of the VAT Law (No. 10 [2026], hereinafter referred to as Announcement No. 10), this Announcement clarifies the relevant collection and administration matters.
Key points:
Small-scale taxpayers with taxable sales below the threshold may waive the exemption for all or part of their taxable transactions and issue VAT special invoices.
For natural person:
The monthly threshold applies if they receive interest from certain bonds (issued on or after 8 Aug 2025). For lump sum interest, taxable sales are calculated based on the monthly average over the accrual period.
For lump sum rental income from real estate, taxable sales are calculated based on the average monthly rent over the lease term.
For platform workers, VAT declarations shall be handled by the platform enterprises on their behalf.
For scrap product sellers using “reverse invoicing”, VAT declarations shall be handled by the resource recycling enterprises.
For Insurance agents, securities brokers, and credit card/tourism agents, tax declarations shall be handled by the enterprises they serve.
Other circumstances as specified by the SAT.
For natural person not covered above: taxation is assessed on a per-transaction basis. Where taxable sales reach the threshold:
If an application is made for a proxy issued invoice, the tax authority will collect VAT at that time.
If a withholding agent exists, the agent shall declare and pay the tax.
For other taxable transactions in the same year without VAT has not yet been paid, the taxpayer must file and settle the tax by 30 June of the following year.
Small scale taxpayers eligible for the 1% reduced levy rate (Announcement No. 10, Article 3(3)(6)) must issue invoices at the 1% rate. They may waive the reduced rate for all or part of their transactions and issue special VAT special invoices instead.
Source from:
Wolters Kluwer
国家税务总局关于起征点标准等增值税征管事项的公告|法规|威科先行·财税信息库
Implementing Opinions of the General Offices of the Ministry of Human Resources and Social Security, the Ministry of Housing and Urban-Rural Development, and the National Healthcare Security Administration on Efficiently Completing the "One-Stop Service" for Employee Recruitment as a Single Integrated Task
On Apr 1, 2026, the General Office of the Ministry of Human Resources and Social Security, the General Office of the Ministry of Housing and Urban-Rural Development, and the Office of the National Medical Insurance Bureau issued the implementing opinions on efficiently handling the “one-stop service" process for employee recruitment.
It is clearly stipulated that matters such as employment registration, receipt of personnel files for mobile personnel, labour employment registration, registration for employees' social insurance, application for social security cards, establishment of individual housing provident fund accounts, and registration for employees' medical insurance should be integrated and processed collectively. Uniform application requirements, documentation, procedures and timelines should be established, with self-service applications, and parallel processing to be implemented.
The document also calls for the reconfiguration of the entire "application - acceptance - review - processing - feedback" chain, the simplification of supporting documents and intermediary procedures, the expansion of online and offline service channels, the establishment of acceptance zones and integrated service counters, the promotion of data sharing, intelligent guidance, intelligent pre-approval and security protection, as well as a clear delineation of responsibilities among the human resources and social security authorities, the housing and urban-rural development authorities and the healthcare security authorities.
Corporate Governance
Outline of the 15th Five-Year Plan for National Economic and Social Development of the People's Republic of China
On 13 March 2026, the full version of the Outline of the People’s Republic of China’s 15th Five-Year Plan for National Economic and Social Development (2026–2030) was released. The Outline states that during the 2026-2030 development period, China will continue to optimise the business environment, expand institutional opening-up, further shorten the negative list for foreign investment access, and promote alignment with international rules on cross-border data flows and high-standard economic and trade agreements.