To boost its economy after a series of Covid-19 control measures, Shanghai’s municipal government has launched an action plan to speed up economic recovery.
Composed of 50 policies and measures, the city’s approval system for production resumption will now be abandoned, immediately expediting start-up time for companies in case another lockdown is enacted.
The city is promoting work resumption in all sectors by expanding the scope of subsidies for enterprises’ epidemic prevention and disinfection, stabilizing industrial and supply chains in the Yangtze River Delta, and smoothing domestic and international logistics and transportation channels.
Additionally, it will reduce rent, property tax, and urban land use tax for qualified enterprises. And will grant subsidies for non-residents on water, electricity, and natural gas fees. China says the measures are being taken to stabilise foreign capital, encourage consumption, and expand investment.
Foreign firms will be given additional support, with designated officers to aid work resumption of key foreign-funded enterprises, and will be launching an online service system for major foreign-funded projects.
It will start the application process for special funds to develop the regional headquarters of multinational corporations in Shanghai ahead of schedule in 2022.
The city will gradually reduce purchase tax on selected passenger vehicles, provide subsidies to replace cars with EVs, and support large commercial enterprises and e-commerce platforms with consumption coupons.
Shanghai has also vowed to promote the reconstruction of some old areas and support the scale expansion of corporate bond issuances to expand investment.
