On January 16, 2025, the General Office of the Shanghai Municipal People’s Government released the Implementation Plan for Promoting the High-Quality Development of Digital Trade and Service Trade in Shanghai (the “Implementation Plan”). This strategic blueprint aims to establish Shanghai as a global hub for digital trade, which includes digital products, and technology-driven trade, as well as service trade, covering sectors such as finance, insurance, logistics, and cultural services. With a strong focus on reform, innovation, and the opening of key sectors, the Implementation Plan sets out a series of priorities and actionable steps to achieve these goals by 2029.
Key Areas of Focus
The Implementation Plan introduces a series of initiatives to drive the high-quality development of digital and service trade in Shanghai. Key policy measures include:
- Expansion of Digital Delivery Services: Shanghai is set to ramp up its online services by leveraging the strengths of key areas like Lingang New Area and Pudong New District. The city will open up value-added telecom services, such as internet access, online data processing, and information protection services, to foreign investment. This initiative aims to attract foreign companies to establish wholly-owned internet data centers, and content distribution networks. In addition to boosting digital services, Shanghai will launch an annual program to recognize and promote the city’s top cultural trade brands. Additionally, the city will support overseas trials of games and films during international gaming and film festivals, such as the Shanghai International Film Festival and major e-sports events. On top of that, the city aims to expand high-end outsourcing services, especially in biopharmaceutical R&D, while pushing for deeper integration of digital technologies and industries. This includes setting up international cloud platforms and strengthening collaboration in AI and data product intellectual property.
- Growth in Cross-Border E-Commerce: The Implementation Plan aims to optimize the regulatory framework for air and sea transportation of cross-border e-commerce goods. It also seeks to strengthen financial support by innovating credit insurance products and simplifying foreign exchange procedures for small and micro enterprises. Furthermore, the plan promotes the expansion of cross-border e-commerce imports by encouraging foreign e-commerce platforms to set up regional headquarters in Shanghai, coordinating warehousing and shipping within customs special supervision areas, and refining return processes for direct-purchase imports.
- Advancements in Digital Infrastructure: Shanghai is gearing up to invest heavily in high-performance computing and next-generation networks. The city is focusing on expanding 5G and fiber-optic networks, building state-of-the-art cloud computing centers, and developing blockchain infrastructure. These efforts will also fuel the growth of the National (Shanghai) Internet Exchange Center and dedicated international data channels, significantly boosting the city’s communication infrastructure.
Strategic Goals and Support for Businesses
Under the Implementation Plan, Shanghai has laid out two key goals to hit by 2029:
- Service trade imports and exports are expected to hit $260 billion.
- Digital delivery services trade is projected to make up $130 billion, accounting for half of the total service trade.
The Implementation Plan outlines specific measures to foster collaboration between local and international businesses, further cementing Shanghai’s position as a global hub for digital and service trade. These measures create significant opportunities for companies looking to enter or expand in the Chinese market, as well as those seeking to strengthen international partnerships.
This initiative marks a pivotal step in establishing Shanghai as a global leader in digital and service trade. It provides businesses in digital technology, e-commerce, and services sectors with a strategic gateway to tap into China’s rapidly growing market.
