Shanghai launches ten major initiatives to optimize the business environment and help small and medium-sized enterprises tackle the challenges of the trade war.

In May 2025, the Shanghai Municipal Government launched the "Ten Major Breakthrough Initiatives" as an extension of the Business Environment Optimization 8.0 initiative to tackle the US-China tariff war and economic uncertainties. This policy focuses on reducing administrative intervention, improving regulatory transparency, and supporting small and medium-sized enterprises. It aims to ease the burden on businesses with measures like "no unnecessary interference" and "exemption from penalties for minor offenses," addressing the needs of foreign-invested enterprises and sustaining market vitality and institutional resilience.

"Ten Major Breakthrough Tasks": Aligning with International Standards, Focusing on Practical Results

At the beginning of 2025, the Shanghai Municipal Development and Reform Commission issued a notice on "Accelerating the Implementation of the 2025 Business Environment Optimization 'Ten Major Breakthrough Tasks'," as an extension of the Business Environment Optimization 8.0 Plan. The original plan included 58 tasks aimed at stabilizing employment, businesses, markets, and expectations. The newly added ten tasks clearly benchmark the World Bank's business environment assessment system, covering core areas such as administrative regulation, financing services, and intellectual property protection.

Gu Jun, Director of the Shanghai Development and Reform Commission, pointed out that these tasks will achieve specific results within 2025, emphasizing that "continuously enhancing development confidence" is the core goal of the policy. By improving regulatory rules and optimizing the public service system, Shanghai hopes to further shape a business environment with international competitiveness.

"Non-Interference" and "Unobtrusive Regulation": Institutional Innovation for Reducing Burden and Improving Efficiency

In terms of administrative regulation, Shanghai emphasizes the implementation of the "Non-Interference" and "Unobtrusive Regulation" dual-list approach. Gu Jun stated that this system will enhance the standardization of administrative inspections involving enterprises, achieving "fewer inspections with improved quality, minimizing disturbance to enterprises." Specific measures include promoting the "inspection QR code" system, achieving "no inspection without a code, mandatory code display during inspections, and post-inspection evaluation," fully implemented by the market regulation department.

The implementation of this system aims to address the long-standing issue of over-regulation faced by enterprises, improving operational efficiency, especially for small and micro enterprises, effectively reducing compliance costs and administrative interference.

Supporting Small and Medium Enterprises: Crucial for Stabilizing the Economic Foundation

Chen Yanfeng, Deputy Director of the Shanghai Development and Reform Commission, pointed out that Shanghai currently has over 3 million business entities, nearly 90% of which are small and micro enterprises and individual businesses. The survival and development of these entities in the current economic situation are crucial to stabilizing the economic foundation and maintaining employment.

Therefore, in the "Ten Major Breakthrough Tasks," Shanghai particularly emphasizes innovative financing solutions for small and medium enterprises, assisting them in solving financing difficulties and high financing costs through policy guidance and system innovation. Additionally, for street economy and roadside businesses, Zhang Yonggang, Director of the Shanghai Urban Management and Law Enforcement Bureau, stated that "minor penalty exemptions" and other inclusive and prudent regulatory measures will be promoted. In the past two years, this policy has handled 10,700 cases, mainly targeting construction enterprises and roadside businesses, significantly reducing their economic burden.

"Bustling Atmosphere" and Street Economy: Revitalizing Urban Vitality

To create urban economic vitality, Shanghai proposes a policy direction for developing a "bustling atmosphere," supporting the development of business environments in neighborhoods and streets. Specific measures include optimizing the approval process for outdoor dining and nighttime economic activities, promoting the construction of vibrant neighborhoods. Currently, several outdoor areas in Shanghai have opened night markets and bazaars, becoming new hotspots for citizens and tourists.

Zhang Yonggang pointed out that in the future, support for characteristic business activities will be increased, seeking a balance between the "bustling atmosphere" and urban environmental order, ensuring that urban governance and economic vitality go hand in hand.

Addressing the US-China Tariff War: Stabilizing Foreign Investment and Strengthening Compliance

In the context of the US-China tariff war, foreign enterprises face supply chain pressures and challenges in trade compliance. Wang Yejun, Legal Director of the Shanghai Foreign Investment Association, stated that some foreign enterprises have reported related difficulties, and the association has fed back the information to government departments, receiving positive responses. She noted that some enterprises require guidance in trade compliance, and the government and business associations are actively providing guidance and support.

This response reflects Shanghai's efforts to maintain the confidence and operational stability of foreign enterprises through institutional mechanisms and policy tools in the face of international trade frictions.

Shanghai launches ten major initiatives to optimize the business environment and help small and medium-sized enterprises tackle the challenges of the trade war.

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