Shanghai issues plan to boost foreign R&D centers with targeted policies

Shanghai's Municipal Government released a plan to enhance and boost the development of foreign research and development (R&D) centers on Wednesday from nine aspects, including relaxed regulation of cross border outflow of non-listed or non- categorized data, with the aim to build the city into an international sci-tech innovation hub.

The plan, which will take effect on Friday, will attract and support foreign R&D centers to form clusters and upgrade capability, amid a national campaign to improve business climate for foreign companies and encouragement policy measures that support foreign companies to set up R&D centers in China.

Eligible foreign-funded R&D centers will benefit from a series of policy support measures, including customs clearance facilitation for cross-border R&D materials, allowing foreign-funded R&D centers to openly accessing services from common technology R&D platforms and sci-tech information according to rules as well as funding support.

Foreign-funded R&D centers will be supported to engage cooperation and high-risk research projects with the municipality's sci-tech institutions and enterprises, according to a post on the official WeChat of the municipality on Wednesday.

The plan will also support the lawful cross border flow of R&D data, improve the level of protection of intelligent property rights (IPRs) and elevate support in talent acquisition and development.

Foreign-funded R&D centers will be supported to set up an open innovation platform, conduct cross border incubator service and build proof-of-concept center. They are also encouraged to conduct technological research in joint efforts with various Chinese innovative entities, co-build labs, industrial colleges and training bases.

The plan calls for facilitation of cross border data flow under the premise of relevant law and regulations. Foreign R&D centers are not required to file for declaration for outflow of data not subject to regulation under the key list and catalogue in the data classification and hierarchical protection scheme of the Shanghai pilot free trade zone.

Shanghai will conduct biosafety risk assessment for imported animal and plant genetically modified organisms and biological materials, and the eligible imports for R&D purposes will enjoy customs facilitation.

In 2023, China's scientific and technological R&D investment surpassed 3.3 trillion yuan ($458.5 billion), up 8.1 percent year-on-year.

A number of foreign companies have increased their number of R&D centers in China.

US-based Apple announced on Tuesday a plan to open a new research and development (R&D) center in Shenzhen city, South China's Guangdong Province while upgrade its Shanghai R&D center to support product manufacturing.

A number of foreign-backed companies in China, from Apple to German automotive supplier Bosch, are announcing plans to expand their China presence recently, as China's fast growing vast market provides a platform for strong business performance.