The Shanghai municipal government held its third “government-enterprise cooperation panel” on March 28, 2019, seeking suggestions from representatives of Japanese enterprises, chambers of commerce, and associations in Shanghai on how best to optimize its business environment.

Shanghai has long been a hot spot for Japanese-funded companies and is home to more than 10,000 Japanese enterprises. Participants expressed great concern for Shanghai’s business environment and were fully prepared to offer advice.

According to the chairman of the Shanghai Japanese Commerce & Industry Club, the club, with over 2,000 members, is the largest of its kind in overseas countries. The club has submitted a proposal covering over 100 items to the Shanghai government, taking into account the diverse needs of different Japanese enterprises.

Michiaki Oguri, chief representative of the Japan External Trade Organization (JETRO) China in Shanghai, said “China made a giant step forward by moving from 78th place to 46th place worldwide in terms of overall business environment, according to the World Bank’s report for 2018.” To prepare for the panel, JETRO conducted a questionnaire survey with a focus on tax payment and trade among the Japanese enterprises in Shanghai. The results indicated that Shanghai’s business environment has greatly improved.

Issues that most concern Japanese enterprises include residence permit applications, cash pooling, new personal income tax law, export tax rebate, and reduction of losses due to enterprise relocation.

Officials of relevant departments answered questions and introduced forthcoming policies which will soon be implemented by Shanghai and central governments.

Representatives also expressed hope for the efficient implementation of district governments, enhanced training for officials at service windows, a record of questions that cannot be answered on the spot, and the establishment of a closer government-enterprise relationship.

In 2018, Shanghai initiated the “government-enterprises cooperation panel” to help improve government services, optimize its business environment, and better serve foreign companies.

The government has held 10 panels and summits in 2018, with seven planned in 2019 for foreign-invested enterprises.