（May 30, 2005）

SMPG G〔2005〕No. 16

Attention: all District and County People’s Governments, and all relevant Commissions, Offices and Bureaus (Administrations) of the Municipal People’s Government:

In order to conscientiously carry out the“Suggestions of the State Council on Encouraging, Supporting and Guiding the Development of the Non-public Sector of Economy Including Individual Sector and Private Sector”(SC GO [2005] No.3, hereinafter referred to as“Suggestions”), we hereby put forward the following implementation suggestions:

I. Fully Recognizing the Important Significance of Accelerating the Development of the Non-Public Sector of Economy

1. Grasping the importance of accelerating the development of the non-public sector of economy

Shanghai is now at the critical moment of deepening the reform, accelerating the adjustment of economic structure and realizing the sustainable development in an all-round and coordinated way. Carrying out the“Suggestions”and accelerating the development of the non-public sector of economy play a very important role in cultivating and stimulating the vitality of economy and the capability of innovation, fully putting into effect the main strategy of“Rejuvenating the city through science and education”, and raising the international competitive power of the Shanghai; in optimizing the structure of ownership system and economic systems, speeding up the process of marketization, and improving the economic systems of the socialist market; and in adhering to being people-oriented, encouraging the pioneering spirit and promoting employment and raising the living quality of the people.

2. Defining the guiding thought in accelerating the development of the non-public sector of economy

Taking the Theory of Dun Xiaoping and the important thought of“Three Represents”as guide, the scientific viewpoint of development as commanding orientation, and the building of a harmonious socialist society as target, and proceeding from the strategic height of national development, the policies and measures proposed in the“Suggestions”shall be carried out in an all-round way to promote the healthy development of the non-public sector of economy, including individual sector and private sector in Shanghai. The essential train of thought is“equal treatment, open fields, industrial guidance, structural adjustment and innovative service”. Reform shall be deepened to resolutely break through all thoughts and ideas obstructing the development of the non-public sector of the economy, change the practice and provisions restraining the development of the non-public sector of economy, and do away with all institutional drawbacks affecting the development of the non-public sector of economy. The weak links in the development of the non-public sector of economy shall be grasped to solve the key problems affecting the development of the non-public sector of economy with efforts, to actively explore the development model of the non-public sector of economy meeting the requirements of Shanghai’s function and industrial characteristics, to further optimize the structure of the non-public sector of economy and to raise its innovative capability and competitive power, and to enhance the vitality of the non-public sector of economy as a whole, thus form a pattern of diversified ownership systems jointly propelling the coordinated development of the economic society in Shanghai, and promoting the radical transformation of the growth pattern of Shanghai’s economy and urban development model.

II. Practicing Equal Access and Fair Treatment

3. Practicing equal market access

The principle of“equal access and fair treatment”raised in the“Suggestions”shall be carried out, the policy provisions restraining the development of the non-public sector of economy shall be sorted out and revised as soon as possible, and equal conditions for market access shall be applied to enterprises of different ownership. Where the operators of projects, including the investment, construction and operational projects in the field of infrastructure and municipal public utilities, the operational projects in the field of culture, education, public health and sports, and the projects involving the control of amount (quota) as well can be chosen through public biddings, the principle of“justice, fairness and openness”shall be followed in implementing the system of public bidding for projects. For the projects of infrastructure and public utility that involve the development and utilization of important resources and need unified planning and layout, the investment subjects shall be chosen through public biddings to be made open to the society after the construction planning is determined. All projects involving the administration of qualification and endowments, the administration of regional planning and pre-administrative approval, it is necessary to establish the unified administration norms, open the administration procedures to the public and practise transparent and normalized administration, according to the“Law of the People’s Republic of China on Administrative Licenses”, so as to build a fair competition platform for the development of the non-public sector of economy.

4. Practicing equal policy treatment

Enterprises of different ownership shall be equally treated without discrimination in terms of policies. Enterprises of non-public ownership shall enjoy the same policy treatment as enterprises of other ownership in terms of registration of enterprises, application for placing project on file, investment and financing, taxation and credit, land use, financial discount, government procurement, assessment of professional titles, issuance of accreditation of qualification, introduction of talents, permits and license, charging standards and so on. For enterprises of non-public ownership which acquire and purchase State-owned enterprises, participate in their separation to undertake the social function and the restructuring of auxiliary lines, the corresponding policy on the reform of State-owned enterprises shall be implemented by reference, in terms of disposal of assets, settlement of debts, placement of employees, social security, land use, collection and payment of taxes and administrative charges and so on. The non-public capital that is invested in the industries encouraged and supported by the State and this Municipality and in environmental protection projects shall, in terms of the government’s purchase of public welfare services and the government’s arrangements for financial support and subsidies, enjoy the same policy treatment as the enterprises of other of ownerships. In giving impetus to the strategy of“introducing from abroad and going abroad”, the enterprises of non-public ownership shall, in terms of the administration of funds and foreign exchange, the right to handle imports and exports, etc., and other related aspects, also enjoy the same policy treatment as the enterprises of other ownership. The scientific and technological type of enterprises of non-public ownership shall, in terms of supporting technical innovation and promoting the industrialization of science and technology enjoy the same policy treatment as the enterprises of other ownerships as well.

III. Opening Wider the Market of the Non-Public Capital

5. Further extending the field access for the non-public capital

The non-public capital is allowed to enter all trades and fields that are not forbidden by laws and regulations. All investment trades and fields, except those explicitly restrained by the State, shall be open to the non-public capital at home according to the same conditions and policies as those applying to the national capital and the foreign capital, and the restriction on the proportion of stock ownership shall be relaxed. The non-public capital is allowed to enter the monopolized trades, the fields of public utility and infrastructure, the field of social undertakings, the fields of financial services and the construction of the science and technology industry for national defense, and the enterprises of non-public ownership shall be encouraged to participate in the development of the high technology for both military and civilian use and industrialization.

6. Deepening reform and constantly raising the extent of market opening

The monopolized industry shall accelerate its pace of reform and introduce the market competitive mechanism. For the natural monopoly business in the monopolized industry, the multiple investment subject shall be actively pushed on, and the non-public capital may gain access by means of share-participation, etc.; and for other business, the non-public capital may gain access by means of sole investment, joint ventures, cooperative business and project financing. The boundaries of regions, systems of ownership, domestic and foreign capital and trade monopoly shall be broken up, and the fields of infrastructure, municipal public utility and commercial social undertakings of culture, education, public health, sports and so on shall be opened. Under the premise of observing the related national policies and regulations and, of effectively guarding against financial risks, the non-public capital is allowed to participate in making investment in different financial institutions and financial intermediary organizations.

IV. Encouraging the Development of the Scientific and Technological Type Enterprises of Non-Public Ownership and Promoting Innovation of Science and Technology

7. Actively developing the scientific and technological type enterprises of non-public ownership

The non-public capital shall be encouraged to establish scientific and technological type enterprises, so as to push forward the construction of two big platforms for cooperation in multiple investment and financing and transfer of technology, and to accelerate the promotion of transformation of various kinds of scientific and technological achievements, and the development of high-tech enterprises. The construction of the incubating bases of enterprises shall be strengthened, and the conditions for the establishment of incubating service by scientific and technological type enterprises of non-public ownership shall be improved, so as to realize that“incubating small enterprises”and“supporting big enterprises”are simultaneously practised to support the development of the of scientific and technological type enterprises of non-public ownership at all levels. Cooperation in production, study and research among the enterprises of non-public ownership, between the enterprises of non-public ownership and those of public ownership and between all universities and scientific research institutes shall be promoted, and all types of enterprises shall be encouraged to establish the cooperative alliance of various forms in science and technology, and research and development. The enterprises of non-public ownership and the non-public capital that possess conditions shall be supported to independently establish scientific research and development organizations and to participate in the restructuring of State-owned scientific research institutes. According to the“Suggestions on Deepening the Reform of Property Right System in the Restructured Scientific Research Institutes in This Municipality”(SMPG GO G [2005] No. 1) made by the four departments including the Municipal Development and Reform Commission and transmitted by the General Office of the Municipal People’s Government, the reform of the property right system in restructured scientific research institutes shall be actively pushed on. The implementation of the strategy of Shanghai’s new and high-tech brands shall be actively pushed on, and the enterprises of non-public ownership shall be supported to establish new and high-tech brands. The enterprises of non-public ownership, upon being accredited as the major cultivated new and high-tech brands, shall enjoy prioritized arrangement like the State-owned enterprises of the same type, in terms of technical reform, technological introduction, approving and filing projects, bank loans, financial discount, rewarding and intellectual property right protection, etc.

8. Actively supporting the scientific and technological innovation of the enterprises of non-public ownership

The“Provisions of Shanghai Municipality on Promoting the Transformation of New and High-tech Achievements”(SMPG G [2005] No. 52) printed and distributed by the Municipal People’s Government shall continue to be carried out, so as to perfect the“one-stop”service function of Shanghai Service Center for the Transformation of New and High-tech Achievements, to normalize the related intermediary service organizations, and to provide service for all enterprises of non-public ownership and the accreditation and transformation of new and high-tech achievements. The efficiency of scientific and technological innovation funds shall be enhanced and the financing service environment for the scientific and technological innovation by the enterprises of non-public ownership shall be improved. The service function of the public technological service platform shall be expanded and the supply of professional technological service shall be increased to provide the enterprises of non-public ownership with professional services including scientific and technological information, consultation, technological popularization, etc. The State-owned enterprises shall be encouraged to open their labs to the enterprises of non-public ownership to make full use of the scientific and technological resources. The technological market shall be perfected and the service level of technological transfer for the enterprises of non-public ownership shall be raised. Retired persons with expertise shall be encouraged to provide technological service for the enterprises of non-public ownership. The cost and risk incurred in the innovation and pioneering work of the enterprises of non-public ownership shall be reduced. The enterprises of non-public ownership are allowed to, on an equal footing, participate in tackling the key problems in major scientific and technological projects and the construction of labs and engineering research centers in this Municipality, by means of competitive bidding or other methods, according to relevant provisions. The assessment organizations in which the enterprises of non-public ownership participate shall be developed to improve the assessment service of intangible assets. The cross-ownership and cross-region exchange and connection of scientific and technological achievements shall be promoted to accelerate the transformation of new and high-tech achievements.

V. Encouraging the Non-Public Capital to Develop the Modern Service Trade and Social Undertakings

9. Intensifying the investment of non-public capital in the modern service trade

The non-public capital shall be encouraged to invest in the modern service trade, including financing, commerce, logistics, real estate, information service, shipping service, conference exhibition and tourism, intermediary service, leasing, culture, education, scientific research, medicare and sports. The non-public capital shall be supported to develop the market of intermediary organizations of authentication type, including law firms, accounting firms, assets evaluation firms, etc., and all those of other types not forbidden by laws and regulations, so as to raise service level and capability, and expand the service range according to law. The enterprises of non-public ownership investing in the modern service trade shall be granted the right to enjoy the relevant policy treatment provided by this Municipality. The non-public capital investing in the non-profit-making and profit-making fields of social undertakings shall be supported, guided and normalized, and while the market access is opened, governmental and social supervision and administration shall be enhanced, and public interests be safeguarded. The non-public sector of economy shall be supported to participate in the reorganizing and restructuring of social institutions of public ownership. The enterprises of non-public ownership shall be encouraged to make donation and give financial assistance to social undertakings and charities, and unified administration shall be practised.

10. Guiding the non-public capital to invest in running schools

The non-public capital shall continue to be encouraged to invest in running all kinds of educational institutions, except for those restricted by laws and regulations. Governments above the district and county level may set up special funds for privately-run education development, used for giving financial aid for the development of privately-run schools, commending and rewarding the collective and individual persons that make outstanding contributions. Exploration shall be made into the establishment of educational foundations of non-public ownership, the unique functional role of the foundations shall be brought into play, and the legitimate rights and interests of the non-public capital investing in education shall be safeguarded according to law, and the efficiency of the education invested by the non-public capital shall be raised. Multiple investment in conducting joint operation of schooling shall be actively developed, the non-public capital shall be supported to participate in the restructuring and reorganizing of the State-run schools at the non-compulsory educational stages and be encouraged to invest in establishing high level colleges and universities, and the training without record of formal schooling shall be vigorously developed. When conditions mature, the way the privately-run schools select, through public biddings, privately-run educational management organizations to conduct entrusted management may be explored. In assessing the qualifications of“experimental and model”schools, the same standards shall be applied on privately-run schools and State-run schools. For the privately-run educational organizations with clear property rights, belonging to the category of education without record of formal schooling, the charging standards shall be set by themselves and made open to the public; and those with record of formal schooling shall, according to the principle of running schools at cost with rational returns, report the charging standards to the related department for approval and make them known to the public.

11. Supporting the non-public capital to invest in the industry of culture and sports

The“Decision of the State Council on the Non-Public Capital Having Access to the Culture Industry”(SC G [2005] No.10) shall be carried out. The opening-up to the non-public capital of the field of the mass media industry of culture and news and other fields shall further open to the non-public capital, except for the part of the fields of culture and news, except the part of such field to which access has not yet been allowed by laws and regulations. The non-public capital shall be attracted to invest in culture and sports undertakings to form a number of diversely invested cultural and sports industrial groups, with well-known brands, fairly high management level and wide influence. The utilization of science and technology for the development of the competitive culture and sports industry shall be encouraged to flourish the cultural and sports undertakings in Shanghai. The non-public capital is allowed to establish cultural and sports enterprises including screen making, releasing, projection, performance, entertainment, sports operation, etc., by means of stock-controlling, stock-participation and cooperation, which shall enjoy the same treatment as the State-owned cultural and sports enterprises, and those meeting the conditions laid down by the State may also enjoy the related preferential tax policies. It is allowed for the non-public capital to participate in organizing and establishing cultural enterprises by using intangible assets, including personal reputation, copyright and managerial qualification as investments. The non-public capital is allowed to participate, in various ways, in the cultural activities and projects led by the government, including the ones for public good.

12. Guiding the non-public capital to invest in the field of medicare and public health

The non-public capital is allowed to participate, in various ways, in the restructuring of the State-owned medicare organizations outside the main framework of the essential medicare service, and to establish non-profit-making and profit-making medicare organizations and organize and establish medicare investment companies, hospital management companies and medicare groups. The non-public capital shall be guided and encouraged to invest in establishing the medicare and public health organizations concerned with nursing of the old, rehabilitation and mental care, and the profit-making medicare and public health organizations that can provide high-end service. Research shall be done on proposing the complementary policy measures relating to the participation of the non-public capital in the restructuring of State-owned hospitals, including the related policies on the transformation of the employees’status and their link-up to social treatment. For operational medicare organizations newly built with investment made by the non-public capital, large-scale medical equipment purchased by the operational medicare organizations with permission given by the government upon its special examination and approval, the planning control of regional public health shall be appropriately relaxed, based on their being in conformity with business standards and equipment conditions. For the sub-districts/towns/townships with wide and broad regional range and relatively weak medicare and public health resources allocated to them, while it is ensured that the government runs community public health service platforms well, the non-public capital may be encouraged and supported to provide residents with community public health service, by means of the government and medical insurance purchasing the service. The non-public capital which establishes non-profit-making health organizations may obtain rational returns according to relevant regulations.

VI. Encouraging the Non-Public Capital to Enter the Fields of Infrastructure and Municipal Public Utilities and to Invest in Agriculture

13. Supporting the non-public capital to participate, by taking various forms, in making investment in infrastructure, municipal public utilities and agriculture

By eliminating monopoly and opening the market, and depending on major projects, the non-public capital shall continue to be encouraged, through multiple forms including sole investment, joint venture, cooperation, joint operation, project financing etc., to participate in the investment, construction and operation in connection with infrastructure, including water conservancy, transportation, energy, water supply, gas supply, heat supply, roads, garbage disposal, sewage treatment, environmental sanitation facilities, etc., and municipal public utilities. In regard to the basic networks with the characteristics of natural monopoly, including water supply network, drainage network, gas piping network, etc., the non-public capital may be attracted to participate in stock, on the basis of ensuring the State-owned capital absolutely holds a controlling number of shares. With the agricultural scientific research, farm products processing and the agricultural products circulation field as key points, the non-public capital shall be encouraged, to participate in the investment, construction and operation in the agricultural field in various ways.

14. Creating a fair environment for market-oriented operation

Perfecting the government franchise operation system shall be accelerated and public biddings shall be normalized. The built-up infrastructure and the projects of municipal public utilities that possess conditions may transfer their franchise operation rights or property rights to the non-public capital according to law. The separation of enterprise from government and the separation of administration from management for infrastructure and municipal public utilities shall continue to be promoted, and the administrative functions such as trades planning, supervision of environmental technology and supervision and administration of the market and so on, possessed by State-owned enterprises and profit-making institutions in the fields of infrastructure and municipal public utilities, shall be stripped, so as to create a fair market environment for carrying out market-oriented operation. The enterprises of non-public ownership meeting the conditions shall be supported to participate in the business competition at the construction market in terms of general contracting, sub-contracting, public bidding agency, supervision and management, etc. The enterprises of non-public ownership shall be encouraged to participate in the reform of the system of property rights and operational mode in municipal public utility enterprises and institutions.

VII. Encouraging the Non-Public Capital to Participate in the Strategic Adjustment of National Economy

15. Actively guiding the non-public capital to participate in the reform of State-owned enterprises and vigorously developing the economy of mixed ownership

The enterprises of non-public ownership shall be encouraged to participate in the reorganization and restructuring of State-owned enterprises and collectively-owned enterprises, through diversified forms including merger and purchase, stock-controlling and stock-participation, etc. A batch of enterprises of non-public ownership with great strength, good reputation and core technology shall be supported to merge and purchase State-owned enterprises in their totality. The non-public capital shall be encouraged to participate in the shareholding reform of State-owned enterprises in the field of infrastructure and public utilities, access to which is not forbidden by laws and regulations. The enterprises of non-public ownership shall also be supported to participate in the reform of the system of property rights of State-owned enterprises and institutions in the fields of science and technology, culture, public health, education and sports, etc.

16. Ensuring the strengthening of the non-public capital’s participation in the construction of the service platform for the reform of State-owned enterprises

The non-public capital’s participation in the construction of the service platform for the reform of the State-owned enterprises in terms of information, management, technology and guarantee and so on shall be enhanced. The role of the property rights exchange in purchasing and merging and accepting the transferred national property rights by the non-public capital shall be brought into full play, and the organization and administration set-up of the property rights market shall be perfected, the transaction modes and varieties be innovated, and the rational property rights circulation and the rational structural adjustment of stock ownership in the enterprises of non-public ownership be guided, so as to provide an open, scientific and transparent transaction platform for the non-public capital to participate in the strategic readjustment of national economy. The role of different market intermediary organizations in terms of transaction and audit, evaluation and consultancy service and so on shall be brought into full play. The market transaction environment for the equal and normalized participation of the non-public capital in the reform of State-owned enterprises shall be built-up. A good job shall be done of the tracing and coordination service work after the participation of the non-public capital in the restructuring of the State-owned enterprises.

VIII. Encouraging the Public to Initiate Business and Broadening the Channel for Employment

17. Actively advocating business initiation by the public

The threshold for the company registration capital of an initiated small enterprise shall be appropriately lowered, and it is allowed to put the registration capital in place by installment. Individual persons shall be encouraged and supported, through the measures of developing the training in business initiation, loan guarantee and discount, support for work place, guidance in opening business information service, etc. Special funds shall be set up to provide loan guarantee for business created by the unemployed, persons enjoying agreement-bound social insurance NS surplus labor forces in the countryside on their own; the mechanism for the government to purchase the achievements of the training in business initiation shall be established, and the business starting capability of the persons starting business be raised; and the business initiation park of the irregular employment organizations shall be developed and built to provide the service of registration, office work and operation for the persons opening business. People in employment in this Municipality are allowed to contribute capital to buy shares in the enterprises of non-public ownership, unless the laws and regulations provide otherwise. All social intermediary organizations shall be encouraged to provide information and agency service for the initiated small non-public enterprise. For the pre-examination-approval matters involved in the registration of newly established enterprises, the measures of“accepting and handling by the commercial and industrial department, copying documents to the related departments, jointly examining and approving, completing the procedure within a time period”shall continue to be adopted, and commitment by notification and joint examination and approval on Internet shall be actively promoted.

18. Encouraging the persons having returned after studying abroad and university and college and technical school graduates to initiate business on their own

The bases for giving guidance in business initiation training (incubating basis) shall be vigorously developed to provide the special service concerning business initiation, information consultancy, market exploration, technological support agency for imports and exports, public utilities, labor and personnel, financing and guarantee, etc., for the solely-invested, jointly-invested and cooperative new and high technology enterprises, pillar industry enterprises and newly emerging service enterprise and all kinds of newly established enterprises of non-public ownership, which are founded by the persons having returned after studying abroad and university and college and technical school graduates, in the form of stock-participation or investment by technology. The enterprises initiated by the persons having returned after studying abroad and university and college and technical school graduates shall be given policy support in terms of business initiation fund and introduction of talents, and the persons make major contributions in business initiation shall be rewarded.

19. Actively developing privately-run non-enterprise units

The public shall be encouraged to found privately-run non-enterprise units. The privately-run non-enterprise units shall enjoy the same treatment as the State-run organizations in terms of land use, office housing, charging for public utilities, etc., the accredited privately-run new and hi-tech non-enterprise units shall enjoy the preferential policies on national taxation. The endowment insurance treatment for the personnel transferred from organs and State-owned institutions to the privately-run non-enterprise units shall, in the light of the reform of State-owned institutions, be governed by unified policies.

20. Encouraging the development of labor organizations for irregular employment

The labor organization for irregular employment, which is a component of the non-public sector of economy, is an incubator of small enterprises. The unemployed, the persons covered by agreement-bound social insurance and the surplus labor forces in the countryside shall be encouraged and guided to realize independent business initiation, in the forms of establishing labor organizations for irregular employment, developing community service trade and small scale manufacturing industry including household industry and handicraft workshop, and providing socialized service for units. The accredited labor organizations for irregular employment shall enjoy the related preferential supporting policies on tax reduction and exemption, the comprehensive insurance against employment risks, job subsidies and business initiation guidance, etc.

21. Encouraging the enterprises of non-public ownership to recruit persons seeking re-employment

The important role of the enterprises of non-public ownership in expanding the extent of re-employment shall be brought into full play, and the non-public-owned enterprise, the privately-run non-enterprise units and the labor organizations of irregular employment that give jobs to the non-agricultural workers, laid-off workers, the unemployed and the disabled, shall enjoy the preferential policies relating to tax reduction and exemption, set by the State and this Municipality. Special funds shall be set up for subsiding enterprises of non-public ownership, privately-run non-enterprise units and labor organization for irregular employment in accepting laid-off and unemployed workers. The labor security department and the relevant organizations shall provide public services in job introduction and labor security for the enterprises of non-public ownership, the privately-run non-enterprise units and the labor organizations for irregular employment to recruit laid-off and unemployed workers. The laid-off and unemployed workers recruited by the enterprises of non-public ownership, the privately-run non-enterprise units and the labor organizations for irregular employment shall be encouraged to attend the training at the designated training organs with the training fee to be subsidized as stipulated. The labor security department shall support the enterprises of non-public ownership, the privately-run non-enterprise units and the labor organizations for irregular employment, which are accredited by the said department as possessing the conditions for conducting professional technical training, to conduct such training.

IX. Intensifying the Financial Support to the Enterprises of Non-Public Ownership

22. Encouraging the innovation of investment and financing service and intensifying the credit support

The enterprises of non-public ownership engaged in the fields of infrastructure and public utilities, including water conservancy, transportation, energy, garbage and sewage treatment and environmental sanitation facilities and so on shall be encouraged to develop project financing. The policy measures about loan interest rate, etc. shall be fully utilized to guide and encourage all financial institutions to step by step raise the loan proportion of medium and small-size enterprises. The credit evaluation service for enterprises shall be perfected, credit loans shall be extended according to the requirements, and the financial institutions shall be encouraged to actively take the initiative to provide the enterprises of non-public ownership with the services of financing lease, managing financial affairs for companies, holding account trust, etc. The business in loan on physical assets mortgage, with the enterprises of non-public ownership as main service object, shall be extended, and the business in loan on nonphysical assets mortgage including patent right to technology, industrial property rights and so on shall be explored.

23. Actively broadening the channel of direct financing

The enterprise non-public ownership shall be supported to accelerate its development by using the platform of the capital market. The cultivation of the reserve resources of the high-quality listed companies among enterprises of non-public ownership shall be firmly grasped, the enterprises of non-public ownership meeting the requirements shall be recommended to apply for issuing stock openly and get listed on the stock market, the enterprise of non-public ownership shall be supported to carry out the activities of assets reorganization and stock ownership replacement, and be encouraged to raise funds through stock financing and project financing. The enterprise of non-public ownership with great strength shall be supported to raise funds at the international capital market through overseas listing and sale of shares to the foreign capital. The enterprise of non-public ownership with fairly great strength, operation in conformity with the national industrial policies and good reputation, are allowed to issue corporate bonds, according to the relevant regulations. The investment trust company shall be encouraged to explore the stock trust program geared to the enterprise of non-public ownership with stable income and controllable risk, and the establishment and improvement of the mechanism of stock trust withdrawal shall be accelerated. Within the scope allowed by law, the problems left over by history, including the taxation, definition of ownership of assets and normalization of stock ownership, etc. before the enterprises of non-public ownership are restructured and listed shall be appropriately dealt with. The enterprises of non-public ownership shall be encouraged to merge, acquire and organize the State-owned enterprises and listed companies in this Municipality.

24. Strengthening the credit guarantee in providing service for medium and small size enterprises

The credit guarantee system shall be perfected, and the credit guarantee mechanism of trade access, risk control, and compensation for loss and the credit re-guarantee mechanism shall be established and improved. The enterprises of non-public ownership meeting the requirements shall be encouraged to establish commercial guarantee organizations and mutual aid guarantee organization to develop various kinds of mutual and financing guarantee according to law. Insurance companies shall be actively propelled to develop various insurance products including property insurance, liability insurance, insurance against personal accidents and guarantee insurance, etc. that suit the characteristics of the enterprises of non-public ownership to provide omnifaceted insurance service for enterprises of non-public ownership.

X. Promoting the Development and Expansion of Non-Public Enterprises of Ownership

25. Guiding the enterprises of non-public ownership to develop in groups

According to the industrial layout and orientation, and in the light of the industries with special features and market demand in each district and county, the enterprises of non-public ownership shall be guided to actively make joint re-organization with funds, products, technology and brands as the link, and the non-public capital and enterprises of non-public ownership in all places shall be guided to converge toward the key developing industry, major industrial base and municipal-level industrial parks and zones in this Municipality. The enterprises of non-public ownership shall be propelled to develop the coordinated professional relationship with large enterprise groups to undertake specialized production and characteristic operation, with the course of development towards“speciality, proficiency, uniqueness and novelty”. The enterprises of non-public ownership shall be encouraged to implement the strategy of developing brands and to strive to create well-known and famous brands. The enterprises of non-public ownership possessing the conditions shall be supported to develop into big group companies with prominent main lines of business and strong market competitive power. The enterprises of non-public ownership enterprise groups according with the policy provisions of the State and this Municipality on supporting big enterprises and enterprise groups shall be handled by reference to relevant policies.

26. Guiding the enterprises of non-public ownership to develop export-oriented economy

The enterprises of non-public ownership shall be encouraged to implement the strategy of“going abroad”. The enterprises of non-public ownership possessing the conditions shall be supported to make direct investment abroad, to develop the processing trade abroad, and to exploit resource projects of international raw materials, energy and so on, and the formalities for check-up and approval of overseas investment by the non-public capital shall be simplified. The enterprises of non-public ownership shall be supported to extend the sales and service network abroad, and to exploit the projects favorable to promoting the export of equipment, product and labor service in this Municipality. The enterprises of non-public ownership shall be supported to merge and acquire the projects of international manufacturing industry equipped with research and developing centers and brands. The enterprises of non-public ownership shall be encouraged to implement international standards, and the enterprises according with quality security guarantee systems, and passing the authentication of products quality or the authentication of quality systems, shall be granted the right to enjoy the treatment of convenient and prompt customs clearance and inspection and quarantine at the“window for prioritized inspection”. The enterprises of non-public ownership shall enjoy the same treatment as the enterprises of other systems of ownership, in terms of applying for the establishment of bonded factories and bonded warehouses, applying for discounted export loans and credit insurance for exports, utilizing the trade development foundations and the funds established for medium and small-size enterprises to open up the investment market.

27. Doing a good job of providing service for the enterprises of non-public ownership across the country to come to Shanghai for development

Serving the whole country shall be adhered to, and Shanghai’s comprehensive advantages in geographical location, function, market and talents shall be brought into full play in the light of industrial structure adjustment and development planning, active measures shall be adopted including widening the opening-up, adjusting policies, strengthening service, etc., so as to provide good service for the enterprises of non-public ownership in all places to move their functional centers including headquarters, operational centers, procurement centers, research and developing centers, etc., to Shanghai, enterprises in the other cities and provinces of the country, and for the non-public capital in all places to invest and run enterprises in Shanghai, thus further creating an open, fair and just investment and market environment. The enterprises of non-public ownership in Shanghai shall be supported to participate in cooperative and exchange projects including this Municipality’s counterpart aid program, development of western region, revitalization of the traditional industrial bases in the north-eastern part of China and cooperation between Shanghai and Hong Kong, and cooperation among the enterprises of non-public ownership in the region of the Yangtze River Delta shall be promoted in the areas of transportation networking, joint tourism, information connection, joint ecological protection, joint-talents utilization, industrial alliance, etc. Policies which are equal to enterprises of public ownership shall be implemented for the enterprises of non-public ownership coming to Shanghai from other places to develop and make investment in construction projects and the enterprises of public ownership. Issues related to the policy of attracting the enterprises of non-public ownership in other places to come to Shanghai to make fortune shall be studied.

28. Guiding the enterprises of non-public ownership to raise their own quality

The enterprises of non-public ownership shall engage in the activities of production and operation according to law, establish the responsibility system for security, environmental protection, public health, labor protection, etc., actively adjust and optimize the product structure, speed up technological innovation, raise product quality, and reduce resource consumption and environmental pollution. The supervision and administration system and mechanism of the enterprises of non-public ownership for safe production shall be perfected to strengthen the work of safe production in earnest. Investors and operational and managerial persons of the enterprises of non-public ownership shall consciously observe laws and regulations, guiding principles and policies, command the modern scientific technology, and operational and managerial knowledge, and make efforts to raise their own quality. The municipal personnel department shall attach importance to the building of talents ranks for the non-public sector of economy. The assessment and recommendation system of professional managers shall be established. The profession-oriented and marketization process of the operational and managerial talents in the enterprises of non-public ownership shall be accelerated.

29. Perfecting the organization system of enterprises

The enterprises of non-public ownership shall, according to provisions of laws and regulations, establish normalized individual sole-funded enterprises, partnership enterprises and incorporated enterprises. According to the requirements of modern enterprise systems“clear ownership, defined power and responsibility, separation of enterprise from administration, and scientific management”, the enterprises of non-public ownership shall be assisted to establish effective enterprise systems, clarify ownership, and normalize the organizational systems, and the administrative system and operational mechanism of the enterprises of non-public ownership shall be further improved. The incorporated enterprises shall, according to the requirements of the“Company Law”, perfect the corporate governance structure and establish the scientific policy-making mechanism. The limited partnership system shall be actively explored, and the non-public capital shall be encouraged to organize and establish the business initiation investment company and its managerial c, , ompany.

XI. Strengthening and Improving the Service for the Non-public Sector of Economy

30. Improving governmental service

The“Law of the People’s Republic of China on Administrative Licenses”shall be carried out, the reform of the administrative examination and approval system be deepened, the governmental function be transformed in earnest, and the service for the enterprises of non-public ownership be improved and innovated. The market mechanism shall be perfected, by leaving the functions adjustable by the market mechanism to the market, leaving the affairs that may be settled by the market intermediary organization to such organization, leaving the matters that may be decided by the enterprises of non-public ownership to handle by itself according to law, so as to create a fair and legalized environment for the non-public sector of economy. Open information on government affairs shall be promoted, and the integrated information platform of government affairs shall be established. The municipal comprehensive economic department shall regularly release to the public the information and early-warning signals relating to industrial policies, development planning, key investment areas, market demands, economic operation, etc. The municipal statistical department shall make research on statistical methods on the non-public sector of economy to regularly reflect the development situation of the non-public sector of economy.

31. Accelerating the construction of the socialized service system for the development of the non-public sector of economy

The social service coordination system matching the development of the enterprises of non-public ownership shall be established. The formulation of intermediary service standards and the construction of the administration and supervision mechanism, in connection with consultation, assessment, account, lawyer and bidding agency, etc. shall be accelerated. Trade associations and chamber of commerce shall be vigorously developed, giving full play to their role of coordinated service, advisory consultation, bridges and ties and resource consolidation in the development of the non-public sector of economy. The enterprises of non-public ownership shall be supported to join trade associations on their own to promote mutually complementary advantages and coordinated development in non-public sector of economy, and to raise the organizational extent of the whole society in the market. The support to the intermediary service organizations shall be intensified, the principle of socialization, specialization and marketization be adhered to, and the development of various social intermediary service organizations in terms of training guidance on initiating business, investment and financing, market exploration, technical support, authentication service, information consultation, talents cultivation and so on shall be supported. The order of the intermediary service market shall be rectified, and intermediary service and fee-charging acts shall be normalized to create a better service environment for the non-public sector of economy.

32. Earnestly safeguarding the legitimate rights and interests of the investing body of the non-public capital

Government at all levels shall earnestly protect the legitimate operational rights of the investing body of the non-public capital according to law, push on the establishment and perfection of the systems of rules and laws and regulations on protecting the legitimate rights and interests of the non-public capital investment and the enterprises of non-public ownership, and protect according to law the non-public capital invested projects and the investors’property rights, intellectual property rights, independent operational rights and other legitimate rights and interests. The economic market order shall be established in a normalized and orderly manner, and the law-enforcement act shall be strictly normalized to protect equal competition, sternly forbid the practice of arbitrarily charging fees, setting quotas, conducting inspections, arranging agency and designating on the enterprises of non-public ownership. Complaint centers for the enterprises of non-public ownership shall be established, the work of handling complaints/petitions made by letters or visits in person shall be strengthened, the act of damaging the rights and interests of the investors shall be exposed and dealt with, and the coordination mechanism for the work of lodging complaints by the enterprises of non-public ownership shall be improved step by step. The education on popularization of legal knowledge for the enterprises of non-public ownership shall be enhanced, the legal consulting service for the enterprises of non-public ownership be perfected and the system of legal service and legal assistance for safeguarding the legitimate rights and interests of the enterprises of non-public ownership be established.

33. Safeguarding the legitimate rights and interests of the employees of the enterprises of the non-public ownership according to law

The enterprises of non-public ownership shall respect and safeguard the legitimate rights and interests of laborers, and according to the“Labor Law of the People’s Republic of China”and other related provisions, shall sign labor contracts with the laborers on the basis of consultation on an equal footing to ensure equal rights and obligations for both parties. The salaries of laborers must be paid on time and in full according to law, the salary standards shall not be below or be lower in disguised form than the minimum-salary standard, and the mechanism of normal increase in salary shall be established step by step. The construction of the social security system shall be promoted, and the enterprises of non-public ownership and their employees must, in accordance with the provisions of the State and this Municipality, join the social insurance including endowment insurance, unemployment insurance, medicare insurance, industrial injury insurance, birth insurance, etc., and pay insurance premiums. Relevant departments shall make research on the way of coordinating the labor relationship that suits the enterprises of non-public ownership, perfect the labor dispute system, do a good job of labor arbitration, and opportunely and convincingly settle labor disputes to maintain social stability. According to the requirements of the“Labor Law the People’s Republic of China”, the employees of the enterprises of non-public ownership have the right to organize and establish labor unions and practise democratic management, and the labor union shall earnestly safeguard the legitimate rights and interests of laborers according to law.

XII. Enhancing and improving the supervision and administration of the non-public sector of economy

34. Improving the mode of supervision and administration on the non-public sector of economy

The governments at the two levels of municipality and district/county shall, according to the productive and operational characteristics of the enterprises of non-public ownership, perfect the related systems and exercise the function of supervision and administration according to law. All governmental supervision departments shall reform the system of examination and approval and that of supervision and administration, according to the requirements of the“Law of the People’s Republic of China on Administrative Licenses”. The comprehensive enforcement in the fields of medicare and public health, cultural market, urban administration and economy shall be promoted by using the innovative methods of notified promise, process supervision and so on. The supervision and administration on the law-abiding education and the market operational act for the enterprises of non-public ownership shall be strengthened. The supervision and administration and law-enforcement on the protection of the intellectual property rights of the enterprises of non-public ownership shall be intensified. The role of social organizations in protection of consumers’rights and interests shall be brought into play, and the social supervision of the operation and products of the enterprises of non-public ownership shall be extended through multiple channels. The building of the supervision and administration and law-enforcement ranks engaging in industry and commerce, tax administration, finance, technological supervision, supervision and administration, etc. shall be strengthened, and the quality of the ranks shall be raised. The departments of supervision and administration and law-enforcement shall opportunely release information about supervision and administration to the public, practise the law-enforcement announcement system, and supervise acceptance of the administrative litigation involving the law-enforcement act in dispute according to law.

35. Promoting the environmental construction of social credit

The construction of the social credit system shall be strengthened, the social credit service system be built. The system of jointly collecting information relating to the credit standing of individual persons and enterprises shall further be improved and the sharing platform of credit information shall be established to create conditions for the construction of credit system in the non-public sector of economy. For the enterprises of non-public ownership evaluated by the third-party credit organization as having a fairly high credit grade, relevant departments shall provide convenience for them in terms of government purchase and payment of tax and charges, etc. The establishment of the system of collecting information relating to credit standing, the grade releasing system and the mechanism of punishment and discipline for breach of faith, which suit the characteristics of the medium and small-size enterprises in the non-public sector of economy shall be accelerated, the experimental work of establishing the corporate credit archives shall be promoted, and the credit archive data base of the enterprises of non-public ownership shall be established and perfected. The construction of the internal credit system of the enterprises of non-public ownership shall be promoted and the enterprises of non-public ownership shall be promoted to use credit products as reference in making policy-decision on credit extension to prevent commercial credit risk.

XIII. Strengthening Leadership to Create A Good Environment for Accelerating the Development of the Non-Public Sector of Economy in Shanghai

36. Strengthening the leadership over the work of developing the non-public sector of economy

Governments at all levels shall, in the spirit of“two perseverance”put forward at the Sixteenth Congress of Communist Party of China, and on the principle of active guidance, enthusiastic service and supervising according to law, strengthen the policy study and guidance on the non-public sector of economy. For the related public policy-making involving the development of the non-public sector of economy, opinions shall be broadly solicited to listen to the will of the people. The development of the non-public sector of economy shall be brought into the planning of national economy and social development, and the monitoring and analyzing of the development trend of the non-public sector of economy shall be strengthened. Stress shall be laid on giving play to the enthusiasm and creativity of all districts and counties developing vigorously the non-public sector of economy, and the system and mechanism for the development of the non-public sector of economy shall be innovated.

37. Creating a good atmosphere for the development of the non-public sector of economy

The laws and regulations, principles and policies of the Communist Party of China, the State and this Municipality on encouraging, supporting and guiding the development of the non-public sector of economy shall be energetically publicized, and the important position and role of the non-public sector of economy in the modernized construction of socialism shall be publicized. City-wide activities shall be organized once every two years to publicize and commend the excellent builders of the cause of socialism with Chinese characteristics that come to the fore in the development of the non-public sector of economy, so as to form a good social opinion environment favorable to the development of the non-public sector of economy.

38. Establishing a regular work mechanism to promote the development of the non-public sector of economy

The governmental function shall be further transformed, the administrative system of the non-public sector of economy shall be straightened out, the policy promotion and coordination center for the non-public sector of economy shall be set up, and the existing service system of the enterprises of non-public ownership shall be perfected, so as to form a regular work promotion mechanism of the non-public sector of economy. The assistant role of the federations of industry and commerce at all levels in the government administration of enterprises of non-public ownership shall be brought into full play. All districts and counties shall straighten out the corresponding work promotion mechanism and service system. All municipal departments shall lose no time in sorting out and repealing the policy documents not in line with the requirements of these Implementation Suggestions, lose no time in formulating and perfecting the specific measures and corresponding methods to promote the development of the enterprises of non-public ownership, and consciously solve the new problems occurring in the development of the non-public sector of economy, so as to promote the healthy development of the non-public sector of economy.