Shanghai sharpens business rules for improved protection

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Shanghai's legislature recently adopted a new round of revisions to the Regulations of Shanghai Municipality on Optimizing the Business Environment, marking the fourth amendment since the policy took effect on April 10, 2020. The updated rules will come into force on Jan 1, 2026.

The revision aims to address key business concerns and align the city with higher global standards in market governance.

Stricter rules on payments to SMEs

The amendment addresses one of the most pressing issues for small and medium-sized enterprises: delayed payments. Large companies and other market players are explicitly prohibited from exploiting their dominant position to impose unfair payment terms, or to delay settling payments owed for goods, projects, or services provided by SMEs.

In line with a municipal notice released in June 2025, entities failing to pay SMEs on time must publicly disclose overdue payment data by March 31 each year.

More accurate and accessible policy delivery

To address concerns about fragmented or hard-to-understand policy information, the revised regulations call for a unified portal for policy searches, applications, and benefit collection, along with clearer and more measurable eligibility standards.

Policies supported by reliable data will, in principle, be included in the city's "apply-free" service model to ensure faster and more accurate assistance for businesses.

Stronger protection against harmful online content

The new rules introduce stricter measures against false or misleading information that harms corporate rights and interests. Internet service providers must strengthen content management, establish efficient complaint channels, and remove malicious posts promptly.

Cyberspace, public security, and communications authorities will jointly investigate and penalize violations, including fabricated claims and damaging online content.

Clearer procedures for special inspections

The amendment also standardizes the procedures for special administrative inspections. Government departments must follow the required approval and filing steps when drafting inspection plans and make such plans public within one month.

In urgent situations requiring immediate inspection, departments must update and file their plans accordingly. The revised rules also emphasize the need for consistency reviews when developing local regulations or policy measures to ensure better coordination across government departments.