Shanghai's 2026 Business Reforms Highlight 10 Key Tasks

Shanghai today unveiled its latest business environment upgrades, for the ninth consecutive year, centered on "Ten Key Tasks."

Following a record-breaking first quarter where its gross domestic product (GDP) surged 5.9 percent, outpacing the national average by 0.9 percentage points, the city of Shanghai has officially launched a sweeping new roadmap to cement its status as a global business capital.

The reforms come as Shanghai continues to climb global rankings. In a 2025 World Bank survey, the city saw 22 business environment metrics reach "global best" status, surpassing traditional hubs like New York, Singapore and Hong Kong.

A cornerstone of the new measures is "Apply-Free Benefits" (免申即享), a model in which eligible businesses automatically receive policy funds or tax subsidies without filing any application paperwork, as government systems proactively match tax and credit data. By the end of last year, Shanghai had rolled out 826 such automated policy projects across municipal and district levels, serving businesses over 7.06 million times.

Additionally, the city has successfully curbed over-regulation through its "Inspection Code" (检查码) initiative. Law enforcement officials must now present a unique QR code prior to any administrative inspection, allowing businesses to verify the inspection items and officer's identity. This system helped slash Shanghai's total administrative inspections by more than 40 percent in 2025, while corporate approval of these inspections climbed to 99.8 percent.

To support a rising demographic of the "One Person Company" (OPC), Shanghai is establishing dedicated international OPC communities.

In the Hongqiao International Central Business District, a joint project with Minhang District already hosts 32 projects, providing them with comprehensive support in cross-border payments, tax compliance, and residency.

An even more striking example of public-private sector synergy is the Fuxing Island project in Yangpu District, a collaborative effort between the local government and Volcano Engine, the cloud and artificial intelligence (AI) division of technology giant ByteDance.

Under this framework, the government provides policy support and physical space, while Volcano Engine contributes advanced AI tools and ecosystem resources to lower entry barriers. The community is strictly focused on three high-growth sectors: AI short-form dramas, AI mini-games and intelligent agent (Agent) development.

To accelerate these startups, Volcano Engine has committed a 40-million-yuan (US$5.88 million) resource package. Fang Xiaoai, Volcano Engine's public service lead in Shanghai, praised the collaboration, stating, "From policy response to helping enterprises transform, the Yangpu District government's support for enterprises is incredibly strong."

Alongside fostering micro-entrepreneurship, Shanghai continues to enhance the landscape for major foreign investments. The city recently pioneered the first local policy in China to encourage foreign-invested companies to reinvest their domestic earnings.

Liu Jian, director of the Shanghai Commission of Development and Reform, noted that major foreign-invested projects – including Tesla's Gigafactory, its new energy storage plant, and the Legoland resort – are progressing rapidly. He emphasized that a growing number of foreign firms are utilizing domestic reinvestment to launch new production lines, upgrade technologies, and establish local research and development (R&D) centers.

Looking ahead, the 2026 "Ten Key Tasks" will tackle critical areas like policy services, financing for small- and medium-sized enterprises, public bidding, IP (intellectual property) protection, and emerging sector regulation.