Laws of the Shanghai Province

Chapter I General Provisions

Article 1

The present Provisions are formulated for the purpose of further implementing the "Decisions of the Central Committee of the Communist Party of China and the State Council on Further Strengthening the Talent Work" , enforcing the key strategy of "reinvigorating the city through science and education" , carrying out the "Action Outline for the Strategy of Strengthening the City through Human Resources in Shanghai" , and continuously optimizing the environment for personnel schooled abroad to work and start an undertaking in Shanghai.

Article 2

These Provisions apply to personnel schooled abroad who work and start an undertaking in Shanghai, including those who have acquired foreign citizenship and those who went abroad form Hong Kong, Macao and Taiwan for study.

Article 3

The Municipal Personnel Bureau is the competent department for personnel schooled abroad who work and start an undertaking in Shanghai, responsible for formulating and organizing the implementation of the policy and plan for the introduction of personnel schooled abroad, and shall make the synthesization and analysis of information on the introduction of such personnel, as well as conduct appraisal on the benefits from relevant work.

The Municipal Science and Technology Commission, the Municipal Education Commission, the Municipal Bureau of Public Security, the Municipal Administration of Industry and Commerce, the Municipal Foreign Assets Commission, the Municipal Bureau of Quality and Technical Supervision, the Municipal Finance Bureau, the Municipal Land and Tax Bureau, the Municipal Labor and Social Security Bureau, the Municipal Informatization Commission, the Municipal Medical Insurance Bureau, the Municipal Population and Family Planning Commission, Shanghai Customs, Shanghai Branch of People' s Bank of China, Shanghai Branch Office of the State Foreign Exchange Administration shall, according to their respective duties£¬do a good job of encouraging personnel schooled abroad to work and start an undertaking in Shanghai.

Article 4

Relevant government administrative departments, parks and zones accommodating enterprises established by personnel schooled abroad, unions of such personnel and employing units of such personnel shall strengthen the political and morality education in ideology, politics and morality cultivation for such personnel so as to make them abide by laws, rules, regulations and social morality on their own initiative. At the same time, it is necessary to care for their work and life and offer convenience to them in working and starting an undertaking in Shanghai.

Article 5

The "Joint Meeting for Coordinating the Work of Overseas Talents in Shanghai" , constituted by relevant units, shall mainly solve major problems in the work of personnel schooled abroad. The Municipal Personnel Bureau shall be responsible for its routine work.

Chapter II Qualified Conditions and Ways of Serving the Municipality for Personnel Schooled Abroad

Article 6

Personnel schooled abroad mentioned in these Provisions refer to the following personnel:

(1) Personnel who study aboard (out of the border) on government scholarship or at their own expenses and also acquire Bachelor Degree or above abroad (out of the border);

(2) Visiting professors or people engaged in advanced studies who have got the Bachelor Degree or above or the middle-level or above qualification for specialized technical job in China and also make certain achievements after pursuing advanced studies for one year or more at institutions of higher learning or research institutes abroad (out of the border).

Article 7

Focus shall be laid on introducing high academic level personnel schooled abroad who are much needed for strategic industries and key projects in this Municipality. High academic level personnel schooled abroad referred to in these Provisions shall, besides meeting the requirements under Article 6, conform to the following conditions:

(1) Distinguished scientists who are pioneers or founders of a domain or make great contribution to the development of a domain, thus enjoying certain prestige in the world' s field of academe or technology;

(2) Experts or scholars who hold the posts corresponding to associate professors or researchers or above in famous foreign (out of the border) institutions of higher learning or research institutes;

(3) Senior operation and management experts who hold high management positions in the world' s famous enterprises, or management personnel and technicians who hold senior technical posts in famous multinationals or financial agencies or in famous law (accountant, consultant) offices, thus knowing well the operation and international rules in relevant fields and possessing fairly rich experiences;

(4) Experts or scholars who hold the middle or senior management posts in foreign (out of the border) government agencies, international inter-government organizations or famous non-government agencies;

(5) Experts or scholars with profound academic attainments who make great contribution to the development of certain specialty or domain and publish influential research papers in world' s famous academic journals, or acquire academic award with international influence and whose academic achievements are at the forefront of their own industries or fields, and are universally confirmed in the industry;

(6) Experts or scholars or technicians who are in charge of large-scale international scientific researches or engineering projects, thus possessing fairly rich experiences in scientific research or technical engineering technology;

(7) Special technicians who possess proprietary intellectual property rights or know-how, such as invention or patent of key techniques;

(8) Particular talents who possess particular specialties and are much needed in this Municipality.

Article 8

Personnel schooled abroad shall be encouraged to adopt multiple ways to serve this Municipality' s economic and social development according to relevant laws, rules, regulations, as well as relevant provisions of the State and this Municipality:

(1) Holding posts as state civil servant, advisors, expert consultant or technical experts in state organs;

(2) Establishing new and high-tech enterprises in the form of using technology or money capital as investment;

(3) Acting as legal representatives for state-owned enterprises;

(4) Being engaged to hold the post or concurrently hold the special technical post, the middle or senior management post, the consultant or honorary post in schools, scientific research institutes, medical agencies, cultural and artistic institutes or organizations, news media, financial agencies, key (open) laboratories, technology and engineering research centers and other enterprises or institutions;

(5) Making investment to set up educational and medical agencies or service agencies, such as architectural design, lawyer, accountant and consulting offices;

(6) Conducting cooperative researches or establishing cooperative research and exploitation bases with institutions of higher learning, scientific research institutes, and enterprises of all kinds by making use of advanced science and technology, equipment and capital, etc.;

(7) Holding the senior management or technical post in major engineering works or key projects;

(8) Giving lectures or carrying out academic, cultural or artistic exchange in this Municipality;

(9) Launching the research and development activity out of the border for accepting entrusted scientific research projects or entrusting scientific research projects out of the border to relevant research units or groups in this Municipality for the latter to conduct research and development;

(10) Cooperating with relevant units or accepting commission to cultivate talents for employing units by reliance on scientific research, education and training agencies out of the border;

(11) Registering intermediary agencies to provide intermediary services, such as introducing foreign capital, technology and projects into this Municipality, making connection with foreign experts to hold academic and technical exchanges of all kinds in this Municipality, making connection with foreign academic, technical organizations to carry out international exchanges and cooperation in science, technology and economy, as well as engaging in intermediary service out of the border in promoting the sales of and marketing the products from this Municipality to exploit international markets;

(12) Being engaged to work in agencies resident out of the border of units in this Municipality;

(13) Serving this Municipality in other ways.

Chapter III Establishing Enterprises and Other Economic Entities

Article 9

The Municipal Personnel Bureau shall provide relevant services, such as qualification accreditation for personnel schooled abroad in term of enjoying preferential policies on the establishment of enterprises. The Municipal Administration of Industry and Commerce, the Municipal Finance Bureau, the Municipal Land and Tax Bureau, the Municipal Foreign Assets Commission, the Municipal Bureau of Quality and Technical Supervision, Shanghai Customs, and Shanghai Branch Office of the State Foreign Exchange Administration shall provide centralized services to make it convenient for personnel schooled abroad to go through relevant procedures, such as enterprise registration.

Article 10

The Municipal Personnel Bureau may first handle the qualification accreditation applied for by domestic relatives/friends of personnel schooled abroad on the latter' s commission for the enjoyment of preferential polices in establishing enterprises, and then departments concerned will go through relevant procedures for the convenience of personnel schooled abroad in establishing enterprises in Shanghai.

Article 11

Parks and zones accommodating enterprises established by personnel schooled abroad shall be set up in this Municipality. Such parks and zones may enjoy preferential polices for incubation agencies in new and high-tech development zones and economic and technological development zones and also may introduce and set up some specialized venture capital or enterprising capital.

Article 12

Parks and zones accommodating enterprises established by personnel schooled abroad with conditions shall be encouraged and supported to set up seed capital and secured capital in order to provide capital support and financing guarantee for personnel schooled abroad in establishing enterprises, thus creating conditions for enterprises in parks and zones to attract international enterprising investment and strive for listing.

Article 13

When personnel schooled abroad establish enterprises in parks and zones, all parks and zones shall provide convenient services, simplifying procedures and reduce links in the aspects of enterprise registration, land use, taxation, commodity inspection, imports and exports agency, business affairs, public utilities, labor and personnel, and also shall offer preferential treatment to enterprises of personnel schooled abroad registered in parks and zones in terms of ground leasing, capital support and information service. At the same time, it is necessary to assist personnel schooled abroad in submitting reports for government-financed projects of all kinds according to procedures.

Article 14

Governments at all levels shall intensify efforts to give support for parks and zones accommodating enterprises established by personnel schooled abroad, actively support them in setting up such parks and zones and caring for them in the construction and development of such parks and zones. It is necessary to form the appraisal mechanism for new and high-tech projects in such parks and zones and select enterprises with high technology content to be moved to parks and zones so as to turn such parks and zones into real bases for incubating new and high-tech enterprises of personnel schooled abroad and transforming their innovative scientific research achievements.

Article 15

The Municipal Personnel Bureau shall, in conjunction with district/county people' s governments as well as relevant administrative departments strengthen guidance, support and management of parks and zones accommodating enterprises established by personnel schooled abroad. The Municipal Personnel Bureau shall conduct inspection and appraisal on such parks and zones at regular intervals.

Chapter IV Relevant Treatment

Article 16

Personnel schooled abroad who work or start an undertaking in this Municipality may apply for "Shanghai Residence Card" according to relevant provisions. Among them, those who acquire foreign citizenship may apply for the "Shanghai Residence Card B" .

Article 17

In this Municipality, all district/county people' s governments shall be encouraged to set up classes for children of personnel schooled abroad and to care for their enrollment and admission into higher schools. Children of personnel schooled abroad who hold the valid "Shanghai Residence Card B" may enjoy equal treatment as citizens in this Municipality in preschool education and compulsory education period. In respect of those children who have lived in foreign country for more than 5 years and also take part in the examination for admission from junior high school to senior high school within the period of adapting to inland language (3 years), the bottom mark for enrolment may be appropriately reduced. Children of personnel schooled abroad who hold the valid "Shanghai Residence Card B" , after acquiring the graduation diploma for senior high school, may register for examination for enrollment in institutions of higher learning under this Municipality.

Article 18

In case personnel schooled abroad with foreign citizenship who hold the "Shanghai Residence Card B" have to come in and go out the country for many times, the municipal public security department shall go through the procedures for multiple entry and exit visa according to the valid period of their "Shanghai Residence Card B" . Units that employ such personnel shall assist them in going through relevant procedures.

Article 19

Personnel schooled abroad, after acquiring "Shanghai Residence Card B" , may be exempt from other employment permit.

Article 20

Personnel schooled abroad with "Shanghai Residence Card B" may, during their work period in Shanghai, take part in the appraisal or examination for acquiring the qualification for holding a specialized technical post and the examination and registration for specialized technical professional qualification.

Article 21

In respect of high academic level personnel schooled abroad who settle down in Shanghai to work or start an undertaking, they themselves, their spouse or children returning with them, their inland spouse who has been transferred and moved with them, as well as their inland children who are below 16 years old or study in the general middle school may apply for registered permanent residence in this Municipality or "Shanghai Residence Card" with the Municipal Personnel Bureau according to relevant provisions of this Municipality.

Article 22

A special fund shall be set up and outlay be raised from multiple channels in this Municipality for use as financial aid and relevant subsidies for high academic level personnel schooled abroad to start an undertaking, work or give lectures on short term in Shanghai. The procedures on the raising, use and management of the special fund shall be formulated by the Municipal Personnel Bureau, jointly with the Municipal Finance Bureau, the Municipal Land and Tax Bureau, the Municipal Science and Technology Commission, the Municipal Informatization Commission. Outlay are raised according to relevant State provisions.

District/county people' s governments may correspondingly set up the necessary special fund for supporting high academic level personnel schooled abroad to start an undertaking or work in Shanghai.

Article 23

All units in this Municipality shall care for the employment of the spouse of high academic level personnel schooled abroad, and shall, under equal condition, give precedence to their employment.

Article 24

Financial agencies of all kinds, venture capital in or out of the border, and private capital shall be encouraged to form venture capital for personnel schooled abroad to provide capital support for enterprises of those personnel according to relevant provisions of the State and this Municipality.

Article 25

The salaries drawn in Shanghai, of personnel schooled abroad who are engaged in accredited transformation projects of new and high-tech achievements may, according to the stipulations, enjoy the additional deduction thereof upon the calculation of the payable personnel income tax.

Article 26

Personnel schooled abroad may register for examination for the post of state civil servants in this Municipality according to relevant laws, rules and regulations. The Municipal Personnel Bureau shall, in the light of the characteristics of personnel schooled abroad and the requirements of government organs, organize those who meet the requirements to take part in the examination for recruiting state civil servants, and shall also recruit those who satisfy conditions on the principle of openness, justice and fairness.

Article 27

In case overseas personnel schooled abroad with foreign citizenship who work and start an undertaking in Shanghai may, after acquiring the "Shanghai Residence Card B" , apply for social insurance according to relevant provisions of this Municipality and also enjoy corresponding treatment.

Article 28

Hospitals with conditions in this Municipality shall be encouraged to cooperate with insurance companies in and out of the border to launch commercial medical insurance for the convenience of personnel schooled abroad in seeking medical advice in Shanghai.

Article 29

In case both husband and wife who are personnel schooled abroad settle down in Shanghai to work and start an undertaking and also hold Chinese visa, their second child born aboard or born in this Municipality after gestation period may acquire permanent residence household in this Municipality along with their parents according to relevant provisions of this Municipality.

Article 30

The remuneration to be paid to the personnel schooled abroad who work in this Municipality shall be determined generously by the engaging units through consultation with the personnel according to the posts they hold and their contributions.

Article 31

The problem of housing of personnel schooled abroad during their work in this Municipality shall be solved through consultation that the engaging units held with them. Their lodging may be either provided by the engaging units in the way of employment contract, or be rented or bought by them according to the principle of monetization of housing.

Article 32

Personnel schooled abroad may go through the procedures of purchasing foreign exchange with the RMB money realized from the profits in RMB gained by foreign-capital enterprises, joint ventures and cooperative businesses set up by them after their return to the home county or their lawful income in RMB during the period of their work in Shanghai at any designated banks operating business in foreign exchange.

Article 33

In case personnel schooled abroad need to import science and educational articles to meet their urgent needs in scientific research and teaching work in Shanghai, their work units shall make an application to the customs and the latter shall go through the procedures of reducing or waiving customs duties according to relevant State provisions. In case it is necessary to pay for imported articles, their work units may go through the purchase and remittance procedures at the designated banks operating business in foreign exchange with relevant materials, such as import contract, invoice, and customs declaration of payment of foreign exchange for the imported articles.

Article 34

Overseas personnel schooled abroad who work or settle down in Shanghai may apply for the import of articles for their own use in their work or life with the certificate issued by the Municipal Personnel Bureau and the customs shall grant duty-free clearance of these articles except those listed as dutiable by State provisions.

Article 35

Within the scope of industries in which investment is encouraged by the State and this Municipality, personnel schooled abroad may use their technique patent, scientific and technological achievements in the form of technology transfer, technology contract, technological investment, etc. and may set up enterprises by themselves or cooperate and establish joint-ventures with enterprises in this Municipality, and also may make investment in Shanghai in private name or in the name of the company registered abroad. Personnel schooled abroad may enjoy the lowest quota standard of registration capital in registering enterprises of the same kind.

Article 36

Personnel schooled abroad who make extraordinary contribution to this Municipality shall be given awards, taking into consideration the specific circumstances.

Article 37

Units benefiting from overseas projects introduced by personnel schooled abroad proper through opening channels may grant those personnel a certain proportion of remuneration.

Chapter V Supplementary Provisions

Article 38

These provisions shall become effective on January 1, 2006. "Provisions of Shanghai Municipality on Encouraging Personnel Schooled Abroad to Work in Shanghai" (SMPG G [1992] No.23) and "Provisions of Shanghai Municipality on the Introduction of High Academic Level Overseas Personnel Schooled Abroad" (SMPG G [1997] No. 14) shall be repealed at the same time.