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Regulations of China (Shanghai) Pilot Free Trade Zone

china-shftz.gov.cn Updated:2017-07-24

VII  Comprehensive Supervision

Article 36 It is imperative to innovate in the administrative management mode in the PFTZ, push forward the government administration from paying attention to prior examination to paying attention to mid- and post-event supervision, increase the participation in supervision, and promote the institution of a comprehensive supervision system of administrative supervision, industrial self-discipline, social supervision and public participation.

Article 37 The PFTZ shall establish a working mechanism of national security examination involving foreign investment. As for foreign investment under the scope of national security examination, the investor shall apply for national security examination; relevant administrations, trade associations, enterprises in the same industry and upstream and downstream firms may propose suggestions on the national security examination.

The party concerned shall cooperate in the national security examination, providing necessary material and information and accept relevant inquiry.

Article 38 The PFTZ shall establish an anti-monopoly working mechanism.

Involving the agglomeration of operators of the enterprises in the zone and reaching the declaration standard as prescribed by the State Council, the operator shall make prior declaration, and shall not carry out agglomeration without declaration. In respect of monopoly agreements, abuse of market-dominating positions and competition elimination and restriction by abusing administrative power, and such other behaviors, investigation and law enforcement shall be conducted according to law.

Article 39 The Administrative Committee, the zone-stationed agencies and the relevant departments shall record information on credit of enterprises and relevant persons in charge thereof, and, according to the public credit information catalogue, send to the PFTZ sub platform of the municipal public credit information service platform for integration.

The Administrative Committee, the zone-stationed agencies and the relevant departments may, in the work of market access, goods clearance, government purchase and bids and bid invitations, inquire about the relative credit record and use credit products to grant convenience to enterprises and individuals with good credit and impose restriction and punishment on those who break their promise.

The PFTZ shall encourage credit service institutions to use all sides’ credit information to develop credit products and provide credit service for administrative supervision and market transactions; enterprises and individuals are encouraged to use credit products and service.

Article 40 The PFTZ shall exercise the publication system of enterprises’ annual reports and the system of directory of enterprises with abnormal operation.

The enterprises in the zone shall, pursuant to regulations, submit enterprise’s annual reports and be responsible for the truth and legality of information thereon. The enterprise’s annual report shall be published to society as prescribed except for contents involving state secrets, business secrets and personal privacy.

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