A speaker introduces favorable policies for high-tech enterprises during a meeting with foreign-invested enterprises in Shanghai. [Photo/WeChat account: sh_kjrc]

The Shanghai government held a meeting with representatives of more than 150 foreign-invested enterprises in the city on Aug 25.

The meeting was aimed at introducing the business environment, especially the foreign investment environment, and favorable policies for science and technology innovation in Shanghai.

During the meeting, experts explained the certification process for high-tech enterprises, the projects for the commercialization of sci-tech achievements and the additional tax deductions for R&D expenditures.

Lu Min, chief engineer of the city's science commission, said the Shanghai government has been working to help local enterprises overcome the challenges posed by the COVID-19 epidemic and ensure their stable development.

Taking this year's income tax settlement and payment as an example, Lu said more than 16 billion yuan ($2.34 billion) in corporate income tax has been reduced or exempted for high-tech enterprises in Shanghai. Furthermore, according to the city's additional tax deduction policy for R&D expenditures, 38.2 billion yuan in income tax has been reduced or exempted for technology companies in Shanghai.

According to Lu, Shanghai has also streamlined the application and approval processes for the certification of high-tech enterprises and projects related to the commercialization of sci-tech achievements.

Foreign-invested enterprises are an important part of Shanghai's high-tech industry. Statistics show that there are more than 1,200 foreign-invested high-tech enterprises (including Sino-foreign joint ventures) within the three-year validity period. In 2019, foreign-invested high-tech enterprises achieved a sales revenue of more than 580 billion yuan and a net profit of more than 60 billion yuan. The number of their invention patents currently stands at 26,508.

From January to July this year, Shanghai became home to 30 new regional headquarters, 14 Asia-Pacific regional headquarters and 11 R&D centers of multinational companies. The total number of regional headquarters and R&D centers of multinational companies in Shanghai is presently at 750 and 472 respectively. In July, a record high 598 new foreign-invested enterprises settled in Shanghai, indicating the confidence that foreign-invested enterprises have in Shanghai's future development.

The high-quality development of foreign-invested enterprises is an important factor in attracting foreign talent to Shanghai. Since the implementation of the work permit system for foreigners, Shanghai has issued more than 190,000 work permits for foreigners, of which more than 33,000 have been granted for foreign high-end talents (Category A), accounting for about 18 percent of the total. The number of foreigners working in Shanghai has exceeded 200,000, ranking first in the country.

The meeting was co-hosted by the Shanghai Science and Technology Entrepreneurship Center and the Shanghai Foreign Investment Promotion Center under the guidance of the Torch High-tech Industry Development Center of the Ministry of Science and Technology and the city's science commission and commerce commission.