To implement the municipal Party committee and municipal government’s requirements for innovation-driven development and economic transformation and upgrading, and in accordance with the overall plan for industrial restructuring during the 13th Five-Year Plan period, the Municipal Commission of Economy and Informatization, in conjunction with the Municipal Development and Reform Commission,the Municipal Finance Bureau, the Municipal Environmental Protection Bureau, the Municipal Planning and Land Resources Bureau, the Municipal Government Legal Affairs Office, and other relevant departments, has revised the "Shanghai Special Subsidy Measures for Industrial Restructuring" (Shanghai Municipal Government Office Document No. 18 [2012], which expired on December 31, 2015; hereinafter referred to as the "Measures") based on extensive research and thorough consultation. This has resulted in the new "Shanghai Special Subsidy Measures for Industrial Restructuring" (hereinafter referred to as the "New Measures"). The background, legal basis, departmental responsibilities, and main content of this policy document are interpreted as follows:
I. Background and Basis
During the 12th Five-Year Plan period, Shanghai successfully completed all national and municipal tasks related to industrial restructuring, meeting or exceeding expected targets. The Measures played a significant role in guiding, promoting, and supporting the city’s industrial restructuring efforts. The intensity and methods of support were reasonable and effective, yielding positive results and notable achievements in practice, and were fully recognized by various municipal commissions, offices, and districts/counties.To better advance industrial restructuring during the 13th Five-Year Plan period, the Measures have been revised in accordance with the “Notice of the State Council on Further Strengthening the Work of Eliminating Outdated Production Capacity” (State Council Document [2010] No. 7), the “Guiding Opinions of the State Council on Resolving the Contradictions of Severe Overcapacity” (State Council Document [2013] No. 41), and relevant municipal policies on the management of special funds for energy conservation and emission reduction, resulting in the new Measures.
The overall approach to this revision is as follows: First, to implement the strategic development requirements for industrial transformation and upgrading and ecological and environmental improvement in this municipality, the revision emphasizes the “Five Synergies” (synergistic promotion of industrial upgrading, comprehensive ecological and environmental governance, “urban village” renovation, pollution source control, and population size control), thereby promoting the city’s economic and social transformation and development;Second, to maintain the reasonable and effective level and methods of support for industrial restructuring outlined in the Measures, while taking into account the new circumstances and challenges facing industrial restructuring. Accordingly, certain provisions of the Measures have been adjusted and new clauses added to ensure policy stability, continuity, and practicality in implementation.
II. Departmental Responsibilities
The new Measures clarify the responsibilities of each member department of the Municipal Joint Conference on the Coordination and Promotion of Industrial Restructuring, as follows:
The Office of the Municipal Joint Conference on the Coordination and Promotion of Industrial Restructuring (hereinafter referred to as the “Municipal Industrial Restructuring Office,” located within the Municipal Commission of Economy and Information Technology) is responsible for proposing the annual work plan for industrial restructuring in the city and the plan for the use of municipal-level special subsidies for industrial restructuring, as well as providing opinions on applications for municipal-level special subsidies submitted by various districts and counties.
The Municipal Development and Reform Commission, in accordance with the city’s relevant fund management measures for energy conservation and emissions reduction, shall work with the Municipal Finance Bureau to ensure the proper allocation and issuance of municipal-level special subsidy funds.
The Municipal Finance Bureau shall review and allocate municipal-level special subsidy funds in accordance with relevant regulations on special fund management.
The Municipal Bureau of Statistics is responsible for verifying the reduction in energy consumption achieved by industrial restructuring projects and issuing certificates.
The Municipal Environmental Protection Bureau is responsible for reviewing and confirming the reduction of exhaust gases, wastewater, and hazardous waste in industrial restructuring projects, as well as the areas covered by industrial restructuring projects within drinking water source protection zones, and for issuing certificates.
The Municipal Human Resources and Social Security Bureau is responsible for verifying and confirming the social insurance enrollment status of employees who have been reassigned or relocated in key industrial restructuring areas within the city, and for issuing certificates.
The Municipal Bureau of Planning and Natural Resources is responsible for the secondary development and utilization of land, as well as land reduction efforts, in key industrial restructuring areas; it also reviews and confirms land use for industrial restructuring projects within the scope of the ecologically controlled line as delineated in the plan, and issues certificates.
III. Main Content
(1) Overview of Special Subsidy Funds
The municipal-level special subsidy funds for industrial restructuring in this city shall be allocated from the municipal energy conservation and emission reduction special funds. Districts and counties receiving compensation from the municipal-level special subsidy funds shall arrange matching funds at a ratio of no less than 1:1.
The scope of the special subsidy funds covers key area adjustment projects, individual key adjustment projects, and other industrial restructuring projects approved by the Municipal Joint Conference between January 1, 2016, and December 31, 2020.
Municipal special subsidy funds and district/county matching funds may be pooled by the districts and counties for expenditures on key adjustment projects that have been approved. The Economic Commission (or Commerce Commission) of each district or county shall, in conjunction with the district or county Finance Bureau, formulate practical and feasible implementation rules for fund management and plans for fund allocation and use.
(2) Application and Review of Special Subsidy Funds
The people’s governments of each district and county are responsible for industrial restructuring within their respective administrative regions. The Economic Commission (or Commerce Commission) of each district and county, in conjunction with the district or county finance bureau, shall submit applications for municipal-level special subsidy funds to the Municipal Industrial Restructuring Office and shall be responsible for the authenticity and completeness of the application materials.
The Municipal Industrial Restructuring Office shall organize a thematic review of the materials submitted by each district and county in accordance with the annual work requirements of the Joint Conference.
After the materials submitted by each district and county have been reviewed and approved, and the funding amounts have been determined, the Municipal Finance Bureau shall allocate the municipal-level subsidy amounts to the finance bureaus of each district and county in accordance with the issued special fund utilization plan and the review opinions submitted by the Municipal Industrial Structure Adjustment Office.
(3) Supervision and Management
For industrial restructuring projects that have received municipal-level special subsidy funds, the governments of each district and county shall strengthen supervision to ensure that the funds are used in a standardized, secure, and effective manner; if any major issues are discovered, they shall promptly report them to the Municipal Industrial Restructuring Office.
The Municipal Industrial Restructuring Office shall organize relevant departments to conduct follow-up management of the implementation of industrial restructuring projects in each district and county and the use of municipal special subsidies.
The Municipal Finance Bureau and the Municipal Audit Bureau are responsible for supervising the use of municipal special subsidy funds and organizing audit spot checks.
