Original Title: Notice on the Issuance by the Municipal Government of the "Several Opinions on Promoting the Development of Shanghai’s Beauty and Health Industry"
To the People’s Governments of All Districts, and All Commissions, Offices, and Bureaus of the Municipal Government:
We hereby issue to you the “Several Opinions on Promoting the Development of Shanghai’s Beauty and Health Industry.” Please implement them conscientiously.
Shanghai Municipal People’s Government
September 14, 2017
Several Opinions on Promoting the Development of Shanghai’s Beauty and Health Industry
The beauty and health industry encompasses sectors such as daily-use chemicals, biological healthcare, medical devices, sports equipment, smart wearables, green food, fashion and creativity, and health management.The development of the beauty and health industry is an integral part of Shanghai’s efforts to consolidate and enhance the competitiveness of the real economy and foster new growth drivers. It is an inevitable choice for optimizing market supply and improving the quality of life for the people, and holds significant strategic importance for advancing the construction of Shanghai as an international “City of Design, City of Fashion, and City of Brands.” To accelerate the development of Shanghai’s beauty and health industry, attract innovation and entrepreneurship talent, and strengthen the integration of industry and urban development, the following opinions are hereby put forward:
I. Guiding Principles, Objectives, and Industrial Layout
(1) Guiding Principles
We will thoroughly implement the spirit of General Secretary Xi Jinping’s important speeches on continuously consolidating and enhancing the capacity of the real economy. Centering on Shanghai’s strategic goals of building a science and technology innovation center with global influence and a globally outstanding city, we will innovate government service models, establish a comprehensive beauty and health industry chain integrating “R&D and design, smart manufacturing, testing and inspection, exhibition and experience, and platform trading,” promote the leapfrog development of the beauty and health industry, and advance the expansion of product varieties, improvement of quality, and creation of brands within the city’s consumer goods industry, thereby further enhancing Shanghai’s urban appeal, creativity, and competitiveness.
(2) Objectives and Positioning
Position the beauty and health industry as a key pillar of Shanghai’s broader health industry development. Upgrade Fengxian’s “Oriental Beauty Valley”—the pilot zone for Shanghai’s health industry—into the “Shanghai Oriental Beauty Valley,” establishing it as a new industrial calling card for Shanghai. Building on Shanghai’s foundation and linking with the Yangtze River Delta and Pearl River Delta regions, we will create the largest beauty and health industry cluster in China and even Asia, featuring independent intellectual property rights.
By 2025, we will have initially established a comprehensive beauty and health industry chain platform integrating “R&D and design, smart manufacturing, testing and inspection, exhibition and experience, and platform trading.” The Shanghai beauty and health industry will reach a scale of 100 billion yuan, fostering 10 key enterprises with annual sales revenue exceeding 10 billion yuan and 3 to 5 industry-leading enterprises with annual sales revenue exceeding 50 billion yuan;The sector will boast more than 10 internationally renowned brands, with proprietary brands capturing over 50% of the national market share. Specifically, the “Oriental Beauty Valley” industrial scale is projected to reach 50 billion yuan in 2020 and 100 billion yuan by 2025.
(3) Industrial Layout
1. In terms of spatial distribution, establish a “One Core, Two Zones, Five Linkages” development layout. “One Core” refers to the “Oriental Beauty Valley” in Fengxian; “Two Zones” refer to Minhang and Zhangjiang in Pudong; “Five Linkages” refer to Jing’an, Songjiang, Qingpu, Jiading, and Baoshan, forming a spatial layout for the entire beauty and health industry chain and fostering integrated, synergistic development.
2. In terms of the industrial system, a “3+X” industrial framework will be established. The “3” refers to expanding and diversifying the beauty and cosmetics industry to build a complete industrial chain, accelerating the development of biopharmaceuticals, health supplements, and green foods, and fostering the medical device and sports equipment industries. The “X” refers to industries related to the extension of the beauty and health industry value chain, such as online health testing, cultural creativity, R&D and design, specialized beauty index services, and third-party application services.
II. Support Measures
(1) Supporting the Application of Institutional Innovation Outcomes
Promote the transformation and upgrading of the Minhang Export Processing Zone within Fengxian District into the “Fengxian Comprehensive Bonded Zone.” In accordance with the requirements of the implementation plan for linking reforms in the Shanghai Pilot Free Trade Zone with city-wide reforms, prioritize the promotion of eligible reform pilot experiences to the “Oriental Beauty Valley” for early implementation and testing.Explore adjusting the management of imported non-special-use cosmetics from the current approval system to a filing system, allowing them to benefit from the “non-special-use” filing policy. Through the pilot “Fengxian Comprehensive Bonded Zone” specialized cross-border e-commerce platform for cosmetics, explore the use of the comprehensive bonded zone model to facilitate the experience and display of non-special-use cosmetics and other beauty and health products from overseas that are preparing to enter the Chinese market. Support the deepening of business registration system reforms within the “Oriental Beauty Valley.”(Responsible Departments and Units: Municipal Development and Reform Commission, Shanghai Pilot Free Trade Zone Administration Committee, Shanghai Customs, Shanghai Entry-Exit Inspection and Quarantine Bureau, Municipal Commerce Commission, Municipal Food and Drug Administration, Municipal Administrative Reform Office, Municipal Administration for Industry and Commerce, Fengxian District Government)
(2) Innovating Government Service Models and Regulatory Approaches
Advance the “Internet Plus Government Services” initiative by standardizing online service items, optimizing online service processes, promoting online processing of service matters, innovating online service models, and fully disclosing service information. Actively explore the division of administrative approval functions between municipal and district-level governments, and, centered on “streamlining administration and delegating power,” minimize administrative approval processes and timeframes to the greatest extent possible. Establish a comprehensive platform for in-process and post-event supervision, strengthen information interconnection and sharing, improve cross-departmental regulatory coordination mechanisms, effectively prevent and control safety risks, and ensure the healthy development of the industry.Streamline the approval process for special items used in global collaborative R&D in the biopharmaceutical sector to enhance service levels for industrial development. (Responsible Departments and Units: Municipal Administrative Reform Office, General Office of the Municipal Government, Municipal Food and Drug Administration, Municipal Administration for Industry and Commerce, Shanghai Entry-Exit Inspection and Quarantine Bureau, and district governments)
(3) Supporting Breakthroughs in Scientific and Technological Innovation
Encourage beauty and health enterprises to engage in technological innovation, and include cosmetics enterprises with strong technological innovation capabilities, good growth potential, and high added value within the scope of support for “Science and Technology Little Giants.” Support leading enterprises in the industry to strengthen cooperation with domestic and international universities, research institutes, and professional service organizations to establish national and municipal-level engineering and technology research centers, enterprise technology centers, industrial design centers, R&D and transformation functional platforms, and industrial technology innovation alliances. Establish specialized maker spaces in the beauty and health industry sector.Promote the transfer and commercialization of scientific and technological achievements in the beauty and health industry, and establish a “Shanghai Oriental Beauty Valley Beauty and Health Industry Special Competition” within the Shanghai Innovation and Entrepreneurship Competition. (Responsible Departments and Units: Municipal Science and Technology Commission, Municipal Finance Bureau, Municipal Education Commission, Municipal Commission of Economy and Information Technology, district governments)
(IV) Supporting Talent Development in the “Oriental Beauty Valley”
Support “Oriental Beauty Valley” enterprises in attracting various outstanding talents through tiered talent recruitment policies, such as residence permit points, residence-to-household conversion, and direct household registration. Prioritize the recruitment of high-end talent in R&D, design, and marketing within the beauty and health industry. Support “Oriental Beauty Valley” enterprises in becoming municipal employment and entrepreneurship internship bases and provide them with policy support.Strengthen talent cultivation in the beauty and health industry. Enterprises in the “Oriental Beauty Valley” that organize relevant talent training programs will be eligible for vocational training subsidies for employees in accordance with regulations. Talent recruitment and support policies at the Fengxian District level will be prioritized toward the beauty and health industry sector. (Responsible Departments and Units: Municipal Human Resources and Social Security Bureau, Fengxian District Government)
(5) Promoting the Aggregation of Industrial Resources in the “Oriental Beauty Valley”
Through industrial policy guidance, encourage leading enterprises and key projects in the beauty and health sector—such as cosmetics and biomedicine—to prioritize establishing operations in the “Oriental Beauty Valley.”Explore new models for joint investment promotion at the municipal and district levels, and encourage multinational corporations in the beauty and health industry to establish regional headquarters in the "Oriental Beauty Valley." Guide and promote the clustering of key industry-related research institutes, R&D organizations, standardization technical organizations, testing and inspection agencies, and industrial metrology testing platforms in the "Oriental Beauty Valley," and encourage the establishment of independent, high-end medical testing institutions to drive the development of the "Oriental Beauty Valley."Position the “Oriental Beauty Valley” as a key hub for incubating the achievements of the “Zhangjiang Pharmaceutical Valley,” promoting “synergistic development between the two valleys.” Guide leading enterprises to integrate advanced measurement technologies throughout the entire manufacturing process to enhance product quality and drive industrial transformation and upgrading. Support outstanding enterprises in the beauty and health sector that meet the criteria and operate under strict government supervision in applying for direct sales industry qualifications from the Ministry of Commerce.(Responsible Departments and Units: Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Bureau of Quality and Technical Supervision, Municipal Commission of Commerce, Zhangjiang High-Tech Zone Administrative Committee, Municipal Food and Drug Administration, Municipal Health and Family Planning Commission, Fengxian District Government)
(6) Supporting Private Capital Participation
Encourage market-oriented and diversified social capital to participate in supporting the beauty and health industry, and facilitate the establishment of funds such as the Shanghai Fashion and Technology Industry Fund. Encourage financial institutions to increase the proportion of credit loans and guaranteed loans for “Oriental Beauty Valley” enterprises. Encourage financial institutions to conduct financing operations using intellectual property rights (such as patents and trademarks) and accounts receivable as collateral. (Responsible Departments and Units: Municipal Financial Services Office, Municipal Development and Reform Commission, Municipal Intellectual Property Office, Municipal Commission of Economy and Information Technology, Fengxian District Government)
(7) Strengthening Land Use Guarantees
The beauty and health industry shall be treated as a strategic emerging industry of Shanghai and supported accordingly. At least one-third of the land quotas freed up through the reduction of industrial land in Fengxian District shall be allocated to support the establishment of key industrial projects, with priority given to the land needs of beauty and health enterprises. For new construction land quotas required by major projects in the beauty and health industry, the municipal government may provide coordinated support following review and approval by the “Three Commissions and Two Bureaus.”Implement flexible-term land grants for industrial land. Industrial land for industrial projects shall initially be granted for a term of 20 years. Upon expiration of the 20-year term, if the project remains aligned with industrial policy, the term may be extended for 30 years via negotiated grant at the original grant price to reduce land costs. Projects recognized as major strategic industries or functional projects of Shanghai may be granted directly for a term of 50 years.(Responsible Departments and Units: Municipal Planning and Natural Resources Bureau, Municipal Development and Reform Commission, Municipal Commission of Economy and Information Technology, Municipal Finance Bureau, Municipal Environmental Protection Bureau, Fengxian District Government)
(8) Strengthening Fiscal Support
Make full use of existing municipal-level special funds to support the beauty and health industry of the “Oriental Beauty Valley.” Beauty and health enterprises that meet the criteria of the National Industrial Policy Encouragement Catalog may apply for exemption from import duties on self-used production equipment not included in the National Catalog of Non-Exempt Goods, provided they present a confirmation letter issued by relevant municipal government departments certifying that the project is a domestic or foreign-invested project encouraged by the state.(Responsible Departments and Units: Municipal Finance Bureau, Shanghai Customs, Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Local Taxation Bureau, Fengxian District Government)
(9) Establish the “Three Capitals” Demonstration Zone
Fengxian District is hereby designated as the “Demonstration Zone for the ‘Capital of Design, Capital of Fashion, and Capital of Brands’.” Support the “Oriental Beauty Valley” industrial park in its bid to become a “National-Level Trademark Brand Entrepreneurship and Innovation Base,” and facilitate the establishment of a “Trademark Pledge Acceptance Point” and a “Trademark Registration Acceptance Point” by the Trademark Office of the State Administration for Market Regulation within the “Oriental Beauty Valley” Administrative Service Center.Support Fengxian District in conducting a pilot program for “Comprehensive Intellectual Property Law Enforcement Management Reform within the Framework of the Unified Market Supervision System,” and establish the “Oriental Beauty Valley” Comprehensive Intellectual Property Protection Center to promote the concentration of patent application review, intellectual property legal rights protection, and administrative law enforcement within “Oriental Beauty Valley.”Guide the “Oriental Beauty Valley” in compiling and releasing the “China (Shanghai) Cosmetics Industry Index,” which comprehensively reflects trends in the scale, quality, costs, market, and international trade of China’s cosmetics industry, and strive to release industry indices for specific sub-sectors with global influence. (Responsible Departments and Units: Municipal Commission of Economy and Informatization, Municipal Administration for Industry and Commerce, Municipal Intellectual Property Office, Municipal Food and Drug Administration, Fengxian District Government)
(10) Establish National-Level Product Design Centers
Promote the establishment of national-level centers in the "Oriental Beauty Valley," including a Cosmetics Design Center, a Sports and Fitness Equipment Design Center, and a Green Food R&D Center, covering all links in the industrial chain such as product functional design, integrated design, packaging design, process design, and service design. (Responsible Departments and Units: Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Fengxian District Government)
(11) Establish National-Level Inspection, Testing, and Evaluation Service Platforms
Promote the establishment of national-level safety evaluation technical institutions such as the “Cosmetics Inspection and Testing Center,” “Sports and Fitness Equipment Testing Center,” and “Import-Export Cosmetics Testing Laboratory” in the “Oriental Beauty Valley.” Support qualified market entities in actively participating in the construction of public service platforms for quality and technical infrastructure, and introduce standardization technical organizations to deeply engage in the formulation of various standards, thereby securing a leading technological position in the manufacturing and import-export trade sectors of the beauty and health industry.(Responsible Departments and Units: Municipal Bureau of Quality and Technical Supervision, Municipal Commission of Economy and Information Technology, Shanghai Entry-Exit Inspection and Quarantine Bureau, Municipal Science and Technology Commission, Municipal Food and Drug Administration, Shanghai Customs, Fengxian District Government)
(12) Establish the Shanghai International Fashion Industry Exhibition Center
Promote the “Oriental Beauty Valley” as the premier venue and hub for specialized beauty and health industry exhibitions in Shanghai. Support the hosting of events such as the China International Cosmetics Expo and the China International Sports and Fitness Equipment Expo; support the organization of various branded events including the Shanghai International Beauty and Hairdressing Festival and the Shanghai International Fashion Consumer Goods Expo; and support the creation of the “Beauty First” exhibition and sales center to expand the influence of regional brands.Actively explore the development of a full-industry-chain product traceability system for cosmetics, and build a professional consumer market that integrates online and offline channels, featuring anti-counterfeiting measures, authenticity guarantees, and high integrity. Promote the establishment of an International Interaction Center for the Beauty and Health Industry within the “Oriental Beauty Valley,” and strengthen industrial cooperation with leading nations in the beauty and health sector, including France, Italy, the United Kingdom, the United States, Japan, and South Korea.Establish an international beauty and health industry alliance to facilitate the industry’s “going global and inviting the world in” through forums, talent training, technology transfer, product promotion, and cooperative exchanges. (Responsible Departments and Units: Municipal Commission of Commerce, Municipal Commission of Economy and Information Technology, Municipal Bureau of Culture, Radio, Film and Television, Municipal Commission of Housing and Urban-Rural Development, Municipal Bureau of Planning and Natural Resources, Fengxian District Government)
(13) Establish a City-District Collaborative Promotion Mechanism
Adhere to a promotion mechanism characterized by “city-district coordination with a district-led approach.” Fengxian District will establish the “Oriental Beauty Valley Beauty and Health Industry Promotion Leading Group,” which will be responsible for industrial planning and layout as well as the advancement of specific projects, thereby fostering a favorable environment for development and services. For major matters involving the municipal level, municipal industry departments will take the lead in convening meetings with relevant departments to conduct specialized research and coordination, ensuring the smooth and orderly development of the “Oriental Beauty Valley.”Establish a liaison system for the beauty and health industry between the municipal and district levels to facilitate regular information exchange and coordination. (Responsible Departments and Units: Municipal Commission of Economy and Information Technology, Fengxian District Government, Municipal Development and Reform Commission)
