Original Title: Notice on Issuing the "Implementation Rules for Promoting High-Quality Utilization of Industrial Land in Shanghai (2020 Edition)"
Shanghai Planning and Natural Resources Land Use [2020] No. 351
To the People’s Governments of All Districts and All Administrative Committees:
To promote the high-quality utilization of industrial land in the municipality and foster high-quality industrial development, the “Implementation Rules for Promoting High-Quality Utilization of Industrial Land in Shanghai (2020 Edition)” have been formulated with the approval of the Municipal Government. These rules are hereby issued for implementation.
Shanghai Municipal Bureau of Planning and Natural Resources
Shanghai Municipal Commission of Economy and Information Technology
July 28, 2020
Implementation Rules on Promoting the High-Quality Utilization of Industrial Land in Shanghai (2020 Edition)
Article 1 Purpose
These Implementation Rules are formulated to further implement the Municipal Government’s “Several Opinions on Comprehensively Promoting the High-Quality Utilization of Land Resources in the Municipality” (Shanghai Municipal Government Regulation [2018] No. 21), to respond more proactively and effectively to the needs of the real economy, industrial development, and scientific research and innovation, to stimulate market vitality and support the recovery and development of enterprises through stronger policy measures, and to promote the high-quality utilization of industrial land in the municipality.
Article 2 Guiding Principles
In accordance with the “Shanghai 2035” Master Plan, these Rules benchmark against world-class and the highest domestic standards for industrial land performance, as well as the spatial governance of industrial areas in international metropolises. They adhere to the principles of “measuring success by output per mu, economic benefits, energy consumption, and environmental performance,” aiming to enhance the economic carrying capacity and output levels per unit of land, and achieve a more intensive, efficient, and sustainable high-quality utilization of industrial land.
Article 3 Basic Principles
We shall adhere to the principles of ensuring development and guiding through planning, making coordinated and effective use of various planned industrial spaces. In terms of total scale, we will fully meet the needs of industrial development and scientific research and innovation; in terms of spatial layout, we will strengthen guidance and strictly adhere to bottom lines to promote the integration of industry and urban development and create high-quality industrial spaces.
We will prioritize quality and performance, firmly adhere to the overall requirements of high-quality development, drive industrial transformation and upgrading through scientific and technological innovation, comprehensively strengthen industrial access control and full-lifecycle land management, improve the performance of industrial land use, and promote the enhancement of quality and efficiency in the real economy.
We shall adhere to the principles of revitalizing existing resources and promoting intensive and efficient use, focusing on maximizing space from existing resources, intensifying efforts to revitalize existing low-efficiency industrial land, and broadening revitalization pathways. We shall determine the development intensity of industrial land based on industrial needs, encourage mixed-use development, and improve land use efficiency.
Article 4 Scope of Application
For the purposes of these Implementation Rules, “industrial land” refers to industrial land (including industrial project-type and standard factory-type land), R&D land (including industrial project-type and general-purpose land), and warehouse land within the administrative boundaries of this municipality.
The term “park platform” as used in these Implementation Rules refers to platform-type enterprises recognized by the district government that undertake the construction, operation, and management of industrial parks. The term “leading enterprise” as used in these Implementation Rules refers to enterprises recognized by the district government that hold a leading position in their industry and possess the capability to build upstream and downstream industrial chains.
Article 5 Optimization of Industrial Spatial Layout
(1) Optimize the industrial spatial layout according to a three-tier system of “industrial bases—industrial communities—scattered industrial plots,” emphasizing functional positioning and land use structure guidance. The district master plan shall define the boundaries of industrial bases and industrial communities. Industrial land shall be guided by spatial planning to concentrate within industrial bases and industrial communities; new industrial projects shall, in principle, be located within industrial bases and industrial communities. In accordance with high-quality industrial development standards, scattered industrial plots to be retained in the planning shall be identified outside industrial bases and industrial communities.
(2) Industrial bases shall primarily serve manufacturing functions and focus on enhancing their capabilities. Industrial land should account for more than 70% of the total area, with the aim of establishing advanced manufacturing bases that fulfill national strategic functions and represent the highest level of domestic manufacturing.
(3) Industrial communities emphasize the integration of industry and urban life and functional diversity. The proportion of industrial and warehouse land should be controlled at around 50%, with an increase in functions such as design and R&D, corporate headquarters, and supporting public services.
Article 6: Delineation of Industrial Development Space
(1) In accordance with the urban functional positioning established by the “Shanghai 2035” Master Plan, delineate the baseline spatial requirements for high-quality industrial development. By 2035, the planned scale of industrial and warehousing land shall be 320–480 square kilometers, with its scale stabilized through a three-tier system comprising “industrial bases, industrial communities, and scattered industrial plots.” Within industrial bases, the area of industrial land designated for advanced manufacturing shall be no less than 150 square kilometers; this land shall be locked in for the long term, and changes in land use shall be strictly restricted.
(2) Provide sufficient industrial space in accordance with the planned layout. Incorporate newly planned industrial space into the industrial investment promotion platform for public disclosure to enterprises. During the investment promotion phase, provide “standard plots” based on the planned layout and land reserve status to effectively guide project implementation.
Article 7: Differentiated Management of Scattered Industrial Plots
(1) For scattered industrial plots within the development boundary that have not been designated as strategic reserve areas, if existing enterprise projects are assessed by the district’s industry and planning/resource departments as meeting the criteria of the “zero-land-increase” technical renovation positive list, they shall be retained in the detailed control plan and may be newly constructed, renovated, or expanded in accordance with the plan.For existing high-quality enterprises not retained in the plan but that do not conflict with the implementation of near- and medium-term plans and meet the criteria of the positive list, if they commit to unconditionally complying with the government’s land reclamation upon plan implementation, the district government may coordinate their renovation in accordance with industrial needs.
(2) For scattered industrial plots within strategic reserve zones, existing enterprise projects that are determined by the district government to meet the criteria of the “zero-land-increase” technical renovation positive list may be newly constructed, renovated, or expanded in accordance with the plan.
(3) For scattered industrial plots outside the development boundary that have been confirmed for retention through town master plans, unit plans, special plans, or village plans within rural units, reconstruction and expansion may proceed in accordance with the plan. For existing enterprise projects on land not confirmed for retention in the plan but requiring reconstruction or expansion, implementation shall follow project approval and planning adjustments; the authority to approve such projects is delegated to the respective districts.
Article 8: High-Standard, High-Efficiency Use of Strategic Reserve Areas
Strategic reserve zones shall be activated efficiently in response to the needs of major events and major projects. The district government shall submit a request to the municipal planning and resources department; after verification that the request aligns with planning functional orientations and layout requirements, consultation with relevant municipal departments, and approval by experts of the Municipal Planning Commission, the request shall be submitted to the municipal government for approval to activate the reserve zone. Adjustments to the strategic reserve zone and the preparation of detailed control plans may proceed concurrently.For major functional projects, strategic industrial projects, and other projects that genuinely require the use of strategic reserve zones, the activation procedures shall be completed within 10 working days.
Article 9: Determining Industrial Land Development Intensity Based on Demand
(1) Determine the floor area ratio (FAR) and building height of industrial land based on industrial needs. The FAR for industrial land shall generally not be less than 2.0; for industrial land using special processes, the FAR may be determined based on actual conditions. The FAR for R&D land may be determined by reference to commercial and office land in the same area, with the FAR for general-purpose R&D land not being less than 3.0, and the layout of such land should be relatively concentrated.
(2) Simplify the procedures for the implementation and adjustment of industrial land planning. Where adjustments to the floor area ratio or building height of industrial land are required, the relevant districts shall review the implementation plan in accordance with the requirements for differentiated management of floor area ratios, following the planning adjustment procedures. After public notice and submission, planning approval shall be completed within 10 working days.Specifically, for industrial bases and industrial communities where an increase in floor area ratio (with industrial and warehouse land reaching 2.0 and R&D land reaching 3.0) or building height (with industrial and warehouse land reaching 30 meters and R&D land reaching 50 meters) is required, the relevant districts shall implement the planning control indicators through updates to the graphic regulations during the project construction management phase.
(3) The division and consolidation of industrial land shall be incorporated into planning implementation; control factors for industrial land, such as green space ratio, building density, and building setback lines, shall be determined in accordance with construction project management procedures.
Article 10: Encouraging Mixed-Use of Industrial Land
(1) Within single-use industrial land, the proportion of other industrial uses and living support facilities may be increased to 30% of the total above-ground floor area, with the proportion allocated to living support facilities such as retail, catering, and dormitories not exceeding 15% of the total above-ground floor area. In areas such as the new zones of the Free Trade Zone and Zhangjiang Science City, pilot programs for multi-purpose mixed-use development will be further expanded, allowing enterprises to independently determine the proportions of various industrial uses; these programs will be rolled out more widely once the pilots are mature.
(2) The mixed layout of land parcels with mutually beneficial functions and the sharing of spatial facilities are encouraged, and the functional integration of public service facilities and municipal infrastructure will be strengthened.
(3) Land supply for mixed-use sites shall be differentiated based on the land use nature corresponding to the dominant purpose. Explore investment mechanisms for the construction of public service facilities and municipal infrastructure across different industries; establish relevant industry standards that facilitate integration and compatibility; and implement a land supply system that combines public welfare and commercial facilities.
Article 11: Coordinated Planning of Green Spaces in Industrial Bases and Industrial Communities
The scale and layout of green spaces within industrial bases and industrial communities shall be coordinated holistically; the pursuit of regional green space ratios shall not be one-sided, and concentrated, multi-purpose use shall be encouraged. The green space ratio for individual industrial projects shall be determined by the park management authority or other competent departments based on the specialized greening plan for the park approved by the greening authorities.
Article 12: Intensify Efforts to Acquire and Reserve Industrial Land
(1) Improve industrial development support mechanisms and establish special funds at the municipal and district levels for the acquisition and reserve of industrial land to support district governments in intensifying efforts to acquire and reserve underutilized industrial land.
(2) District governments may designate specific areas and stipulate that industrial land within such areas must undergo transformation and development through land acquisition and reserve.
Article 13: Continuously Supply Industrial “Standard Plots”
(1) Increase the supply of industrial “standard plots.” Advance spatial planning, land allocation quotas, land acquisition and reserves, and industrial access requirements in advance to proactively and expeditiously supply industrial “standard plots” for enterprises to select. Upon application, these plots may be transferred to the land auction process at any time to ensure that “land awaits projects.”
(2) Ensure a continuous and sufficient supply of industrial “standard plots.” Each district shall maintain a continuous supply of “standard plots” throughout the year, with the total volume of “standard plots” accounting for more than 40% of the annual industrial land supply.
Article 14: Ensuring Land Quotas for Industrial Projects
(1) Land quotas for major national and municipal strategic industrial projects, as well as industrial projects in the Chemical Industry Zone, Changxing Island, and the new area of the Free Trade Zone, shall be guaranteed through the municipal government’s centralized allocation of land quotas.
(2) Land quotas required for district-level industrial projects shall be linked to land reduction efforts and arranged and implemented by the respective districts. Districts that allocate land quotas generated through land reduction to industrial projects shall receive increased municipal fiscal subsidies.
(3) A system of temporary land quota borrowing shall be implemented; where relevant districts face temporary difficulties in supplying land quotas, the municipal government shall provide temporary land quota borrowing quotas. Mechanisms such as city-district coordination and quota transfer shall be explored to ensure the reasonable demand for industrial land through multiple channels and methods.
Article 15: Implementation of Guaranteed Industrial Land Supply Methods
(1) Industrial land for industrial projects and R&D land for industrial projects shall be supplied through a “land-plus-industrial-project” public listing method.
(2) Industrial land for standard factory buildings and general-purpose R&D land shall be supplied through public bidding, auction, and listing. Where such land is transferred to industrial park platforms or leading enterprises, it may be supplied through the “land-plus-industrial-project” listing method.
(3) The use of industrial land through “lease-to-own” and long-term lease arrangements is encouraged. Each district shall allocate a certain proportion of industrial land annually for supply via the “lease-to-own” method, whereby enterprises first lease the land for construction and industrial operations, and complete the transfer procedures after production begins or full capacity is reached. The transfer price shall be determined by deducting the lease payments already made from the total land price agreed upon at the time of leasing.
Article 16: Improving Policies on Flexible Concession Terms and Automatic Renewal
(1) Improve the “20-year flexible term + conditional automatic renewal” system for industrial land. The grant contract shall specify that upon expiration of the flexible term, if the industrial project still aligns with industrial policy guidelines, it may be automatically renewed through mutual agreement at the price stipulated in the original grant contract.
(2) For major investment projects with a total investment of 1 billion yuan or more, as well as national strategic industrial projects, municipal-level strategic key industrial projects, and municipal-level or higher manufacturing innovation centers and enterprise technology centers recognized by the municipal industrial authorities, industrial land for industrial projects may be granted for a term of 50 years.
(3) For district-level major industrial projects, industrial land designated for industrial projects may be granted for a term of 50 years through an annual quota control mechanism, subject to collective decision-making by the district government.
Article 17: Management of Industrial Land Prices Based on the Bottom-Line Principle
(1) In accordance with the bottom-line management principle, the starting price for the grant of industrial land may be set at no less than the national minimum standard for industrial land grants; the starting price for the grant of R&D land may be set at no less than the benchmark land price for R&D land. The land price for industrial land shall be linked to project performance, and the starting price for the grant of industrial land shall be determined through collective decision-making.
(2) Payment of land premiums for industrial land may be made in installments, subject to collective decision-making by the district government, with the maximum duration not exceeding two years; all payments must be settled prior to real estate registration.
Article 18 Strengthening the Management of Industrial Land Transfers
(1) Properties on industrial land shall be held as a whole, except for those explicitly agreed to be transferable. On general-purpose R&D land, no more than 30% of properties (excluding living support facilities) may be transferred; on industrial land designated for standard factory buildings for park platforms and leading enterprises, as well as on general-purpose R&D land, no more than 50% of properties (excluding living support facilities) may be transferred.
(2) Where property is transferable, the land grant contract shall specify the method of transfer, industrial access requirements, and exit mechanisms. The “lease-to-own” approach is encouraged, whereby transfer occurs only after the lessee meets predetermined conditions regarding industrial performance, R&D investment, and other metrics. For park platforms, the proportion of property transferred directly shall not exceed 60% of the total transferable property; for leading enterprises, this proportion shall not exceed 40%.Properties transferred by the park platform may not be transferred again within five years from the date of transfer registration. If transfer is indeed necessary after five years, the park platform or an agency designated by the district government may repurchase them at the agreed price on a priority basis; if the right of first refusal is waived, the properties may be transferred to enterprises or R&D institutions that meet the industrial access requirements. Properties transferred by leading enterprises may only be repurchased by the leading enterprises themselves or by an agency designated by the district government at the agreed price.
(3) Any changes to the capital contribution ratio or equity structure of an industrial land transferee must be approved in advance by the transferor.Each district shall establish a joint supervision mechanism involving land, industry, and market regulatory departments regarding equity transfers involving land. Based on the list of enterprises that have signed industrial land grant contracts, they shall provide services and conduct supervision related to equity changes. For equity changes that do not affect normal business operations and comply with industrial access requirements, opinions shall be clarified in a timely manner; for equity changes in breach of contract, actions shall be taken strictly in accordance with the contractual terms.
Article 19: Leveraging the Roles of Industrial Park Platforms and Leading Enterprises
(1) The types of industrial park platforms recognized include: functional platforms entrusted by the government to undertake regional development responsibilities; cooperative platforms established jointly with local collective economic organizations; and market-oriented platforms that operate independently. When the district government recognizes an industrial park platform, it shall specify the operational scope and responsibilities—such as public services and industrial investment promotion—through a cooperation agreement, and strengthen full-cycle supervision after recognition.
(2) Leading enterprises shall hold a leading position domestically within their respective industries, possess significant scale and competitive advantages, and demonstrate high market share and strong brand influence. When the district government designates leading enterprises, it shall specify requirements for industrial investment promotion, industrial cluster development, and necessary public welfare responsibilities through cooperation agreements, and strengthen full-cycle supervision following designation.
Article 20: Further Encouraging the Enhancement of Floor Area Ratio and Efficiency on Existing Industrial Land
(1) Fully utilize the industrial space reserved in the master plan; encourage “zero-land-increase” density increases on existing industrial land, expand the proportion of mixed-use components, and improve land use efficiency.
(2) In accordance with planning and industrial guidelines, no additional land premiums shall be levied for existing industrial and warehouse land where an increase in floor area ratio and the addition of underground space have been approved.
(3) Support the utilization of existing properties on allocated land to develop various new industries, business models, and formats, provided that safety requirements are met. During a five-year transition period, the land use designation, rights holder, and type of rights may remain unchanged.
Article 21 Further Optimizing the Mechanism for the Transformation of Existing Industrial Land
(1) The comprehensive transformation of contiguous areas of existing industrial land is encouraged. Development mechanisms shall be optimized; with the approval of the district government, professional entities such as industrial park platforms may participate in consortia led by the original rights holders to complete land use procedures through the payment of land value supplements for existing land and carry out transformation and development.
(2) For scattered industrial land not included in the overall transformation areas or old district renovation scope, upon approval by the district government, the original rights holders may, in accordance with planning and industrial guidelines and on the basis of assuming corresponding public welfare responsibilities, complete land use procedures by paying the land value adjustment fee for existing land and carry out transformation and development.
(3) Sub-districts and towns are encouraged to collaborate with industrial park platforms to organize the rights holders of scattered existing industrial land with dispersed ownership within their jurisdictions, consolidate land resources, pool development rights, and uniformly advance the transformation and efficient development of such scattered plots.
Article 22: Optimizing the Subdivision and Transfer of Surplus Land
For industrial land designated for industrial projects, any surplus portion remaining after meeting the original rights holder’s own needs may be transferred in parcels through the land transaction market—using a “project-attached” listing method—to industrial park platforms or projects that have met industrial access requirements, provided that the land meets the conditions for subdivision under the plan. This is subject to the planning and resources department clarifying the planning and construction conditions for the subdivided portion and the industrial department clarifying the industrial access and input-output requirements.
Article 23: Strengthening and Optimizing Full-Life-Cycle Performance Supervision
(1) District governments shall coordinate and organize relevant departments and sub-districts to fulfill their joint responsibilities for full-lifecycle industrial performance supervision of land. They shall improve the joint supervision mechanism among land, industry, and market regulatory departments regarding land-related equity transfers.
(2) Strictly enforce production commencement agreements and supervision to accelerate the到位 of project investments and the commencement of production. Set reasonable targets for project production capacity; for projects where the assessment of production capacity does not meet contractual requirements, the fulfillment of obligations may be determined through a comprehensive evaluation led by the industrial sector.
(3) Industrial land granted prior to the implementation of full life-cycle land management shall be incorporated into the full life-cycle management system by signing supplementary land grant contracts to clarify industrial performance requirements.
Article 24: Improving the Land Exit Mechanism
(1) The transferee of industrial land may voluntarily request to return the land use rights to the transferor. Upon the transferor’s consent, the contract shall be terminated, and the land price corresponding to the remaining term shall be refunded as agreed.
(2) For industrial projects whose performance fails to meet the requirements specified in the grant contract, the grantor shall hold the grantee liable for breach of contract in accordance with the grant contract, up to and including the recovery of the land use rights.
Article 25: Establishing a Mechanism for Disposing of Existing Low-Efficiency Industrial Land
(1) The municipal industry department shall take the lead in promoting resource utilization efficiency evaluations. Each district shall organize the implementation of the resource utilization efficiency evaluation system and conduct the identification of low-efficiency land in accordance with the *Shanghai Guidelines for Low-Efficiency Industrial Land Standards (2019 Edition)* and other relevant regulations.
(2) The municipal planning and resources department shall guide the districts in strengthening supervision of the fulfillment of concession contracts and strictly disposing of idle industrial land. Relying on the land full life cycle management information system, relevant departments shall be organized to implement joint supervision.
(3) District governments shall formulate disposal plans based on local industrial development needs and the current status of low-efficiency industrial land, establish dedicated working mechanisms, and implement differentiated policies—such as those regarding technological upgrades, fiscal and tax incentives, electricity pricing, environmental protection, and financial services—in accordance with the results of resource utilization efficiency evaluations. Strict management of unauthorized transfers of low-efficiency industrial land shall be enforced; for low-efficiency industrial land involving illegal activities such as unauthorized changes of land use, the competent authorities shall carry out administrative law enforcement.
(4) Actively explore market-based exit pathways. Encourage industrial park platforms to leverage their strengths as market entities to pilot market-based buyback and exit methods, such as “exchanging high-quality properties for low-efficiency land.” Guide enterprises to voluntarily exit low-efficiency land through market-based methods, such as transferring surplus land or subleasing surplus buildings.
Article 26: Deepen Reforms in Industrial Project Approval
For industrial projects granted with pre-approved plans or those whose design plans have been reviewed or exempted from review, the construction land planning permit and the construction project planning permit may be processed concurrently. The construction project planning permit for pile foundation works in industrial projects is abolished. For industrial projects located within industrial bases or industrial communities, as well as those exempt from design plan public notice, the on-site layout verification upon commencement of construction may adopt a filing system. Pilot programs will allow for the simultaneous processing of post-completion planning and resource acceptance and real estate registration upon the completion of industrial projects.
Article 27: Leveraging the Role of the Special Working Mechanism for Industrial Support
Each district shall organize industrial parks to promptly collect and report issues encountered by enterprises regarding planning, land use, and project approvals. Relying on the municipal and district “Task Force for Supporting Industrial Development Planning and Land Use,” they shall interpret policies using case studies to resolve enterprises’ difficulties and disseminate this information to enterprises across all industrial parks in the city through on-site promotion meetings and briefings.
Article 28: Effective Date
These Implementation Rules shall take effect on August 1, 2020. The original “Implementation Rules on Promoting High-Quality Utilization of Industrial Land in This Municipality” (Shanghai Planning and Land Resources Bureau Document No. 687 [2018]) is hereby repealed.
