Original Title: Notice of the People’s Government of Pudong New Area on Issuing the “Several Provisions of Pudong New Area on Promoting the Upgrading and Efficiency Enhancement of Existing Industrial Land”
Pudong Government Administrative Regulation [2022] No. 5
To all commissions, offices, and bureaus of the District Government; all administrative bureaus (management committees); all directly affiliated enterprises; and all subdistrict offices and town governments:
The "Several Provisions of Pudong New Area on Promoting the Quality and Efficiency of Existing Industrial Land" are hereby issued to you. Please implement them conscientiously.
December 12, 2022
Several Provisions of Pudong New Area on Promoting the Quality Improvement and Efficiency Enhancement of Existing Industrial Land
Article 1: Purpose and Legal Basis
To guide the efficient allocation of industrial land resources, accelerate the revitalization of existing industrial land, and promote high-quality industrial development, these Provisions are formulated in accordance with the “Opinions of the Central Committee of the Communist Party of China and the State Council on Supporting High-Level Reform and Opening-Up in Pudong New Area to Build a Leading Zone for Socialist Modernization,” the “Decision of the Standing Committee of the Shanghai Municipal People’s Congress on Formulating Regulations for Pudong New Area to Strengthen Legal Guarantees for High-Level Reform and Opening-Up,” and relevant regulations, taking into account the actual conditions of Pudong New Area.
Article 2 Scope of Application
These Provisions apply to all support, guarantee, and supervision and management activities aimed at promoting the improvement of quality and efficiency of existing industrial land in Pudong New Area.
For the purposes of these Provisions, “existing industrial land” refers to land designated for industrial, research and development, and warehousing purposes that has been acquired through allocation, grant, lease, or secondary market transfer.
Article 3 Basic Principles
In promoting the improvement of quality and efficiency of existing industrial land, the principles of industrial use, performance priority, multi-stakeholder participation, market-driven development, and coordinated supervision shall be adhered to.
Article 4 Implementation Mechanism
The District Government shall strengthen its leadership in promoting the improvement of quality and efficiency of existing industrial land, establish a coordination and promotion mechanism, and plan, coordinate, and decide on relevant major matters.
The district industry department is responsible for evaluating resource utilization efficiency, formulating industrial access standards and supervision agreements, and coordinating the advancement of industrial projects.The District Planning and Resources Department shall be responsible for spatial planning guidance, land management, and ensuring the implementation of projects. The District Development and Reform Department shall be responsible for formulating overall industrial development strategies and conducting comprehensive policy research. The District Ecology and Environment Department shall be responsible for advancing the preparation of environmental impact assessments for industrial park planning, as well as coordinating resource-related indicators for water systems, green spaces, and forest lands in major industrial projects. The District State-owned Assets Supervision and Administration Department shall be responsible for coordinating the participation of state-owned enterprises in the enhancement of the quality and efficiency of existing industrial land.
Other relevant district departments, including those responsible for construction and transportation, finance, market regulation, and emergency management, shall collaborate on related tasks within their respective jurisdictions.
The Administration Bureau (Management Committee) and town governments, as the entities responsible for overall coordination within their jurisdictions, are responsible for the implementation and supervision of specific projects.
Article 5: Evaluation and Application of Resource Utilization Efficiency
The District Industry Department, in conjunction with relevant departments such as Development and Reform, Planning and Resources, and Ecology and Environment, shall regularly organize surveys on resource utilization efficiency. Based on the results, evaluation categories shall be established, including those prioritized for support, encouraged for improvement, requiring adjustment and transformation, and subject to rectification and elimination, thereby providing a foundational basis for promoting the quality and efficiency enhancement of existing industrial land throughout the district.
The District shall leverage the government’s guiding role in resource allocation. Based on the results of the resource utilization efficiency evaluation, it shall support the innovative development and upgrading of high-quality projects through measures such as industrial access, land use guarantees, technological upgrades, energy pricing, fiscal and tax policies, and credit policies, while promoting the adjustment, transformation, and relocation of low-efficiency projects.
The Administration Bureau (Management Committee) and town governments shall, in conjunction with the results of the resource utilization efficiency evaluation, establish a database of key projects within their jurisdictions aimed at improving the quality and efficiency of existing industrial land, formulate implementation plans, and expedite their execution.
Article 6: Strict Access Management
District industrial departments, in conjunction with relevant departments such as development and reform, planning and resources, and ecological environment, shall implement requirements for maintaining industrial land use. In accordance with industrial guidance and regional planning objectives, they shall regularly refine the entry standards for promoting the quality and efficiency of existing industrial land. Adhering to a performance-oriented approach that evaluates projects based on technological advancement, output per acre, economic benefits, energy consumption, and environmental performance, they shall strengthen project entry reviews and incorporate entry conditions into land grant contracts.
Article 7: Support for the New Model of Industrial Upward Integration
Provided that feasibility is demonstrated through an assessment organized by the competent industrial authorities, support shall be provided for existing industrial land projects not yet included in full-lifecycle management to construct mixed-use buildings after signing an industrial supervision agreement. These buildings shall form comprehensive, highly efficient industrial spaces integrating production, R&D, pilot testing, exhibition, sales, and supporting facilities, and may be leased to projects that align with industrial guidelines and regional planning objectives.To promote the upgrading and efficiency enhancement of existing industrial land, the floor area ratio (FAR) for industrial land shall not be less than 2.0, and for general-purpose R&D land, not less than 3.0. Industrial enterprises that have obtained approval to increase the FAR of their industrial land shall not be required to pay additional land premiums.
For existing industrial land designated for industrial projects that have been incorporated into full-lifecycle management, such land may be rezoned as standard factory building land following an industrial land performance evaluation and upon approval by the district government.
Article 8: Support for the Supply of High-Quality, Low-Cost Standard Factory Buildings and General-Purpose R&D Properties
State-owned enterprises are encouraged to play a leading and driving role and may participate in efforts to improve the quality and efficiency of existing industrial land through measures such as acquiring existing industrial projects.
State-owned enterprises are encouraged to utilize their own existing industrial land to construct high-quality, low-cost standard factory buildings and general-purpose R&D facilities. For standard factory buildings and general-purpose R&D facilities that gain additional usable floor area through approved increases in floor area ratio, the space exceeding the enterprise’s own needs may be used to support the relocation of technology-based start-ups, provided that lease management requirements are met.
Article 9: Support for Leasing of Surplus Space
Support is provided for factory buildings and R&D facilities within existing industrial land projects that have been incorporated into full-lifecycle management. Beyond meeting the enterprise’s own needs, these facilities may, upon approval, be leased to technology-based startups or to operators of incubators and accelerators, with rental prices subject to regulation.
Article 10: Support for Participation by Diverse Entities
Support is provided for various market entities, including park development and operation enterprises with investment promotion resources and operational experience, as well as social capital, to participate in the development and construction of existing industrial land and the operation and management of parks through means such as acquisition or cooperation with the original land rights holders.
Article 11: Support for Land Reserve and Re-allocation
The district government may, in accordance with the needs of industrial development and in accordance with the law, acquire existing industrial land and re-allocate it.
The re-concession price of industrial land shall be subject to a floor price management principle. The starting price for the concession of industrial land shall be determined through collective decision-making, taking into account industrial policies and project performance; the starting price may be lower than the cost price.
Article 12: Support for the Transformation of Scattered Industrial Land
In accordance with the industrial development needs of Pudong New Area, industrial land may be converted into R&D land upon payment of the land grant fee and approval in accordance with the law.
Upon collective decision by the District Government, land grant fees for industrial land may be paid in installments over a period not exceeding two years, provided that full payment is made prior to real estate registration. The amount to be paid shall be determined by comprehensively considering factors such as land acquisition costs and contributions from public infrastructure.
Article 13: Support for High-Quality Transformation of Concentrated, Contiguous Areas
The Administration Bureau (Management Committee) and town governments are encouraged to select existing industrial land in contiguous, relatively intact areas, designate concentrated transformation zones, formulate implementation plans, and promote high-quality industrial development through measures such as centralized land acquisition and reserve.
Article 14: Leveraging the Effectiveness of Industrial Supervision Agreements
For the implementation of projects aimed at improving the quality and efficiency of existing industrial land, an industrial supervision agreement shall be signed and incorporated into the land grant contract, clearly stipulating matters such as the project’s access category, investment intensity, output efficiency, energy conservation and environmental protection, performance commitments, commencement of production, and liability for breach of contract.
The Administration Bureau (Management Committee) and town governments shall be responsible for the day-to-day supervision of project implementation, regularly verifying compliance with the supervision agreements, and reporting the results of such verification to district-level departments responsible for industry, planning, and natural resources.
Article 15: Full Lifecycle Supervision
The District Government shall coordinate and organize relevant departments, the Administration Bureau (Management Committee), and town governments to implement full-lifecycle supervision, carrying out systematic, refined, and dynamic management of industrial land use, and conducting comprehensive dynamic assessments and supervision of the project’s utilization status throughout the land use term.
Article 16: Interdepartmental Collaborative Supervision
The District shall establish a unified information system for the supervision of existing industrial land, incorporating information such as land use indicators and performance metrics into the system, and improving the dynamic supervision mechanism based on information sharing and interdepartmental coordination.
Joint supervision of land-related equity transfers and other activities shall be strengthened, and the construction of an enterprise integrity system shall be promoted. Entities found to be in breach of their legal obligations shall be subject to regulatory oversight in areas such as project approval, authorization, filing, and financing collateral.
Strengthen coordinated supervision of land use violations and breaches of contract; multiple departments shall intervene early to curb situations where industrial land is used for non-designated purposes at the source, thereby safeguarding the industrial nature of such land.
Article 17: Implementation Rules
Specific implementation rules for the supporting and safeguarding measures under these provisions shall be separately formulated by the district government or relevant district departments such as industry, planning, and natural resources.
Article 18 Effective Date
These Provisions shall take effect on January 15, 2023, and remain valid until January 14, 2028.
