Original Title: Notice on the Revision of the "Special Implementation Rules for Promoting the High-Quality Development of the High-End Equipment Industry in Pudong New Area"

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 revised draft of the "Special Operational Rules for Promoting High-Quality Development of the High-End Equipment Industry in Pudong New Area" is hereby issued to you. Please implement it strictly in accordance with these provisions.

Shanghai Pudong New Area Commission of Science, Technology, and Economy

Shanghai Pudong New Area Finance Bureau

June 14, 2023

Special Operational Rules for Promoting the High-Quality Development of the High-End Equipment Industry in Pudong New Area

To further promote the cluster-based development of the high-end equipment industry in Pudong New Area, strengthen the autonomy and controllability of the industrial and supply chains for major equipment, enhance the technological level of the industry, and increase the localization rate, these Operational Rules are hereby formulated in accordance with the "Several Policy Measures for Promoting the High-Quality Development of Key Advantageous Industries in Pudong New Area" (Pudong Government Regulation [2022] No. 5).

I. Eligible Entities

Enterprises that are registered and pay taxes in Pudong New Area, meet the conditions specified in this policy, and align with the direction of industrial development are eligible for this policy.

II. Scope of Funding

1. Support for Integrated System and Component Collaboration. Enterprises that supply core components with independent intellectual property rights—capable of replacing similar foreign products—to major equipment manufacturers for their first production batches will be granted a reward of up to 10% of the contract value for the first batch of the same product as specified in the contract signed with the equipment manufacturer. The maximum support amount per enterprise shall not exceed 5 million yuan.

2. Encouraging Innovative Applications of Intelligent Connected Vehicles. Support will be provided to enterprises undertaking modifications to intelligent connected vehicles, with subsidies of up to 30% of the modification costs, not exceeding 2 million yuan per enterprise annually. Support will also be provided to enterprises developing innovative applications of intelligent connected vehicles, with subsidies of up to 10% of the investment costs, not exceeding 2 million yuan per enterprise annually. When applying for either intelligent connected vehicle modifications or innovative applications, enterprises may receive the more favorable policy support, but not both.

3. Encourage the innovative application of autonomous driving equipment. Support qualified autonomous driving equipment enterprises in carrying out innovative applications of such equipment, providing an annual reward of up to 2 million yuan per enterprise based on the effectiveness of demonstration applications.

4. Support for smart factory construction. Enterprises designated as Shanghai Model Smart Factories or Shanghai Smart Factories by relevant Shanghai municipal departments will receive one-time rewards of 500,000 yuan and 200,000 yuan, respectively; additional rewards will be provided for upgrades.

5. Subsidies for Smart Factory Assessment and Diagnosis. For industrial enterprises above designated size with an output value of less than 100 million yuan that purchase smart manufacturing capability maturity diagnosis services from assessment and diagnosis service providers or digital transformation service providers, a full subsidy based on the actual contract amount will be provided upon successful evaluation of the report, with a maximum of 40,000 yuan.Industrial enterprises with an output value of 100 million yuan or more are encouraged to apply for the municipal “Smart Assessment Voucher” policy. For industrial enterprises included in the municipal “Smart Assessment Voucher” policy, matching support will be provided at a ratio of up to 1:1 with municipal funding, with the total support from both municipal and district levels not exceeding 40,000 yuan.

6. Matching Support. For “First-of-a-Kind Breakthrough Projects” involving high-end intelligent equipment that receive support under Shanghai municipal policies, a certain amount of matching incentive may be provided upon completion of project acceptance.

For projects with explicitly defined matching requirements, matching support shall be provided in accordance with the district-level support requirements specified by municipal departments at the time of project approval. For projects without explicitly defined matching requirements, upon consensus among relevant district departments, a reward of up to 50% of the total municipal-level project support funds received by the enterprise may be granted. The total amount of rewards and subsidies from all levels of government for a single project shall not exceed 50% of the enterprise’s total investment, with a maximum of 50 million yuan.

III. Departmental Responsibilities

1. Each sub-district administration and town shall serve as the implementing entity, responsible for accepting applications, reviewing projects, supervising the process, and providing follow-up services.

2. The District Science and Technology Commission, in conjunction with the Finance Bureau and other relevant departments, is responsible for the planning, coordination, and comprehensive management of the special funds; it shall issue annual application guidelines, organize project re-examinations, and conduct joint reviews.

3. The District Finance Bureau is responsible for the budgeting, disbursement, and supervision of the special funds, and participates in the formulation, coordination, and comprehensive management of the funding plan.

4. The District Audit Bureau is responsible for auditing and supervising the use of the special funds.

IV. Supervision and Management

1. Project Supervision

Each sub-district administration and town is responsible for conducting dynamic tracking, inspection, and supervision of projects receiving special fund support.

2. Performance Evaluation

Each sub-district administration and town shall annually compile a summary of the benefits achieved from the previous year’s project implementation and a summary of project management work. The District Science and Technology Economic Committee, in conjunction with the Finance Bureau, shall conduct the annual performance evaluation.

V. Interpretation and Effective Date

Where a project is eligible for both relevant support provisions from higher-level authorities and this policy, the provisions of the higher-level authorities shall take precedence. Any shortfall identified upon comparison with this policy after implementation may be supplemented accordingly.

This policy shall be implemented in conjunction with other district-level policies in accordance with the principle of “selecting the most favorable option and avoiding duplication.”

The annual application guidelines for this policy shall be uniformly issued by the District Science and Technology Commission. This policy shall take effect on July 15, 2023, and remain valid until December 31, 2025. For projects conducted between January 1, 2021, and July 14, 2023, that meet the requirements of this policy, implementation shall be carried out in accordance with this policy.

If new regulations are issued by the national or Shanghai municipal governments during the implementation of this policy, the policy shall be adjusted and implemented in accordance with the new regulations.