On 16 August 2023 the National Development and Reform Commission published the Measures on Further Upgrading the Hongqiao International Open Hub (Fa Gai Di Qu [2023] No. 958), with the approval of the State Council. The document contains twenty-four measures and is built around three layers: the Hongqiao business district as the core, the northern and southern expansion belts, and wider integration across the Yangtze River Delta.
Regional policies of this kind are often read as investment promotion. For companies already established in the area, or planning to move there, the practical questions concern four lines: permits, capital, data and intellectual property.
The structure of one core and two belts
The first layer concentrates high-level headquarters, trade, services and exhibition functions in the Hongqiao business district. The second layer distributes industrial collaboration along the northern and southern belts. The third layer extends the division of labour across the wider delta.
That structure determines how the measures apply. A company registered in the core district, in an expansion belt or elsewhere in the delta will face different support and different conditions. Site selection should begin by matching business activities to individual measures, not by choosing a district on name alone.
Cross-border funds and headquarters
The measures support qualified multinational companies in piloting integrated RMB and foreign currency cash pooling, allowing the lead company to purchase foreign exchange within an approved quota and to centralise cross-border funds.
A cash pool is not complete once it is filed. Companies must assess the eligibility of the lead company and members, quota calculation, permitted uses, verification of cross-border receipts and payments, and currency and liquidity risk. For a group, a cash pool usually engages foreign debt, cross-border guarantees and tax arrangements, and should be designed as a whole rather than applied for point by point.
Digital trade and intellectual property
The measures encourage the development of digital content distribution, intellectual property transactions and other knowledge-intensive trade services through the global digital trade port.
For content, software, gaming and data service companies, this offers clearer industrial space. It also means that content compliance, outbound data transfer and IP ownership will be examined together. Digital content distribution requires a complete chain of copyright authorisation; IP transactions require clear title, valuation and transaction records. A business plan without the underlying rights documents will struggle at the implementation stage.
Mutual recognition of vehicle testing
The measures promote mutual recognition of intelligent connected vehicle testing licences and results within the region, and support cross-provincial road testing in the Hongqiao–Kunshan–Xiangcheng and Jiakuntai innovation zones.
Mutual recognition reduces duplicated testing costs. It does not transfer regulatory responsibility. Companies must still address testing entity qualifications, vehicle safety, data recording and geographic information compliance. Cross-provincial testing also engages local road management rules, data transmission and accident liability.
Four checks before implementation
First, map each measure to the company’s business and confirm the applicable area and thresholds. Second, model cross-border funding against quotas, foreign debt and tax. Third, prepare complete ownership and authorisation files for digital trade and IP transactions. Fourth, for vehicle testing, clarify qualifications, data flows and liability boundaries in advance.
For cross-border operations and regional policy application, see multi-jurisdiction compliance; for cross-border financing and funding arrangements, see financing and equity; for IP transactions and licensing, see intellectual property.
This note is based on the Measures on Further Upgrading the Hongqiao International Open Hub published by the National Development and Reform Commission on 16 August 2023. It is for reference only and does not constitute legal advice.