Key Points:

  • Municipal Economic Commission and Shanghai COFCOM will combine to form a Municipal Commission of Commerce
  • Larger integrated departments designed to enhance efficiency  

In October, following the organizational reform of the State Council, the Shanghai government adopted a localized plan of organizational reform, to combine related government agencies into larger departments to enhance efficiency and avoid overlapping or uncovered functions.  

The following four changes may be of interest to businesses:

  • The Municipal Economic Commission, the approval authority for domestic investment, and the municipal Foreign Economic and Trade Commission/Municipal Foreign Investment Committee, also known as Shanghai COFCOM, will combine to form a Municipal Commission of Commerce to integrate the investment approval functions. This agency will handle all future approval of foreign investment projects in lieu of COFCOM.
  • The Municipal Labor and Social Security Bureau will be renamed the Municipal Human Resources and Social Security Bureau, and will be in charge of medical insurance and administration of civil servants.
  • The Municipal Hygiene Bureau will take charge of the Municipal Food and Drug Administration.
  • The Municipal City Planning Bureau and the Municipal Land Resources Bureau will be combined to form a Municipal City Planning and Land Resources Bureau. This combination is expected to simplify real estate issues and enhance efficiency.