Shanghai advisers urge stronger policy and service support as companies expa...

by Staff reporters

Shanghai political advisers have outlined proposals aimed at lowering costs, managing risks and improving institutional support for companies expanding overseas, as Shanghai holds its annual Two Sessions amid global uncertainty.

Submissions to the Shanghai People's Political Consultative Conference cover finance, logistics, legal services and the overseas role of social organizations, underscoring a shift in China's globalization drive from export-led growth toward longer-term overseas operations.

WANG Yunfeng: overseas expansion enters a more demanding phase

WANG Yunfeng, a Shanghai municipal political adviser and chief executive of HSBC Bank China, said Chinese companies have entered a more complex phase of going global.

Unlike earlier stages centered on exports or standalone overseas investment, Wang said the current phase is defined by supply-chain deployment abroad and localized operations. This shift, he said, places heavier demands on cross-border finance, legal compliance and risk management, including intellectual property protection.

Wang said Shanghai's existing service systems, largely built around trade settlement and initial market entry, need upgrading to support companies from early-stage planning through long-term overseas operations. He also called for closer coordination with Hong Kong, citing its strengths in financing, legal services and dispute resolution for mainland firms investing abroad.

HE Renlong: clearer routes and stronger compliance

HE Renlong, a Shanghai municipal political adviser with a background in technology and industrial services, said companies need clearer and more compliant routes for overseas expansion, particularly into Belt and Road markets.

Differences in regulatory regimes, data governance and cybersecurity rules, he said, are becoming a growing obstacle, especially for smaller firms with limited overseas experience. Stronger government guidance is needed to help companies better assess risks and avoid compliance pitfalls.

He also said companies with established overseas operations should help smaller firms by sharing compliance frameworks and operational know-how, while urging greater use of specialized professional service providers.

Cross-border e-commerce: logistics costs under pressure

A proposal submitted by advisers from the Revolutionary Committee of the Chinese Kuomintang (RCCK) and others highlighted mounting logistics constraints facing Shanghai's cross-border e-commerce exporters.

The proposal said small and medium-sized exporters face limited shipping options, high maritime costs and fragmented overseas warehousing, all of which weigh on international expansion. It called for regulatory changes to allow mixed shipping of cross-border e-commerce goods and general trade cargo to help reduce costs.

It also urged faster development of overseas warehouses and a stronger focus on non-US markets, including Europe and Belt and Road countries. Shared or public overseas warehouses were suggested to improve efficiency for smaller exporters.

Foreign-related services: high costs a hurdle for private firms

Another proposal, submitted by advisers focusing on private-sector development, said private companies often face information gaps, high fees and uneven service quality when seeking overseas legal, accounting, tax and consulting support.

Advisers suggested building an integrated service platform to pool professional resources, alongside government-backed service vouchers to lower access costs. They also called for case databases and expert mentoring schemes to help companies avoid common pitfalls when expanding overseas.

Social organizations: an underused overseas role

A separate proposal from advisers with backgrounds in law, finance and professional services said Shanghai’s industry associations, professional bodies and non-profit organizations have a limited presence internationally.

It called for dedicated funding to support participation in international standard-setting, overseas cooperation projects and global networks. The proposal also suggested linking social organizations with companies on public-interest projects in Belt and Road countries to help firms build local trust overseas.