by YANGSHU Hongji

For companies operating in Shanghai, 2025 brought fewer inspections, faster approvals and less paperwork — changes that mattered more in daily operations than in policy language.

Several firms say the way regulation was delivered and enforced became more predictable, reducing administrative disruption and allowing management to focus more on production, research and expansion.

External benchmarks broadly align with that experience. World Bank survey data released late last year placed Shanghai at the top of the global rankings across 22 business environment indicators.

The review comes as Shanghai rolls out its 2026 business environment reform plan, after completing all 58 measures set out the previous year.

From incentives to automation

One pillar of Shanghai's 2025 reform push was the expansion of so-called "no-application-needed" policies, under which eligible companies receive government support automatically, without filing paperwork.

By the end of November, more than 600 policy programs had been integrated into the system, benefiting companies more than 6 million times, according to municipal data. The approach relies on data-sharing across government departments to identify qualifying firms, reducing the need for manual applications.

For technology-focused manufacturers, the change has been felt at the operational level. Bioyond Robotics, a Shanghai-based robotics and automation company, said the system lowered administrative costs and allowed management to focus more on research and market expansion.

"R&D requires long-term investment," said YAN Wenzhou, the company's chief product officer, adding that smoother policy delivery had reduced day-to-day administrative friction.

Beyond incentives, Shanghai adjusted how approvals and public services are handled. Authorities cut back on mandatory expert reviews, standardized assessment criteria and shortened approval cycles, reducing reliance on intermediaries.

The city also widened access to social security services through partnerships with commercial banks, allowing companies and employees to complete routine social insurance procedures at bank branches rather than government offices.

Infrastructure reliability and enforcement

Alongside changes to administrative processes, the city has also focused on infrastructure reliability and legal enforcement as part of its business environment reforms.

The World Bank survey reported zero power outages in Shanghai in both frequency and duration, a metric that has become increasingly relevant for advanced manufacturing and data-intensive operations. State Grid Shanghai has expanded customized energy-service packages, allowing companies to better manage consumption and costs.

For firms with heavy power usage, the operational impact has been tangible. QIAN Xufeng, an executive responsible for facilities management at IKEA in Shanghai, said companies can now select customized energy services based on their own needs, while gaining timely access to policy incentives and technical guidance.

"That gives companies more professional support in controlling operating costs," Qian said.

Intellectual property enforcement has been another focus. In one case last year, Shanghai police dismantled a network producing counterfeit consumer goods, seizing more than 10,000 fake products and arresting 32 suspects. Authorities say nearly 600 IP-related criminal cases were handled in 2025.

Fewer inspections, less disruption

Shanghai has also moved to curb excessive regulatory inspections, a frequent complaint among manufacturers and exporters.

In 2025, the city expanded a pilot program modelled on authorized-operator principles, allowing compliant industrial firms to face fewer on-site inspections and prioritizing remote checks. Low-risk companies can now operate for up to three years without routine inspections.

Municipal data show overall inspection volumes fell by more than 40% year on year, while business satisfaction with enforcement exceeded 99%.

For Warom Technology, an industrial equipment exporter, the change reduced operational uncertainty. "Even when inspections are justified, preparation can disrupt production," said LI Jiang, the company's general manager. "Fewer checks make planning more predictable."

Labor supply and non-operational risks

Labor availability has been another pressure point. Shanghai expanded its "15-minute employment service circle" last year, embedding recruitment and training services into community centers. Authorities say the initiative helped fill more than 12,000 positions at key enterprises.

The city has also addressed what companies describe as non-operational risks, including malicious consumer complaints and online extortion.

Several listed consumer-goods companies reported being targeted by professional complainants filing repetitive regulatory reports to seek settlements. In response, Shanghai introduced guidelines allowing regulators to identify and dismiss bad-faith claims. One cosmetics group said complaint volumes fell by about half after the rules took effect.

Online reputation risks have drawn similar attention. During a year-long campaign to clean up the business information environment, Shanghai's internet regulator ordered the removal of more than 430,000 pieces of allegedly infringing content and shut down thousands of accounts linked to extortion attempts.