Lin-gang Special Area in Shanghai, which is approaching its sixth anniversary, has emerged as a trailblazer in China's drive for higher-level reform and opening-up, leveraging institutional innovation to break barriers and foster global competitiveness. In the six years since its inception, Lin-gang has strived to become a pacesetter, with 166 innovations recognized as groundbreaking institutional innovation cases, including 79 national firsts.

The area has made major innovations in facilitating cross-border data flow. Previously, businesses faced policy and regulatory hurdles in transferring data between countries. Lin-gang has addressed this by pioneering a system that allows companies to legally process data collected overseas locally, before delivering it to international clients. This has attracted over 20 enterprises to engage in similar data processing services, with Lin-gang launching an international data processing hub to provide comprehensive policy support.

In addition, Lin-gang has responded swiftly to national policies, such as the pilot program to liberalize foreign investment in value-added telecom services. By setting up a dedicated service platform, Lin-gang has assisted three foreign-invested companies in obtaining pilot licenses, enabling them to enhance their digital solutions for global trade.

Lin-gang's commitment to international standards is further exemplified by its expedited customs clearance policy in the Yangshan Free Trade Zone. The policy allows goods to enter and exit the zone without customs declarations, significantly reducing time and costs. Since its expansion last November, the policy has cut overall customs clearance time from two days to just two hours, slashing costs by 50 percent and boosting trade efficiency.

The Yangshan Free Trade Zone in Lin-gang Special Area, Shanghai. [Photo/WeChat ID: shlgguanweihui]

Moreover, Lin-gang is strengthening its special economic functions. It facilitated the country's first non-resident merger and acquisition loan, allowing a local tech firm's overseas subsidiary to acquire a foreign sensor business using a 148-million-yuan ($20.59 million) loan from SPD Bank Shanghai. This financial liberalization supports domestic companies in integrating deeper into global value chains.

The area is also making strides in offshore trade and reinsurance. Policies like the extension of stamp duty exemption for offshore trade and the launch of a comprehensive reform pilot for offshore trade financial services have spurred rapid growth in the sector. Lin-gang now hosts over 100 offshore trade firms, with trade volume surging by 23.6 percent year-on-year in the first half of this year. In reinsurance, Lin-gang is developing a centralized data and information service platform to enhance risk management and operational efficiency, aiming to set new standards in the global reinsurance market.

Shanghai International Reinsurance Exchange. [Photo/WeChat ID: shlgguanweihui]

Lin-gang is also nurturing an innovative and entrepreneurial ecosystem. Initiatives like the 12 new measures for innovators and entrepreneurs provide support and funding for startups. The "grant-to-investment" pilot program offers up to 5 million yuan in government support to selected teams, easing cash flow pressures during the critical early stages of innovation.

A block focusing on innovation and entrepreneurship by Dishui Lake in Lin-gang. [Photo/WeChat ID: shlgguanweihui]

As Lin-gang approaches its sixth anniversary, its relentless pursuit of institutional innovation not only propels it toward achieving its strategic goals but also enhances its appeal as a hub for talent and enterprises, fostering a vibrant ecosystem for youth entrepreneurship and technological advancement.