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Shanghai Municipal Government Press Conference Memo (December 22, 2004)
10/1/2005 16:47

Today's press conference is Shanghai Municipal Government's last one of this year. Thank you all for braving the rain to attend today's press conference. First of all, I want to thank all the reporters and media for your support and cooperation for my work, and your high attention and prompt reporting of government work. I wish you all a Happy New Year!
I will specifically mention our excellent work team from the Information Office of the Shanghai Municipality. They are Miss Li Rong, Mr. Sun Weixing, Mr. Zhao Lixin, Mr. Shen Liang, Miss Pang Jie, Mr. Ji Yuping and Miss Chen Yijia. Over the past year, their tremendous efforts have ensured the smooth operations of the local government spokesman system and warmly assisted reporters from both home and abroad. May I suggest that all reporters join me in expressing our respect and appreciation for their outstanding work over the past year.

1. Phoenix Satellite Television: It was mentioned in the previous conference that as of January 1 next year, the people from Hong Kong, Macau and Taiwan will be allowed to run individual businesses on the Chinese mainland. Can you explain more to us? Shanghai has relaxed entry policies for four classifications of foreigners. Can you provide us with the details?

Jiao Yang: Whether the entry and exit policy is relaxed for some foreigners is based not on local, but national uniform regulations. The Shanghai Public Security Bureau has confirmed that they have actually relaxed visa procedures and time limits for some foreigners.
The new regulations ease both the times and durations for obtaining visas for four classifications of foreigners: first, foreigners with Chinese citizenship, expatriates living in China permanently,  friends, parents of foreign students studying on the Chinese mainland and their children under 18 who have foreign nationalities; second, foreigners 60 years old or older who have no direct relatives abroad and who are dependent on direct relatives in Shanghai; third, overseas Chinese 60 or above buying properties in Shanghai; fourthly, foreign children left in the care of local residents.
For the details concerning the new times and durations for obtaining visas, please consult the entry and exit administrative department of the Shanghai Public Security Bureau.
As to your first question, our work team gave the answer after the previous conference, so we will not repeat it now.

2. Shanghai Morning Post: As to the management of parking lots, can you tell me whether the parking fees both above and under ground will be adjusted? You have mentioned that ground-level parking fees will be higher than those under ground. How much higher will they be? According to the information, different fee standards will be set for different times and different areas. Does that mean that the city will implement parking charges based on time of use? In such a city as Shanghai, establishing multi-layer parking lots can ease the parking difficulties. What is the local plan for that? Can you give us an over-view of the construction plans for local parking lots? With New Year's Day and Spring Festival approaching, a peak buying period is expected. Beijing has issued regulations governing shopping coupons. Will Shanghai follow suit?

Jiao Yang: Your have too many questions, but they can be classified into two groups: one is on parking charges and the other is on the planning of parking lots. First of all is the issue on the pricing system. We know that price is a lever for market adjustment. However, for many reasons, the local parking pricing system has many deficiencies, such as the small price differences between parking inside and outside the local ring roads, and the failure to use pricing strategies as a lever to balance the parking supply and demand. As a result, the situation has worsened, creating more parking difficulties and traffic jams in the downtown areas.
To deal with the problem, the new Shanghai Parking Lot Administrative Regulation has two principals for parking charges: First, parking will be charged according to the government fixed prices, government guideline prices and market adjustment prices. Street-level parking lots will be charged according to the government fixed prices; parking lots solely owned by foreign investors and public parking spots will be charged according to the market prices; government guideline prices will be charged for parking lots in public buildings, residential quarters and private parking lots. Compared with government fixed prices, guidline prices allow price fluctuations on certain scales. Second, in the same area, street-level parking fees are higher than those in parking lots, with different charges at different times. Parking on the streets can be charged on the basis of duration and times. If calculated on the basis of duration, the fees will increase with time, or parking can be allowed for only a restricted time limit.
As to the planning of parking lots, in 2002, Shanghai presented a plan for the parking of motor vehicles in key areas, adding public parking lots in 14 local downtown areas. To date, the number of public parking lots which have completed, are being constructed, and are in the planning stage total nearly 20.
The Shanghai Transportation Bureau is drawing up several files for local transportation plans and public parking lots in downtown areas, with different supplies of parking lots in different areas. The number of parking spots downtown will be strictly controlled; areas with average volumes will have fewer lots; a balance of supply and demand for parking spaces should be maintained between the city's Inner and Outer Ring Road, and the demand of parking lots outside the Outer Ring Road will be met.
As to the shopping coupons during the holiday, Shanghai will strictly stick to the national regulations, requiring businessmen and managers to operate according to the national laws. Government departments will standardize the market operational orders and activities and supervise the market according to the law.

3. Reuters: Despite the Supreme People's Court's tougher stand on intellectual property crimes, pirated versions of world renowned names are still available at the local Xinagyang Road market.  What measures will the Shanghai municipal government take to handle the situation?

Jiao Yang: What you are referring to is the policy the Supreme People's Court announced yesterday.  On this issue, Shanghai has adopted a clear position, one of strictly abiding by the IPR protection rules and laws and sternly cracking down on fake products and IPR infringements. 
We have noticed that the situation you mentioned does exist in some areas in Shanghai, particularly at commodity fairs.  The local industrial and commercial department has begun stricter inspections and crackdowns.  Any case that is discovered will be investigated and and the criminals punished.
However, the situation may not totally disappear because the manufacturing and selling of fake products is a complicated process.  Fake products sold in Shanghai could have been produced outside of the city, for example. 
The Supreme People's Court's new regulations reflect the country's positive attitude toward preventing IPR fraud. Shanghai will abide by the national rules and laws and crack down on fake products and IPR crimes.  To be more effective in this campaign, we will improve cooperation with the provinces nationwide.

4. East Radio News Channel:  My question is about the parking fees.  You said that the fees would be set at three different levels: the government set rate; the government guidance rate; and the market rate. Will the prices be higher or lower than the current fees? Or will they remain unchanged?

Jiao Yang:  I've said the charges will definitely change.  The current charges in Shanghai are abnormal, as the charges at some roadside parking lots are higher than those at indoor facilities, and fees are almost the same in the downtown and the suburbs.  In this case, the charges will be changed.  The related government departments will determine the specific rate changes based on the parking regulations.  The pricing will be used as a lever to help solve the city's parking problems.  Officials with Shanghai's transport administration department are at this meeting today and will take public opinions into account when setting pricing guidelines.

5.  News Times: You mentioned that the city would launch an intelligent parking information platform when addressing the new parking regulations.  Why will Shanghai set up such a network?  And will Shanghai allow diversified types of investments to create the parking facilities?

Jiao Yang: Intelligent information management is a trend in parking management.  Now, because of inadequate information exchanges between parking facilities and vehicles, some parking resources are not fully used and other spaces remain idle.  In this case, the Shanghai Parking Lot Management Regulations state that Shanghai will set up a public parking system information network. The local traffic administration watchdog and related traffic departments will write the standards and regulations for the public parking information system.  Meanwhile, it will require local public parking facility operators to abide by the regulations and standards and input the parking business data to the city's public parking information system for a unified publication.  This will help drivers to park their vehicles by providing complete and timely parking information.

The answer to the second question is definitely positive.  Shanghai is encouraging diversified forms of investment to build parking facilities and to encourage the development of non-public parking facilities for the public.


6. OTV: One of the abnormal phenomena you mentioned is that the parking fees are almost the same in the downtown and the suburbs.  Will the government reduce the price gap by setting government guidance rates?  And when will the new parking rules take effect?

Jiao Yang:  In answer to the first question, the reporter's analysis is correct.  Price levers should be applied in different regions to adjust supply and demand.  Since the downtown road traffic resource is a public resource in short supply, we must take certain measures, including pricing, to affect it.  The parking management regulation was passed at the municipal government's regular meeting, but it needs more specific rules.  It will soon be published and implemented.

7.Shanghai Economic Daily: Does the new parking management regulation contain any controls over the hike in parking fees in some residential areas?

Jiao Yang: As the residential parking lot is for a specific use, the local government can supervise, but not set the fee.  Residents may complain about this issue to the related property or parking management office of the community as they must adher to a reference standard given by the municipal government.

8.STV(Shanghai Television) News: One of the 22 regulations on keeping traffic smooth published last year mentions the promotion of parking meters.  Can you tell the current thinking on this issue?

Jiao Yang: Parking meters are very popular in other international metropolises.  The installation of parking meters is under consideration by the related departments.  Car owners must stick the fee receipt in a visible area on the front windshield when leaving their cars in  parking lots equipped with parking meters.  The detailed regulations will be published later by the municipal Bureau of Communication and the public security transport management department.

9.Oriental Morning Post: How will the municipal government encourage investments in parking lots,and how many has the government itself invested in?  Are diversified forms of investment encouraged in this issue? Do you provide any favorable policies for investors?  Also, can you talk about the cancellation of the charging window in Hongqiao Airport? It's said there was some disagreement relating to this change between government and the related enterprises.  Is that true?

Jiao Yang: As for your question of the second issue, I know less than you do.  It's a historical problem and still under discussion.  
Except the road parking areas that will be under the charge of the municipal government, others, including those attached to  shopping malls, residential areas and social parking lots, welcome diversified forms of investment and will be operated  by adhering to the market economy rules.

10.Youth Daily: What are the starting dates for the new administrative regulations on the issues of parking lots and outdoor ads facilities you mentioned just now? As for next year's government work, the official web sites have conducted several surveys on figures and opinions.  So when will the detailed work items be launched?  

Jiao Yang: The new Shanghai Parking Lot Administrative Regulation needs more specific rules, but will soon be published and implemented.  The Shanghai Outdoor Ads Facility Administrative Regulation will become effective next Feb. 1.  The 2005 government works are still under recommendation and must be settled by the related departments.  I believe they will be published soon after we finish inviting the public opinions.

11. Shanghai Finance News: Preparations are now in hand to establish an online transaction system for used housing. Will it hurt local real estate agencies?

Jiao Yang: The government is building an online system which will provide transparent housing information. On the basis of this platform the city will also create an online transaction system for used houses. All the steps necessary for used housing transactions (housing information publication, deal negotiation, contract signing, property registration, etc.) will be completed online. As an effort to make the non-profit transaction system safe, convenient and efficient, the website will also provide financial, notary and evaluation services for housing transactions.

The development of real estate agencies, which is essential to the local housing market, always remains high on the government's agenda. Following the government policy of promoting local secondary and tertiary real estate markets, in August of 1996 the Shanghai Housing and Land Resources Administration set up real estate transaction centers at city, district and county levels. Many agencies that opened branches in these transaction centers at that time have developed into well-known companies.

Local real estate market should keep abreast of the times. Quite a number of real estate agencies will post housing information online in the future. The online transaction system will adopt a series of measures for the convenience of the people. House sellers can put housing information online without any charge. The website will also help home buyers choose real estate agencies since agencies can put their housing information online. E-business is the trend of the times, which real estate agencies should comply with. On the other hand, Housing information will be put online by real estate agencies on a voluntary basis. The online transaction system can not be established at once and will be improved gradually. 

12. Real Estate Times: As an institution, local real estate transaction center undertakes the creation of the online transaction system. Will the center be able to handle online fraud cases? Secondly, you said before that the government would keep a close watch on overseas investment in the local real estate market. How are things going now?

Jiao Yang: The online transaction system can not be established at once and will be improved gradually. Housing information will be put online on a voluntary basis. We will take measures to guarantee the truthfulness of online housing information. As to the second question, I have said before that the proportion of domestic investment to foreign investment in local real estate market is reasonable. I have no additional remarks to make.

13. Shanghai TV Station: Will the new regulations for outdoor advertising signs increase penalties for illegal activities?

Jiao Yang: Laws and regulations must be strictly enforced. Under the new regulations, those who violate the sanitation clause will be punished by the local sanitation administration (including sanitation authorities at city, district and county levels); those who violate urban planning clauses will be punished by local urban planning authorities; those who breach clauses relating to the administration of industry and commerce will be punished by Shanghai Administration of Industry and Commerce. The government shall manage local affairs in accordance with laws. On the other hand, laws must be obeyed.

14. Oriental TV Station: I'm interested in the question raised by the reporter just now. Have the new regulations set upper limits on penalties payable? My second question is on local housing prices. Are there statistics on the growth rate of local housing prices this year? Would you comment on the growth rate?

Jiao Yang: Of course, there are upper limits on penalties. I have no data on hand. My assistants will tell you after the news briefing. As to your second question, official statistics are not now available. This year's growth rate of local housing prices will be announced at the beginning of next year.