East China cosmopolitan Shanghai made a further innovation in optimizing its business environment by introducing an authorized economic operator (AEO) system into its industrial sector, becoming the first city in China to pilot such system, according to official sources.

"By incorporating the AEO system in customs, authorized enterprises, particular key manufacturing companies, will be able to enjoy benefits including exemption from on-site inspections," said Xin Leifu, an official from the Shanghai Commission of Economy and Informatization, during a news conference on Friday explaining the city's action plan for implementing the new system.

"The first batch of 2,360 industrial companies are identified as AEO enterprises, making them eligible to enjoy convenient measures including on-site inspection exemption covering 83 administrative inspections in seven categories," Xin said.

Industry-wise, 87 are integrated circuit enterprises, 248 in bio-medicine, 22 in artificial intelligence, 632 in electronic information, 251 in automobiles industry, 793 in high-end equipment, 74 in advanced materials, and 339 are engaged in fashion consumer business.

Among these enterprises, whose combined output value exceeds 1 trillion yuan ($731.6 billion), 1,469 firms are private-owned, accounting for 62 percent of the total amount, followed by 684 foreign-funded enterprises (29 percent), and 180 State-owned ones (8 percent).

Relevant departments will constantly strengthen the follow-up work to optimize related measures, expand the pilot scope and roll out more convenient measures for AEO enterprises.

Seven government departments namely the Shanghai Commission of Economy and Informatization, Shanghai Municipal Bureau of Public Security, Shanghai Municipal Bureau of Justice, Shanghai Municipal Human Resources and Social Security Bureau, Shanghai Municipal Administrative Committee of Housing and Urban-Rural Development, Shanghai Municipal Bureau of Water Resources, Shanghai Municipal Health Commission, and the Shanghai Municipal Administration for Market Regulation jointly issued the AEO system pilot plan in the industrial sector in Shanghai earlier in January, according to Xin.