Shanghai remains a top destination for European business amid the pandemic, the European Union Chamber of Commerce said in its fourth Shanghai Position Paper released on Monday, adding it expected more support during this difficult time and further improvement of the business environment.

"Shanghai has been China's door for many European companies," Carlo D'Andrea, vice president of the European Chamber in China and chairman of its Shanghai Chapter, told CGTN. "Over 700 multinational companies have decided to set up regional headquarters in Shanghai. We remain confident in the market, to be in China for China." 

D'Andrea noted that more practical reform measures are expected in a bid to attract more investment.

European companies have a long history of making significant contributions to Shanghai's development, and they continue to play a key role in the city's globalization.

The annual report, which is based on surveys of over 600 European companies to evaluate local business and regulatory environments, said more improvements should be made to increase the city's competitiveness to fulfill its plans of becoming an international center for finance, trade, economy, logistics and innovation.

Talent attraction, tax burdens, market entry barriers and legislative unpredictability are still the top concerns for the foreign enterprises, according to the paper.

While the new local implementation regulations for the Foreign Investment Law (FIL) represent an opportunity to meet some of these challenges, there are still some vague and unclear terms for leveling the playing field for foreign enterprises.

"It is important that we see continuing development of the legal framework so as to lower market access barriers," D'Andrea said.

"Indeed it is important in this uncertainty due to the COVID-19 to have a better transparency in the rules and regulations. Especially on the predictability of these rules and regulations, it cannot change from one day to another one."

With 38 detailed recommendations on how the local government can address the challenges of the local business environment and unlock further development potential, the Shanghai Position Paper said Shanghai can learn from other cities' pioneering reforms, like Shenzhen.

The chamber urged Shanghai to take a deeper look at problems faced by the small and medium-sized European companies that were affected the most by the pandemic, including how to facilitate their financing.

"We have to move forward, especially when it comes to enhancing the ecosystem for small and medium enterprises. After all, the small and medium enterprises of today can become the multinational companies of tomorrow," said D'Andrea.

Shanghai released the first regional implementation regulation for the national FIL on September 30.

Comprising 51 measures, the regulation aims to further open up market access, attract and facilitate foreign investment and protect legitimate rights and interests of foreign investors.

The regulation, which took effect on Monday, include full implementation of the national treatment and negative list system stipulated by the FIL.

The regulation also directs further relaxation of restrictions on foreign registered capital and investment methods, especially in the Shanghai Free Trade Zone.

China's FIL came into effect on January 1 this year and the country's 2019 negative list and catalog for encouraged foreign investment came into effect from July 31.