The municipal government of Shanghai certified 20 regional headquarters of multinational corporations (MNCs) and 10 research and development centers in the city, showing the metropolis’ enduring attraction as an investment destination for foreign firms. “In the last 10 years, we’ve invested over CNY6 billion in China. We are continuing to invest here because we believe in the country and the opportunities for all of us,” said Allan Gabor, President of Merck China, one of the multinational corporations with a newly certified regional headquarter in Shanghai. As Gabor stated, the reason the company set up its regional headquarter in Shanghai is very simple – Shanghai and the Yangtze River Delta region have spared no effort in creating a prime business environment, the China Daily reports. “As the nation’s economic center, Shanghai is substantially attractive to international companies, where they can explore tremendous business possibilities in the city,” said Qi Xiaozhai, Vice Chairman of the Commerce Economy Association. As Shanghai is building itself into a center for economy, finance, trade, shipping and technological innovation, the prospects are bright for international corporations to build and expand their presence in the city, Qi added.
Shanghai’s actual use of foreign direct investment (FDI) rose 0.4% year-on-year to USD23.96 billion in 2022 and the city solidified its position as the best place for foreign investment on the Chinese mainland. As of 2022, Shanghai is home to 891 multinational corporations’ regional headquarters and 531 foreign-funded R&D centers.
“In the past few years, even during the Covid-19 period, we have continuously increased our investment in China, in Shanghai in particular,” said Yu Feng, President of Honeywell China. The company's Asia-Pacific HQ was in the first batch of certified multinational corporations’ regional headquarters two decades ago, and the company’s business expanded vigorously in the country, covering aerospace, building technologies, performance materials, safety and productivity solutions. With its net regional HQ certified, Tyson Foods is another enterprise that has always recognized China as one of its most important markets. According to Wu Tong, President of U.S.-based Tyson Foods’ China and South Korea operations, the company invested in three new plants even during the Covid-19 pandemic. The Shanghai HQ also serves as an R&D and talent-sharing hub, as well as a financial center for the company.
Likewise, Switzerland-based automotive technology company Garrett Motion completed the injection of USD50 million of foreign capital into Chinese investment companies in 2022. It is committed to R&D and expansion in high-tech fields for the future, according to Zhang Yue, Vice President of Garrett Motion. Through investment in new technology and project implementation, such as electric turbo-charging, hydrogen fuel technology and intelligent connected vehicle software, the development of new energy and smart connected mobility has accelerated, Zhang said.
The municipal government has set an ambitious target of hosting a total of 1,200 MNC regional HQs in the coming five years, according to its work report delivered by Shanghai Mayor Gong Zheng during the first session of the 16th Shanghai Municipal People’s Congress in early January. According to Zhu Yi, Deputy Director of the Shanghai Municipal Commission of Commerce, the municipal government will spare no effort in strengthening communications with foreign enterprises and providing a better business environment, to allow companies around the world to enjoy great opportunities in the China market, the China Daily reports.
