MNCs keep the faith in Shanghai as key HQ destination

By HE WEI in Shanghai | China Daily | Updated:May 25, 2021

60ac4c2aa31024adbdc9de7b.jpeg

Tourists take photos at the Bund area of Shanghai. [Photo by Wang Gang/For China Daily]

Shanghai recognized on May 24 a new batch of multinational \r\ncorporations that set up their regional headquarters or research and \r\ndevelopment centers in the city, a move further cementing its position \r\nas the magnet attracting foreign businesses.

A ceremony attended by mayor Gong Zheng certified 30 MNCs' regional \r\nheadquarters and 10 R&D hubs, with business executives touting \r\nChina's allure as an investment destination thanks to market vibrancy \r\nand favorable policies.

During the first two months of the year, Shanghai saw actual \r\nutilization of foreign capital jump 20.3 percent on a yearly basis to \r\n$7.78 billion. That was up 25.2 percent over the same period in 2019, \r\nbefore the COVID-19 pandemic hit.

The first four months also saw 20 newly-added MNC regional \r\nheadquarters and seven R&D centers. With this, the total number of \r\nheadquarters and R&D hubs in the city rose to 791 and 488, \r\nrespectively, both of which rank first nationwide.

Zong Ming, vice-mayor, said: "We will continue to unswervingly \r\npromote all-around opening-up to support foreign-funded enterprises \r\nachieve greater development in Shanghai, through comprehensive \r\nempowerment with higher strength, precise services and legal guarantee."

According to the Municipal Commission of Commerce, the latest batch \r\nof enterprises are mostly well-known industry pioneers, such as Saudi \r\nArabian chemicals firm SABIC, and ASML from the Netherlands, which \r\nmanufactures photolithography systems key to the semiconductor industry.

"The strategic position of Shanghai is key to our group's \r\ndevelopment," said Song Wangqiu, president for the Asia-Pacific region \r\nat Metsa Group, a Finnish forest industry group that has chosen Shanghai\r\n as its APAC headquarters.

The Asia-Pacific region accounts for a fifth of Metsa's revenue. The \r\ncompany said it has enjoyed double-digit revenue growth in the region in\r\n recent years, and its suite of carbon reduction products and solutions \r\nare in line with the nation's pledge for greener growth.

Liang Rui, vice-president and head of robotics division in China of \r\nSwiss industrial conglomerate ABB, said: "We have been optimistic about \r\nthe market since we first entered China in 1994. We are actually among \r\nthe very first foreign companies to introduce both R&D and \r\nmanufacturing to China. The government policies have always been \r\nfavorable across all levels. They are particularly helpful in cutting \r\nred tape and expediting our process to operate locally and smoothly."

Beverage and snack giant Pepsi-Co Foods sees China as a crucial \r\nengine in its global strategy, and the choice of Shanghai as China \r\nheadquarters marks an important step to fulfill the strategy and \r\nnavigate the market, said Anne Tse, general manager and senior \r\nvice-president of PepsiCo Foods in China.

She applauded the municipality's improving business environment, such\r\n as reduced duration needed in getting business licenses, as well as \r\nfavorable talent policies to allow top-notch candidates to live and work\r\n in Shanghai.

Foreign direct investment in actual use in the Chinese mainland rose \r\n39.9 percent on a yearly basis to 302.47 billion yuan in the first \r\nquarter, according to the Ministry of Commerce. The volume surpassed the\r\n pre-COVID level, rising 24.8 percent from the same period in 2019.

copyright © Shanghai Municipal Commission of Commerce. All rights reserved. Presented by China Daily. 沪ICP备2021016245号-2