City home to more foreign firms

Latest moves see Shanghai cement position as ideal investment destination for multinationals

Shanghai is further consolidating its position as an ideal foreign investment destination by certifying 30 regional headquarters of foreign corporations and 10 research and development centers on March 21, with factors including its solid economic foundation, business environment, and rich talent pool serving as great draws for multinational firms, said senior executives.

According to the Shanghai Municipal Commission of Commerce, the city was home to 1,027 foreign corporations' regional headquarters and 597 foreign-funded R&D centers as of the end of February.

"As a Philippine company starting to develop in Shanghai as early as 1993, we are the witness and beneficiary of China's reform and opening-up," said Li Peiming, executive vice-president of Liwayway (China) Co Ltd.

"Thanks to Shanghai's open and inclusive policy, we've benefited from the relaxed business environment and achieved development globally through our platform in Shanghai," Li said.

US-based consumer health company Kenvue also benefits from Shanghai's exceptional business environment, and made the city its top choice when selecting its headquarters for the Chinese market, said Gift Arpaporn Samabhandhu, president of Kenvue China.

Alongside local government support, the city's robust economic foundation, rich talent pool, and high level of openness, the company has achieved effective localization and high-quality development over the past nearly four decades, Samabhandhu said.

Kenvue was among the first foreign-funded enterprises to settle in Shanghai. The firm located three of its four Chinese factories and an R&D center in the city, Samabhandhu added.

"Shanghai offers one of the best business environments for foreign-funded companies, and the city's stable policy and great talent are attracting companies like us to launch our China headquarters here," said Zong Yanping, managing director of Delonghi Appliances (Shanghai) Co Ltd.

Calling the decision a commitment to continuous investment in China, Zong said the company is extremely optimistic about the Chinese market, adding that about 65 percent of the Italian company's global business comes from coffee machines, and he sees great potential in China.

Delonghi has enjoyed the largest market share and double-digit growth in China over the past few years but Zong said there is still huge growth potential for China's coffee machine market.