Pudong's high-quality growth earns praise

Efforts by the Pudong New Area to deepen its reform and opening up and promote high-quality growth over the last few years have achieved the desired result and earned plaudits and trust from multinational companies based in the area.

In July 2021, the State Council of China issued its Opinions of the Central Committee of the Communist Party of China and the State Council on Supporting the Pudong New Area's High-level Reform and Opening-up and Building a Leading Area for Socialist Modernization.

Pudong has made significant progress since then, thanks to its dedication to its strategic positioning as a pioneer in higher-level reform and opening up, a benchmark for independent innovation and development, a global resource allocation hub, an exemplary guide for expanding domestic demand, and a demonstration model for modern urban governance.

By July, 413 of the 450 tasks indicated in the area's Implementation Plan of the Opinions had been completed or were in the final stages, accounting for a 91.8 percent completion rate.

"The Pudong New Area, as a forerunner of China's financial reform, provides a platform for many international financial institutions to demonstrate their innovative strength," said Cline Zhang, Citi China's head of Cash Liquidity and head of the Shanghai Branch. "Leveraging the piloting policies of the China (Shanghai) Pilot Free Trade Zone, we are excited to bring more new liquidity management solutions to our corporate clients."

Citi, which established a presence in China in 1902, became one of the first multinational banks to be incorporated in the country in 2007. Today, the US-based bank services 70 percent of the Fortune 500 corporations in the market, as well as hundreds of local businesses and many more emerging new economy companies.

Citi clients can now accelerate their international expansion in Pudong as a result of a number of policy measures aimed at improving the business environment and creating a successful financial market.

"How to maximize the capital of company groups and reduce financing costs effectively is always of particular concern to our clients," Zhang said. "Previously, when companies had cross-border lending for foreign debit, they had to register with the State Administration of Foreign Exchange (SAFE) on a transaction-by-transaction basis and open a special account.

"They can now integrate funds between their overseas subsidiaries and the headquarters on an as-needed basis by using PBOC and SAFE's cross-border cash pool solutions and realize the mutual exchange of funds inside the group via an in-house banking institution."

"In 2022, one of our clients, a well-known multinational high-tech company, implemented the cross-border cash pool solution. They stood out among 416 nominations in the Adam Smith Asia competition and were eventually given the 'Highly Recommended Best Funding Solution' due to the cross-border cash pool solution," Zhang said.

Pudong has seen tremendous growth in businesses of all kinds over the last two years. The area has welcomed 59 new regional offices of international corporations, raising the total to 432.

"The Pudong New Area's commerce committee approved Shanghai Shen-Mei Beverage and Food Co Ltd as the regional headquarters in January 2020, which entitled the company to a slew of financial supports," said Tian Feng, director of public affairs and communications for Swire Coca-Cola Shanghai Shen-Mei Beverage and Food Co Ltd.

"Under various enterprise-supporting policies, Shanghai Shen-Mei has been given a broader space for development and more diversified opportunities for its growth, transformation, and deep cultivation in Shanghai," Tian said.

In addition, the Shanghai Commission of Economy and Informatization gave the company Shanghai Green Factory Certification in 2022 as it continues to pursue green development paths in line with Swire Coca-Cola's sustainable development strategy.

Pudong has also worked to create a favorable economic environment as well as an ecosystem of innovation and entrepreneurship for businesses, institutions, and people. The district has seen the introduction of six new medications and seven breakthrough medical devices in the last two years.

"The Pudong New Area has demonstrated its leading position in its investment and business environment," said Anita Wei, vice president of Danaher China, a global innovator in life sciences, diagnostics and biotechnology. "Besides its convenient infrastructure and efficient governance system, Pudong is working on environment-friendly issues vis-à-vis industrial development that is suitable for biopharma-related industries."

For example, Zhangjiang, the most important bio-pharma industry park in Pudong and one of China's top high-tech parks, will begin real-world data research and partially lift import and export restrictions on biological components. CAR-T and other types of special materials for R&D will undoubtedly boost the development of the biopharmaceutical sector.

"Based on the legislative authority from the central government, Pudong will be in a unique position to pilot policies and regulations that would enable innovation and industry upgrade not just for Shanghai, but for China in the years to come," Wei said.