Foreign investment in Pudong is booming as it becomes a global leader
Covestro's Asia-Pacific Innovation Center in Pudong.
Foreign investment in the Pudong New Area make up nearly half of the city's total investment.
Accumulated foreign direct investment in Pudong, in actual use, has reached more than US$120 billion, about 47 to 48 percent of the city's total. It has surged from US$4.4 billion in 2015 to US$9.4 billion in 2020. This year, it aims to reach US$10 billion, according to Cao Lei, deputy director of the Pudong Commerce Commission.
Between January and June, the actual use of foreign direct investment in Pudong totaled nearly US$5.1 billion, up 8.52 percent from the same period last year. Altogether 14 regional headquarters of multinational companies were set up in the first half of this year, including three Asia-Pacific headquarters.
Pudong had its first regional headquarters of a multinational company in 2002. To date, the number of soared to 373, nearly half the city's total.
Last year, German specialty chemical firm Covestro upgraded its Shanghai headquarters to become Covestro (Shanghai) Investment Co Ltd, which undertakes more functions and business such as management, R&D, operations and investment.
It has been recognized by the city's commerce commission as the first global business unit headquarters of a multinational company in Shanghai.
"It's a milestone," Cao said.
Holly Lei, president of Covestro China, said: "Pudong stands at the forefront of China's reform and opening-up.
"It features an efficient, open and globally competitive business environment as well as a definite advantage in attracting talent.
"The upgrade of the Shanghai headquarters helps us to enhance global resource allocation, and better radiates to the Asia Pacific region."
She said this was just the first step in Covestro's plan to take a bigger bite out of the domestic market and increase investment in the city.
"We are always positive on the Chinese market," she said.
"China is Covestro's biggest market. It features financial activities in every industry. Also, China's independent innovation is so dynamic.
"China is playing a leading role in many aspects. In view of this, we will continue to invest on domestic market."
Another manifestation is that this year Covestro will take part in the 4th China International Import Expo for the first time, and it will focus on the circular economy, quite apt for China's strategy.
China unveiled a plan earlier this month to promote the circular economy over the next five years.
The plan, released by the National Development and Reform Commission, aims to basically establish a resource- ecycling system in the country by 2025 as part of efforts to achieve carbon neutrality.
"We will showcase to the world our innovative and sustainable solutions, as well as sharing all of our technical solutions," Lei said.
This month, China issued a guideline to support high-level reform and opening-up in Pudong, and build the area into a pioneer of socialist modernization.
It specified Pudong will serve as a benchmark for independent innovation and development, and become a showcase for global resource allocation.
"It's so exciting," Lei said.
"Covestro embraces a holistic approach towards innovation, and it allocates global resources based on the needs of different markets."
She said the company will explore debuting new products and solutions about unmanned driving, clean energy, artificial intelligence and other frontier research in Pudong.
Also, it will work with local government to expand the talent pool, improve financial markets, and make Pudong more globally competitive.
