Shanghai remains an attractive proposition for foreign investors
Shanghai's downtown area is still a magnet for foreign investments despite the COVID-19 pandemic resurgence and a complex international environment, local officials said.
The foreign direct investment in actual use in Shanghai reached US$16.3 billion between January and August, a 8.4 percent increase year on year, according to Zhu Yi, deputy director of the Shanghai Commerce Commission.
Forty-six multinational headquarters were newly set up in Shanghai in the first nine months, or three quarters, along with 17 foreign-funded research and development centers, Zhu revealed.
Among local districts, downtown Huangpu is among the most attractive investment destinations for investors from abroad.
Foreign director investment in actual use in Huangpu reached US$938 million in 2021, jumping 15.4 percent on year.
Overseas investment in the downtown district between January and September 2022 surged 26 percent annually, Shen Shanzhou, director of Huangpu, told a foreign investment promotion meeting of the district on Wednesday.
Huangpu's total foreign trade volume reached 120 billion yuan this year, with record scale and growth rate, Shen revealed.
Five multinational headquarters, two overseas R&D centers and four trading company headquarters newly set up base in Huangpu.
Sumitomo Pharma, a leading global pharmaceutical company, for instance, set up its investment company in Huangpu in June.
"China is always an important strategic market to Sumitomo. The company will continue to increase investment in China no matter the changes in the international environment," said Koketsu Yoshitaka, chairman of the company.
Yoshitaka said Huangpu has created a quality environment for foreign investors in the pharmaceutical sector. The Japanese firm will celebrate the 20th anniversary of the founding of its China branch next year.
RHI Magnesita, a leading refractory material manufacturer from Austria, plans to upgrade its Shanghai headquarters into the company's Asia Pacific headquarters.
"The tax reduction policy of the Shanghai government during the COVID-19 pandemic resurgence helped the firm to recover and restore operations immediately, which reaffirmed our determination to keep developing in Shanghai," said Marco Mag Olszewsky, general manager of the company.
Chilean chemical industry giant SQM aims to set up a regional headquarters in Shanghai in 2023 to tap rising demand from China's new-energy vehicles. One of the main businesses of the company in China is producing lithium for electric car batteries.
"Shanghai involves infinite challenges and business opportunities," noted Andres Stocker, SQM Asia finance director, who has been living in Shanghai for 15 years.
He said the company will keep increasing its investment in China amid positive prospects for the Chinese market. It has set up a lithium factory in southwestern Sichuan Province.