International companies hail Shanghai's business environment and legislation

Shanghai, China’s economic center, has made significant steps to improve its business environment through initiatives such as amending rules and attracting more industry observers.

The Ministry of Commerce and the Shanghai government will share the outcomes today at the Invest in China Year Summit & Shanghai City Promotion, a high-level meeting.

This month, a revised regulation designed to boost the city’s economic environment went into force. It set a higher standard, particularly for government services.

For example, it recommended that each district consolidate administrative functions onto the “One-Stop Service” platform, assuring accurate matching of applicable conditions, required paperwork, business rules, and important reviews.

Additionally, more people have been invited as observers of the city’s business environment. The invitation is open not just to business executives, government officials, and investors, but also to people from all walks of life. In June, a legal expert committee and research center were established, and journalists were summoned to organize a league, to improve the city’s economic environment to international standards.

Emerson

According to Jennie Li, vice president and general manager of Emerson China, the global technology and software company has profited from these reform efforts, which have helped it grow rapidly in China over the last 45 years.

“Shanghai has updated action plans for optimizing the business environment for seven consecutive years, addressing key concerns, challenges, and difficulties faced by enterprises, and promoting the implementation of innovative policies,” said Li.

“Through continuous policy innovation, service process optimization, and administrative efficiency improvements, Shanghai has built an international, legal, and market-oriented business environment, providing a solid foundation and support for enterprise development.”

In 1993, Emerson became the first American company to establish its investment headquarters in the city. It also chose Shanghai to be its regional headquarters, research and development center, open innovation center, and smart manufacturing plants for various business units, indicating a deep and lasting connection with the city.

The company said it will keep developing in Shanghai to improve localized research and development, production, engineering and services that meet the demand of Chinese customers. And digital transformation and sustainable development will be the path leading to success.

“Open, innovative, and international” are the three characteristics that best describe Shanghai’s corporate environment, according to Li.

Bayer

Zhou Xiaolan, global executive vice president of Bayer’s pharmaceutical division, president of the pharmaceutical division of China, and president of Bayer China, said the Shanghai government has made tremendous efforts in policy support, infrastructure development, and talent attraction, providing a favorable environment for businesses.

“From the perspective of the life sciences sector, Shanghai has a high degree of internationalization and transparency in policies, a mature business cluster, and strong research capabilities,” Zhou said.

She is particularly impressed by the government’s help.

“The Shanghai government has strongly supported the pharmaceutical industry, issuing guiding documents to support the innovations of the entire value chain,” Zhou said.

“Shanghai offers numerous opportunities for global cooperation and market resources, allowing local pharmaceutical enterprises to leverage Shanghai’s platform for international collaboration, which enhances their global exposure and competitiveness,” Zhou said.

On October 16, Bayer Consumer Health launched the “China Center for Innovation and Partnership” in Shanghai. It is one of Bayer’s new global strategic innovation bases for consumer health products, aiming to promote innovation and collaboration in the fields of health and nutrition, accelerating innovation and partnership, and helping enterprises explore more self-care solutions suitable for Chinese consumers.

The center will not only empower local innovation partners but also utilize Bayer’s extensive international experience to integrate consumer needs from China, Asia Pacific, and even globally, leveraging Bayer’s global network to accelerate the internationalization of Chinese innovations.

It is a reflection of Shanghai’s unique strength in attracting global firms to locate their functional divisions in the city, which houses the largest number of multinational companies on the Chinese mainland. The Shanghai Commerce Commission reports that Shanghai has welcomed over 75,000 foreign-invested firms, including 998 certified regional headquarters.

Johnson Controls

Johnson Controls, a US firm specializing in smart buildings and energy management, is among those settling their Asia-Pacific headquarters in Shanghai.

“Our products and solutions have extensive application scenarios and market potential in Shanghai, offering excellent development opportunities for enterprises,” said Yu Ning, head of government affairs, Johnson Controls China.

“The city continuously upgrades its business environment policies, effectively reducing operating costs for companies and providing strong support for multinational enterprises in terms of economic policies, legal regulations, and market supervision,” said Yu.

For Johnson Controls, Shanghai is a city with abundant research resources, including top universities, research institutions, and a wealth of talent, providing robust intellectual support and innovative momentum for the tech industry.

Shanghai also has a comprehensive industrial system, with numerous advanced manufacturing and modern service enterprises, offering a broad market and rich scenarios for the transformation and application of technological achievements, promoting deep integration of technology and industry.

“The Shanghai government places high importance on the development of the tech industry, implementing a series of policy measures to increase investment in research and development. It provides tax incentives, funding support, and talent recruitment assistance for tech companies. These policies create a favorable environment for innovation and entrepreneurship, attracting numerous tech companies and talent from around the world to Shanghai, thus driving the vigorous growth of the tech industry,” Yu said.