Blueprint to attract multinational business
Jing’an, a preferred entry-point for overseas business to Shanghai, is looking to make itself more attractive to multinational companies.
A new government blueprint reveals Jing’an intends to add 10 global service agencies, 12 multinational company regional headquarters and introduce eight projects which will boost government coffers to the tune of hundreds of million yuan in tax revenue each year.
The district released a set of favorable policies earlier this year to improve its business environment.
In January it issued measures to encourage service agencies with global influence to settle in Jing’an.
Multinational service agencies that settle in Jing’an, such as securities, banks and law firms, will receive financial assistance up to 5 million yuan (US$774,500) and an annual rental subsidy up to 1.5 million yuan.
If they just set up branches and representative offices in Jing’an, they will receive up to 1 million yuan. If they expand business and help form an industrial chain in Jing’an, they will receive up to 5 million yuan.
The government this month released new measures to encourage more multinational companies to set up regional headquarters in the district.
Companies that set up Asia-Pacific regional headquarters or global business networks in Jing’an can receive financial assistance of 3 million and 6 million yuan respectively.
The financing can be used to open businesses, pay rent or decorate offices. Companies that make greater economic contributions to the district can receive additional favorable policies.
Additionally, the Jing’an government will help companies with local regional headquarters upgrade to global headquarters and provide opportunities to take part in pioneering projects.
Jing’an plans to build close ties with influential companies and businessmen at home and abroad.
Last year, 11 people were recruited as district “investment ambassadors.” They include William Gong, vice chairman of KPMG China, and Stefano Mologni, chairman of Italy-China Fashion & Creative Council.
Last month, another 14 people, from law offices, accounting firms and real estate development, become the district’s second batch of “investment ambassadors.” Furthermore, 13 companies, including IKEA Food, signed contracts to set up offices in Jing’an. And the district’s commerce commission has signed strategic agreements with five companies to strengthen business-development cooperation between the government and businesses.
At the end of 2020, Jing’an was home to 88 regional headquarters of multinational companies, which contributed 14.3 percent of the district’s total tax revenues.
Last year, 3,885 companies registered in Jing’an — a year-on-year increase of almost 7 percent — including French skincare company Clarins’ e-commerce division, the Asia Pacific headquarters of the world’s leading video game developer Riot Games and the eastern China headquarters of Huawei’s maritime business.