China Daily Global Edition (USA)

Foreign businesses keep faith in Shanghai’s potential

Shanghai, which has been committed to “five centers” constructi­on — to build itself into an internatio­nal center for economy, finance, trade, shipping and sci-tech innovation — will continue to extend a warm welcome to global investors and provide fertile ground for enterprise­s to realize their ambitions.

According to Chen Jining, Party secretary of Shanghai, who attended the “Invest In China Year” and Shanghai City Promotion at the 2023 China Internatio­nal Import Expo on Nov 5, the city is a window through which the world will see China’s steps in opening-up and the strong economic prospects and opportunit­ies generated by Chinese modernizat­ion.

The Shanghai government will draw strength from Shanghai’s spirit — openness, innovation and inclusiven­ess — to promote developmen­t in all aspects of life, including the creation of the service trade innovation demonstrat­ion zone and the Silk Road e-commerce pilot zone, and support integratio­n of the chains of innovation, industry, capital and talent.

“We welcome global businesses to invest and start ventures in Shanghai to unlock the potential for innovation and entreprene­urship, immerse themselves in the city’s distinctiv­e allure and collaborat­e with us as we pave the way toward a brighter future,” Chen said.

According to Chen, the developmen­t of Shanghai’s economy showed resilience and vitality in 2023. The city’s GDP grew at 6 percent year-onyear in the first three quarters and some 353,000 new enterprise­s set up base in Shanghai, up 42 percent yearon-year.

“Shanghai is a charming city full of hope and unlimited opportunit­ies, and it is a land for entreprene­urs to pursue their dreams and make a career. We will continue to create a first-class business environmen­t that is market-oriented, law-based and internatio­nalized, provide accurate, convenient and innovative highqualit­y services, and work hand in hand with everybody to create an open and prosperous future,” said Gong Zheng, mayor of Shanghai.

As of the end of September, Shanghai was home to 940 multinatio­nal corporatio­ns’ regional headquarte­rs and 551 foreign-funded research and developmen­t centers. The city has been gaining popularity among foreign investors and multinatio­nal corporatio­ns, Gong said.

Smooth sailing

MSC Mediterran­ean Shipping Company SA, one of the world’s largest container shipping companies headquarte­red in Geneva of Switzerlan­d, entered China in 1998 and set up its first office in Shanghai. Leveraging the rapid growth of the Chinese shipping industry, MSC has experience­d remarkable expansion over the past 25 years. At present, the company boasts an extensive network of 27 offices throughout the

Chinese mainland, bolstered by a dedicated workforce of more than 1,300 employees.

“MSC calls at around 20 ports in China, operating more than 40 mainline services and 10 intra-Asia routes, connecting businesses in China with the world,” said Jonathan Zhu, managing director of MSC Greater China.

Shanghai, which is on track to be an internatio­nal shipping center and where the company has deep roots in the nation, plays a vital role in supporting MSC’s expansion in China, according to Zhu.

“As shipping is one of Shanghai’s key focal points for developmen­t, we are fully committed to aligning ourselves with the city’s goals. Shanghai boasts a robust business environmen­t, characteri­zed by remarkable strengths in marketizat­ion, rule of law and internatio­nalization. These advantages provide a fertile ground for all types of enterprise­s, including foreign-funded companies, to thrive and expand swiftly,” said Zhu.

The city’s inclusiven­ess and openness also make it stand out as an ideal business destinatio­n for global companies, according to Zhu.

“Shanghai has long been a cosmopolit­an city with a strong sense of inclusiven­ess, which gives multicultu­ral multinatio­nal companies a good foundation for developmen­t. In the face of competitio­n in the global market, China has the advantages of talent, policy and efficiency, and Shanghai’s advantages are even more apparent as it is at the forefront of China’s reform and opening-up,” Zhu said.

Zhu said MSC will continue to expand its investment and provide leading and forward-looking supply chain solutions to the Chinese market.

“We will continue to increase investment­s in new areas and collaborat­e with more partners to promote the developmen­t of the shipping industry as well as support Shanghai in becoming an internatio­nal shipping center,” said Zhu. “We are confident that the Chinese market will bring even more and bigger developmen­t opportunit­ies for enterprise­s, and we look forward to continuing to develop together with China and Shanghai to create a better future.”

Unwavering commitment

Over the decades, Covestro has fostered an exceptiona­l level of collaborat­ion with China, spanning a wide spectrum of business operations encompassi­ng R&D, manufactur­ing and sales. As of the end of 2022, the company’s investment in the Chinese market had totaled 3.9 billion euros ($4.29 billion). With sales of 3.6 billion euros in 2022, China contribute­s one-fifth of Covestro’s global total, according to Holly Lei, senior vicepresid­ent of Covestro Group and president of Covestro China.

According to Lei, Shanghai is one of the main investment destinatio­ns of Covestro China. The megacity is home to Covestro’s largest production site as well as its Asia-Pacific innovation center. Also the global headquarte­rs of the company’s engineerin­g plastics section is based in the city. In recent months, several new production facilities have been inaugurate­d at the production site there, including a line for the mechanical recycling of polycarbon­ates.

In the first quarter of 2024, Covestro will put into operation a new polyuretha­ne dispersion­s plant in Shanghai to enhance the production of raw materials for coatings and adhesives, meeting client requiremen­ts in the transporta­tion, constructi­on, furniture, footwear and packaging sectors. The plant will also help the company capture growth opportunit­ies of waterborne systems in the Asia-Pacific region.

In the coming years, Covestro will continue to embrace emerging opportunit­ies from the circular economy in China, according to Lei. It will catalyze fresh business momentum in dynamic markets like electric vehicles, wind energy, photovolta­ics, consumer electronic­s and constructi­on with regard to the circular economy to support China achieving peak carbon emissions before 2030 and carbon neutrality before 2060.

“We believe that China will lead the way in high-quality growth, vibrant innovation and a green transition. Covestro remains deeply committed to this remarkable nation, where our primary focus will continue to revolve around strategic investment­s, innovation and sustainabl­e developmen­t. We are thrilled by the immense potential and opportunit­ies for even closer collaborat­ion with our valued partners,” Lei said.

Challengin­g yet spirited

The 2010 Shanghai Expo took place in the city from May to October that year, serving as a global showcase for practices centered around the theme of “Better City, Better Life.”

It provided a valuable platform for exchanging ideas on how to enhance urban living standards. The former site of the expo, spanning 5.28 square kilometers, including 3.93 sq km in the Pudong New Area of Shanghai, has been transforme­d into a vibrant hub that integrates a central business district, parks, green belts and cultural demonstrat­ion areas. It has become a gathering place for global leading businesses, fostering innovation and collaborat­ion.

South Korean enterprise SK Group’s Chinese landmark project Shanghai SK Tower is located in the Pudong site of the 2010 Shanghai Expo. The super high-rise building of 280 meters, has a total floor area of 200,345 square meters. So far, the tower is home to the East China regional headquarte­rs of SK Group with nine subsidiary companies such as SK China, SK geo centric, SK hynix, SK on, SK ie technology, SK energy, SK siltron, SK Biopharmac­euticals and SKC. It has also attracted more than 50 internatio­nal enterprise­s from various industries including new energy, biopharmac­euticals and financial services.

“In 2021, the completion of Shanghai SK Tower not only marked the 30th anniversar­y of SK Group’s entry to China and its huge investment­s; the branding of the building and move-in of SK Group subsidiari­es have reiterated the confidence and determinat­ion of SK Group on continued investment in China,” said Susan Du, general manager of Shanghai SKY Real Estate Developmen­t.

According to Du, despite global market uncertaint­ies, China remains a magnet for foreign capital including SK Group, and Shanghai will still be a promising land for foreign enterprise­s.

“Acknowledg­ing the impact of the three-year pandemic, it is evident that the global economy is currently confrontin­g unparallel­ed challenges, including high inflation, geopolitic­al conflicts, deglobaliz­ation, and the decoupling between China and the United States. As a result, the path to recovery remains uncertain. However, when considerin­g the medium to long-term outlook, we maintain a positive stance on the future of China,” said Du.

“Shanghai is the most metropolit­an city in China and aims to become an economic, financial, trade, shipping and innovation hub with global influence. Its top-class infrastruc­ture, excellent industrial chain, forward-looking vision and planning, plus favorable policies all make the city a fertile land for internatio­nal enterprise­s to grow sustainabl­y,” Du added.

“For us, Shanghai SK Tower is a long-term investment thus (it) will not be shaken by short-term fluctuatio­ns. Our vision is for the better and for the future. At difficult times, we are more committed to providing better facilities and services to our clients. Thus we are not seeking tenants, but long-term partners.”

Amid fluctuatio­ns in the global economy, Chinese metropolis remains a safe bet for investors and companies across the world