Shanghai a magnet drawing in MNCs

Shanghai has emerged as a global magnet for multi-national corporations (MNCs) thanks to its increasingly favorable business climate, statistics show. 

As of March, more than 92,000 foreign investment projects landed in Shanghai with actual use of foreign funds topping $220 billion, and over 634 MNCs established their regional headquarters in the city.

In late April, an additional 36 MNCs, including UBM, the world's largest exhibition services provider, NTT, the world's largest communications carrier, and Magna, the world's third largest auto-part supplier, added their names to the list.

According to the execs, Shanghai’s favorable business climate played a pivotal role in their choice of the city over others. 

"Shanghai is our first choice in setting up a regional headquarters, as it enjoys an advantageous geographical location and abundant quality resources as China's top economic hub," said Niels Plate, president of Dentsply Sirona China.

"It is strong in attracting talents and has a quality business environment, which is beneficial to our company development in terms of investment, decision-making and management," said Mark Dong, president of Magna China.

According to Ying Yong, the city's mayor, the city is set to ramp up more efforts in improving business climate, noting "openness is the greatest advantage for Shanghai, and it will further promote reform and opening-up."

He added that local government is willing to solicit opinions and suggestions from the enterprises from home and abroad, and will devote more effort to nurturing a better business climate conductive to their growth.

Foreign businesses, in general, maintain a sound growth momentum in Shanghai. A survey showed that in 2017 the revenue of the 14,600 foreign companies in Shanghai surged 11.2 percent over that of a year earlier, with profits up 21.7 percent.

Shanghai will continue to attract more foreign funds in advanced manufacturing and modern service industries and bring in more global organizations, and the R&D centers of foreign enterprises, according to local authorities.

The certificate-issuing ceremony for the 32 MNCs which set their regional headquarters in Shanghai is held on April 28. [Photo provided to chinadaily.com.cn]

Ying Yong, mayor of Shanghai (right, first), exchanges ideas with MNC execs during the ceremony. [Photo provided to chinadaily.com.cn]