Shanghai remains the top choice for foreign investment
In the process of global value chain reconstruction and China’s industrial structure adjustment, Shanghai’s role as a “bridgehead” for foreign capital entering the Chinese market is becoming increasingly important.
Most of the regional headquarters of multinational companies and foreign-funded R&D centers that have been awarded certificates this time come from the key development industries in Shanghai, including biomedicine, intelligent manufacturing, and fashion consumer goods. The enterprise level also remains at a high level – there are a total of 7 Fortune Global 500 companies, 5 regional headquarters in the Greater China region or above, and 1 business division headquarters. The foreign investment projects signed this time mainly cover key areas such as biomedicine, fashion consumer goods, finance, automobiles, and business services, as well as new tracks like digital economy and green low-carbon.
Jin Wei, vice president of EBm-Papst China, a multinational company in the field of fans and motors, said that China has become the largest overseas sales and most profitable investment region for the group. Therefore, it is natural to set up the regional headquarters in Shanghai. Over the past decade, the company’s business in China has achieved a compound annual growth rate of 8.8%, performing well in traditional manufacturing. The growth in recent years has far exceeded expectations, further confirming the strength and development potential of the Chinese market.
Sonoma, a Swiss provider of innovative hearing care solutions, upgraded its China headquarters in Shanghai to a “China Special Economic Zone” in 2022. Fang Fang, vice president and general manager of Sonova China, told Yicai Global that the China headquarters is no longer part of the Asia-Pacific region but reports directly to the global headquarters. It is the only “special zone” within the company. Now they have further upgraded the “China Special Economic Zone” to a regional headquarters.
Scopely, an American gaming giant, is a rather unique presence and a newcomer in the Chinese market. Since establishing their Shanghai office at the end of 2020, they have also set up their China headquarters here this time. The company has developed one of the world’s highest-revenue casual mobile game products, achieving a life-cycle operating revenue of approximately 10 billion US dollars in 2024, with a compound annual growth rate of up to 10 times from 2018 to 2024.
Zhang Lei, the general manager of Skoli Software Development (Shanghai) Co., LTD., said that the establishment of the China headquarters in Shanghai this time is precisely due to the group’s gradual clarification of its China strategy in recent years and its plan to increase investment in China. They have not yet released their products in China. They plan to introduce their top products to the Chinese market through cooperation with local distribution partners from 2026 to 2027 and gradually build a research and development center in China.
Zeng Han, executive vice president of Deshuo Management Consulting (Shanghai) Co., LTD., a global management consulting firm headquartered in Japan, also told Yicai Global that when Deshuo entered the Chinese market in 2003, it set up its regional headquarters in Shanghai, precisely because of the opportunities presented by China’s accession to the World Trade Organization at that time and Shanghai’s status as a core city in China. To date, the company has been developing in the Chinese market for more than 20 years.
