Shanghai a hub for transnational headquarters
Dawn breaks over Lujiazui Financial District in Shanghai on March 7, 2017. [Photo/VCG]
The clustering of regional headquarters and research centers in Shanghai reflects the city, and also the country's, increasing economic appeal for foreign investments.
On Dec 6, the Shanghai municipal government issued certificates to the regional headquarters of 30 transnational companies and 15 foreign-invested research and development (R&D) centers, raising the total numbers to 665 and 440 respectively.
Of the 30 regional headquarters, 12 are from world-top industrial leaders, such as cruise giant MSC, biotech firm Biomerieux, hotel giant InterContinental, global infrastructure firm AECOM, interface manufacturer Japan Display, and toy producer Mattel.
The 15 R&D centers in Shanghai also include foreign investments from world leading automotive equipment supplier Valeo and elevator manufacturer Schindler.
Displaying diversified capabilities in investment, management, R&D, trade, logistics, and clearing, these regional headquarters reflect their mother companies' ambition to acclimatize to the Chinese market and seek steady progress. As an insider from the Shanghai municipal commission of commerce summed up, "Shanghai is a place where transnational companies compete to chase and take."
The city in return is showing great momentum in its foreign investment sector. As of October, Shanghai has invited and welcomed over 95,600 foreign funded projects, realizing an accumulated actual foreign investment of $237.6 billion.
Foreign companies in Shanghai sought sound and sustainable development in the first three quarters of 2018, with total operating revenues obtaining a year-on-year growth of 8.1 percent, total tax increasing by 11.1 percent, and profits rising by 7.2 percent.