Welcomes new players enter Shanghai headquarters economy
- Posted by: BusinessesChina.com
- Category: Free Trade Zone,
Shanghai Mayor Ying Yong handed official certificates yesterday to representatives of 40 new multinationals which have been approved to establish regional headquarters in Shanghai.
Of the newly-settled companies, 27 are establishing Chinese headquarters and 13 are for the Asia-Pacific. They include Adient, a leader in global automotive seating, Jaguar Land Rover, Britain’s largest automobile manufacturer, and other renowned industry leaders.
The headquarters of multinationals are being rapidly attracted to the city as it vigorously promotes establishment of a Shanghai Pilot Free Trade Zone and technology and innovation center. By end of August, the city had registered 90,300 foreign-funded projects using foreign capital worth US$408.2 billion.
Shanghai is currently home to 610 regional headquarters or corresponding institutions, including 67 Asia-Pacific headquarters. Also, 416 foreign R&D centers have been set up.
The leasing and business services centered around the “headquarters economy” have become the most important areas for Shanghai to utilize foreign capital. In the first seven months of this year, the operating revenue of foreign-funded enterprises grew by 14 percent year-on-year. The total tax paid was up by 19.3 percent, and total profit up by 28.6 percent.
Shanghai is expected in the near future to roll out polices to support the development of more foreign R&D centers as it strives for breakthroughs in promoting cross-border flows of innovation, protecting intellectual property rights, and supporting foreign R&D activities.