By the end of September, Shanghai's cumulative utilized foreign investment during the 14th Five-Year Plan (2021-25) period had reached $100.33 billion.

The figure reflects a clear "vote of confidence" from global companies, seen in new headquarters projects, advanced manufacturing, expanding R&D capacity, and strong activity in consumer-facing sectors.

Headquarters economy: powerful stabilizer

Shanghai remains the most concentrated hub for multinational regional headquarters in the Chinese mainland. This year, the city recognized 44 new regional headquarters, bringing the total to 1,060. Among them, 21 percent now serve as China or Asia-Pacific headquarters.

Policy support continues to strengthen this trend

In February, Shanghai introduced a new set of measures encouraging headquarters to expand functions across R&D, finance, investment decision-making, procurement, supply chain management, and shared services. The policy also sets up a tiered system, covering China, Asia-Pacific, and global divisional headquarters, with support tailored to their development stage and strategic roles.

Global companies are responding with major investments

• In May, Roche Pharma announced a 2.04-billion-yuan (about $287.54 million) biopharmaceutical base in Shanghai, scheduled for completion in 2029 and operation in 2031.
• In September, Daiichi Sankyo began construction of a 1.1-billion-yuan antibody-drug conjugate manufacturing facility in the Zhangjiang High-tech Industrial Development Zone. As part of China's first pilot program for cross-border segmented biopharmaceutical production, the new site will help accelerate the adoption of innovative therapies.

High-tech industries: new magnet for foreign capital

The share of foreign investment flowing into high-tech industries has risen from 23 percent during the 13th Five-Year Plan (2016-20) period to 33 percent under the current one. In high-tech manufacturing, which includes integrated circuits, biopharmaceuticals, and artificial intelligence, foreign investment now accounts for 52 percent of all manufacturing-related FDI.

Momentum continued in November

• Techniques Surfaces Holdings, a subsidiary of HEF Groupe and a leader in surface treatment technologies, announced that its only Asian technology center will be located in Chedun town, Songjiang district. The center will focus on environmentally friendly surface engineering technologies.
• Zeiss, the German optics giant, began construction on its Greater China headquarters campus in the China (Shanghai) Pilot Free Trade Zone. It is the company's largest single infrastructure investment in China to date.

R&D capability remains the backbone of innovation

This year, Shanghai recognized 40 new foreign-funded R&D centers, bringing the total to 631, including 19 global R&D centers. These centers help integrate global innovation resources with Shanghai's industrial ecosystem and accelerate the commercialization of new technologies.

Dynamic consumer market: stage for global brands

If headquarters and high-tech industries are the backbone of Shanghai's economy, the consumer market is its vibrant frontier. Retail, cultural tourism, and hospitality continue to draw strong interest from global brands.

From January to October, Shanghai welcomed 848 new first stores. They include 13 global or Asian firsts and 134 first stores in China or the Chinese mainland.

Major openings in the first half of 2025 included

• Hoka's first global experience center 
• Coach's first global resort-style store at Shanghai Disneytown
• The new adidas Originals global flagship on Anfu Road

Activity remained strong in the second half

• Salomon opened its first global concept store next to adidas Originals on Anfu Road.
• Hush Puppies launched its first themed flagship store in China at Hopson One.
• London children's brand Wynken launched its first China store in Crystal Plaza.
• H&M reopened its Chinese mainland first store on Middle Huaihai Road with a refreshed look, together with its Greater China headquarters.

Cultural tourism continues to deliver new highlights

• The world's largest Legoland opened in Jinshan district, featuring a Monkey King themed zone exclusive to Shanghai.
• A Harry Potter studio tour with an investment of 2.8 billion yuan is under construction and is expected to open in 2027.

Shanghai's hospitality sector is also reaching new heights

With the opening of the Waldorf Astoria Shanghai Qiantan, the city has become the third in the world, after Doha and Dubai, to host two Waldorf Astoria hotels. The first Waldorf Astoria in Shanghai is located on the Bund.

Source: Jiefang Daily