Global Financial Hub: Shanghai Hosts 1,060 Regional Headquarters for Multinational Corporations and 631 R&D Centers

The latest data released by the Shanghai Municipal Commission of Commerce confirms the city's growing status as China's financial center and a preferred destination for foreign investment. As of September this year

Shanghai is home to:

• 1,060 regional headquarters for multinational corporations (MNCs).

• 631 foreign-funded Research and Development (R&D) centers.

Functional Capabilities and International Influence

Zhu Min, the director of the commission, highlighted the continuous strengthening of the functional capabilities of these regional headquarters. These capabilities now extend beyond mere administration to include: investment decision-making, R&D innovation, financial management, procurement, distribution, and supply chain management.

Zhu added that these companies form an advanced network for global resource distribution, significantly boosting Shanghai's urban capabilities and increasing its international influence.

The Role of Foreign Investment in the Local Economy

Foreign investment plays a vital and central role in Shanghai's economy:

• GDP Contribution: Foreign companies contribute nearly a quarter of the city's municipal GDP.

• Tax Revenue: They account for about one-third of Shanghai's tax revenue.

• Innovation Focus: More than half of the foreign-funded R&D centers are concentrated in key industrial chains such as biomedicine, information technology, and automotive components, driving scientific and industrial development.

During the first nine months of this year, Shanghai saw the establishment of 4,764 new foreign-funded enterprises, a year-on-year increase of 5.5%. The cumulative foreign investment attracted by the municipality to date exceeds $370 billion USD.

Zhu confirmed that Shanghai will continue to push for high-level opening-up and will work to enhance a market-oriented, law-based, and internationally compatible business environment to attract more global investment.