Friday, 11 March 2016 18:29

We learnt from Shanghai Ministry of Commerce for it “TEN MAJOR PLANs to PROMOTE THE FOREGIN INVESTMENT”. We listed the points as below and may see the Shanghai government’s opinion for the foreign investment.


-      It is encouraged to upgrade the current headquarter (“HQ”) to the Asia Pacific regional HQ or even to the global HQ. It is to attract more multinational companies to set up regional HQ in Shanghai as well as support multinational companies to set up Asia Pacific operation center or operational HQ in Shanghai;

-      It is encouraged to improve the R&D function for the current Foreign R&D center in Shanghai. It is to attract more multinational companies to set up R&D center in Shanghai and encourage the multinational companies having mature conditions to establish innovation center in Shanghai;

-      The plans for introducing the foreign investment should cover the whole city and to have the work linkage between the municipal level, district level, zone level and major group level;

-      "Industrial 4.0” as the capital attracting plan should consider the needs of the local industrial upgrading. It is to promote the cooperation between the local companies and foreign high-end manufacturing and intelligent manufacturing enterprises as well as introduce or merge of the foreign advanced manufacturing technology and intelligent manufacturing technology for the purpose of speeding up Shanghai step into the industrial 4.0 times;

-      Make the promotion plan and actively promote the business environment in Shanghai, to create a positive image of Shanghai as a modern international metropolis;

-      Promote the transformation and upgrading on the national economic and development zone’s innovation; Encourage national zone to link with the overseas zone; Promote industrial cooperation between the economic development zone and the industries along the Yangtze River. It will be firstly have the trail in the FTZ and then copy its experiences to the outside;

-      "The Belt and Road" Partnership Program;

-      International organization introduction plan;

-      Further deepen the reform of the administrative examination and approval system, study and formulate the foreign invested companies administrative policy during the post regulatory system;

-      Investment promotion and talent training program;


Dongjin Comments:

1.     The cost for operating a company in Shanghai is very high. As a result, it is no longer suitable for setting up the low-end and traditional manufacturing companies in Shanghai;

2.     The foreign investor can take the advantage of talent, financial, marine, trading and the regulatory market in Shanghai and involves in the high-end and intelligent R&D industries;

3.     There is still the potential high-end consuming market in Shanghai and the foreign investor can involve in the retailing of middle and high-end consuming products and high-quality experiential service industry, i.e. entertainment, food and beverage, travel, education, health care and beauty and etc;

4.     The foreign investor takes use of the favorable policies in Shanghai when setting up the Asia Pacific regional HQ or the global HQ or the R&D center;


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Ms. Jojo Hu

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