Shanghai Attracts Global Investors with Robust Business Environment

Shanghai has reaffirmed its status as a premier destination for global investment, showcasing its strength as an economic hub. As of October 12, 2025, the city hosts nearly 80,000 foreign companies, 627 foreign research and development centers, and 1,055 regional headquarters of international firms. In the first nine months of 2025 alone, over 4,000 foreign companies were established in Shanghai, underscoring its ongoing appeal to foreign investors.

According to official data from the 37th International Business Leaders Advisory Council for the Mayor of Shanghai, the city has attracted more than $98 billion in actual foreign investment since the inception of the 14th Five-Year Plan (2021-25). On average, more than 5,700 new foreign enterprises set up operations in Shanghai each year. Luo Zhisong, chief economist at the Shanghai Municipal Commission of Commerce, noted that Shanghai remains a favored investment choice due to its commitment to emerging trends like digitalization, green development, and artificial intelligence, alongside its robust manufacturing infrastructure.

Global Companies Embrace Shanghai’s Advantages

Organizations such as UFI Group, a leader in filtration and thermal management, have capitalized on Shanghai’s advantages since establishing operations there in 1983. The company launched its first wholly owned factory, Shanghai Sofima Automotive Filters, in 1996. Over the years, UFI has expanded its footprint in China, with seven manufacturing sites, the latest opened in Jiaxing, Zhejiang province, in 2024.

Simone Trazzi, CEO of UFI Group Asia Pacific and India, emphasized the city’s economic resilience and innovative ecosystem. “Shanghai offers significant advantages for business, including excellent infrastructure and abundant resources,” Trazzi stated. The company has embraced a “glocal” approach, blending global insights with local speed to deliver tailored filtration solutions for diverse markets. Trazzi highlighted that Shanghai’s unique advantages, such as local expertise in materials science and electronics, enable quicker prototyping and industrialization, making it an ideal location for UFI’s regional headquarters.

Longstanding Connections and Continued Growth

Kohler, a global leader in kitchen and bath products, has a history in Shanghai dating back nearly a century. The company established a production site in the Pudong New Area in 1998 and has since built a significant presence in China, including opening a 17,000-square-meter R&D center in 2015. With its factory in Baoshan district recognized as a “national outstanding smart factory,” Kohler continues to innovate in response to evolving consumer preferences.

Cheng Ning, president of Kohler Kitchen & Bath China, praised Shanghai’s business environment, which includes efficient government services and a strong supply chain network. As Kohler celebrates its 30th anniversary in China, the company aims to leverage emerging trends to support sustainable living and high-quality development.

Nippon Paint, another prominent player, has operated in Shanghai since 1992. The company’s recent investment in a regional headquarters and Asia-Pacific R&D center in the Pudong New Area reflects its commitment to the city. Eric Chung, CEO of Nippon Paint China, highlighted Shanghai’s role as a gateway to the Chinese market and its strong support for innovation and intellectual property protection.

Chung noted, “Transparent policies and a stable business environment are crucial for investors like Nippon Paint.” The company’s future plans include deepening its roots in Shanghai while continuing to innovate in the sustainable development sector.

As Shanghai continues to enhance its attractiveness to foreign investors, the city stands out for its openness, inclusiveness, and commitment to innovation. The combination of a stable business environment and a proactive approach to emerging global trends positions Shanghai as a vital hub for international business growth.