Already home to 25 regional headquarters of the world's top 500 companies, Shanghai's new district of Pudong is now a prime location for global corporations.
Shanghai's eastern suburb across the Huangpu River has seen more than 7,000 foreign-funded projects involving US$40 billion since Pudong was developed a decade ago.
Multinational corporations have found setting up a local headquarters makes it more convenient to manage their investment, production and sales in the huge China market. Many have moved their regional headquarters from Hong Kong or Singapore to Pudong following the establishment of their production lines and research and development centers in the district.
Located in a strategic area, Pudong is widely recognized as the key bridge connecting the domestic and international markets. Roche Pharmaceutical, which opened its China headquarters in Pudong in 1995, has successfully increased its market share in the country with seven manufacturers.
The world's leading drug maker has decided to expand its business to areas south, north and west of Pudong.
Meanwhile, the newly developed Pudong has fewer of the traditional economic restraints seen in its western counterpart in downtown Shanghai. More preferential policies in terms of market accession, funds and talent flow, sales services and logistic services for foreign investors are especially appealing.
A senior official with Hongkong and Shanghai Banking Corporation (HSBC) said that their branches in the mainland have benefited from more efficient management, coordination and service since it moved the China headquarters from Hong Kong to Lujiazui, the financial center of Pudong, last year.
Furthermore, Pudong has proved to be a safe hub for international capital as the global economic center shifts to Asia. It has maintained stable and healthy development while the world is undergoing an economic crisis.
Earlier this year when reports of slashed investment were common, more capital came into the district with the number of foreign funded projects increasing 25 percent over the previous year. Intel, for instance, has announced it will spend US$300 million to expand its chip production line there.
Pudong authorities are planning to create additional preferential policies to encourage more regional headquarters of big name companies like Kodak and Siemens.
(China Daily 10/16/2001)
