'Grow With China' event showcases Shanghai's rise as an economic powerhouse

SHANGHAI, Oct. 21, 2025 /PRNewswire/ -- A news report from english.shanghai.gov.cn

At the forefront of China's reform and opening-up, Shanghai is spearheading the world's second-largest economy's push for high-quality development, forging a path built on international collaboration and inclusive innovation, economists and executives said.

They made the remarks on Oct 20 in Shanghai during the "Grow with China" CEO roundtable, which was jointly held by the Foreign Affairs Office of the Shanghai Municipal People's Government and China Daily.

"Shanghai is really open for cooperation, going beyond business," Marc Horn, president of Merck China, said. "We always say 'you need to be in Shanghai to not fall behind'."

The company strengthens its global portfolios by utilizing the city's capacity for innovation, and talent and manufacturing density. That is how "in China, for global" happens, Horn said, noting that Shanghai has become a key manufacturing and R&D hub for the company's advanced display materials.

Merck's presence in Shanghai is not an isolated phenomenon, but a deliberate outcome of the city's policy and positioning.

"Shanghai keeps the prices of operation low while linking to the real economy," economist David Blair said. "That's the key for Shanghai's growth and for China's growth — emphasizing new technologies linked with real production."

Toshinobu Umetsu, CEO of Shiseido China and Travel Retail, noted that the company has two R&D centers in Shanghai. "The Chinese market gathers very savvy and forward-looking consumers, providing us with profound market insights," he said.

"Shanghai is an ecosystem builder," Umetsu said. "We are accelerating cooperation with local partners. China gives us inspirations."

Jean-Paul Agon, chairman of L'Oréal Group, said in a written address at the event that Shanghai is the company's heart in China and North Asia, serving as a strategic engine in terms of innovation, operation, talents and sustainability, among others.

Shanghai currently hosts 1,042 multinational regional headquarters and 605 foreign-funded R&D centers, making it one of the most attractive destinations for global businesses and a key hub for managing international supply chains, according to official data in July.

The "trustful environment" in Shanghai — a good-faith confidence between local government and enterprises — emerged as a critical competitive edge of the city for multinational companies to thrive, Isabelle Hannedouche, managing director of Sodexo Greater China, said.

"Shanghai offers a fair and balanced ecosystem to enable companies providing the right service with the right standard in a very compliant way. It showcases the inclusiveness of the city," Hannedouche said. "We have people with very different backgrounds, here, we have a way to be able to attract them, retain them and give them opportunities to grow."

Buoyed by the optimism widely shared by global businesses, Shanghai, according to local authorities, approved the establishment of 4,223 new foreign-funded enterprises from January to August, a 3.9 percent increase compared to the same period last year.

Shanghai's opening-up and innovation-centered policies provide a powerful counter-narrative to claims of a China turning inward. For global executives, watching Shanghai is not just about watching one city — it is about observing the future of China's engagement with the world take shape.

Chinese leaders gathered on Oct 20 for a major Party meeting that will run to Oct 23 in order to discuss the country's next five-year plan, a policy roadmap shaping key areas of national development, with ripple effects far beyond China's borders.

Despite the rising protectionism and unilateralism around the globe, China's next stage of development is expected to continue along the path of advancing high-level opening-up and pursing innovation-led growth.

"The Chinese government is building a unique global ecosystem, with the country taking on a greater role in global investment," Rani Jarkas, chairman of Cedrus Group, said, adding that innovations in such areas as AI and battery technology provide other countries with more alternatives.

Matthias Berninger, executive vice-president Public Affairs, Science, Sustainability & HSE Bayer AG, said in a written address at the event that, "In the past, it was 'in China, for China'. Now, it is 'in China, for the world'."

Panelists also spoke highly of the International Services Shanghai, a multilingual portal launched last year by the Shanghai municipal government, which offers a wide range of resources covering policies, news updates and useful tips designed for expats in Shanghai who are seeking information on business, employment, travel, education and shopping.

SOURCE english.shanghai.gov.cn