Shanghai strengthens role as magnet for global investment

City maintains its status as hugely popular business destination

BEIJING, Nov. 6, 2025 /PRNewswire/ -- A news report from chinadaily.com.cn:

As China's economic hub and a magnet for international business, Shanghai continues to strengthen its appeal to global investors.

According to official figures from the 37th International Business Leaders Advisory Council for the Mayor of Shanghai, the city is home to nearly 80,000 foreign companies, 627 foreign research and development centers and 1,055 regional headquarters of foreign companies as of Oct 12. Meanwhile, more than 4,000 foreign companies were established in the city in the first nine months of the year.

"Shanghai has consistently been one of the most favored investment destinations for foreign businesses. Since the start of the 14th Five-Year Plan (2021-25), the city has attracted more than $98 billion in actual foreign investment. On average, more than 5,700 new foreign enterprises are established annually," said Luo Zhisong, chief economist at the Shanghai Municipal Commission of Commerce.

According to global companies operating in Shanghai, there are numerous reasons for choosing the city. These include Shanghai's commitment to embracing future trends such as digitalization, green and low-carbon development, new energy and artificial intelligence; its well-developed manufacturing infrastructure; a rapid influx of global talent from cutting-edge fields; a strategic location; and a continuous improvement of government services and urban environment. The consensus is that investing in Shanghai — known for its openness, inclusiveness, stability and innovation — is investing in future growth opportunities.

Global vision meets local speed

UFI Group, a global leader in filtration and thermal management, began its journey in China in 1983 and opened its first wholly owned factory, Shanghai Sofima Automotive Filters, in Qingpu district in 1996.

For more than 40 years, the company has been dedicated to expanding its operations in the city and across China to seize emerging opportunities in fields such as new energy vehicles and green development. It has established seven manufacturing sites across China, with the most recent one opening in Jiaxing, Zhejiang province, in 2024.

Shanghai, where UFI launched its operations in China, now hosts the company's regional headquarters as well as its production and R&D facilities. The Qingpu factory continues to be the cornerstone of UFI's innovation and growth, according to Simone Trazzi, CEO of UFI Group Asia Pacific and India.

"As China's most important economic hub, Shanghai offers significant advantages for business, including excellent infrastructure and abundant resources. The city has also shown strong economic resilience, continuously adapting and upgrading its industrial structure in response to complex market dynamics. Its innovative ecosystem and talent pool provide a steady source of growth for enterprises," Trazzi said.

According to Trazzi, one of the company's greatest achievements in China over the past 40 years has been learning to succeed "glocally", a term created by blending "globally" and "locally". The concept sets a solid foundation for UFI to move beyond components to integrated filtration and thermal management solutions for mobility, industry and the emerging hydrogen economy.

"This concept involves combining the scale and speed of China with UFI's global engineering culture to deliver system solutions that provide real-world benefits for people and industries," Trazzi said. "We have deepened long-term partnerships with major original equipment manufacturers and tier suppliers, built a resilient local supply chain and — most importantly — grown with exceptional Chinese talent who share our culture of challenge and passion for excellence."

Shanghai, one of the most dynamic business hubs in China, has played a pivotal role in supporting UFI's "glocal" practices, according to Trazzi.

Trazzi, a recipient of the Shanghai Magnolia Silver Award in 2024, has lived and worked in the city for more than 17 years. He highlighted Shanghai's unique advantages, noting that the city not only offers essential resources such as infrastructure, talent, premium logistics services and innovation support, but also boasts deep local expertise in materials science, precision manufacturing and electronics. This combination allows UFI to prototype, industrialize and scale more rapidly.

"That is why we chose Shanghai for our regional headquarters and why it remains a launchpad for our growth across Asia. This is 'glocal' in action — a global vision delivered with local speed and proximity," Trazzi said.

UFI, which aims to be a system solution provider that always "moves ahead of its clients" and views every market shift as an opportunity, will continue to expand in China with a focus on capacity and capability enhancement, upgrading and digitalization, and strengthening cooperation among its factories and R&D teams to speed up delivery of bespoke solutions to clients in China and across Asia.

"We see every challenge as an opportunity to innovate. Our ongoing investments in China and Shanghai are a clear demonstration of our belief in the region's potential and our commitment to delivering innovation for our partners, customers and communities," Trazzi said.

A century-long connection

Global kitchen and bath leader Kohler has been operating in China since 1995.However, the connection between Kohler and Shanghai dates back nearly a century, with Kohler-branded products installed in many landmark buildings in the city, such as the Peace Hotel on the Bund, now known as the Fairmont Peace Hotel.

Kohler established its presence in Shanghai in 1998 by launching a production site for products such as bathtubs in the Pudong New Area. Since then, Shanghai has played a strategic role in Kohler's development in China.

In 2002, Kohler established its Asia-Pacific headquarters in Shanghai.

In 2015, Kohler opened a 17,000-square-meter R&D center for the Asia-Pacific region in the city to better serve the evolving preferences of local consumers, further advancing its localization strategy in China.

By 2025, its factory in Baoshan district of Shanghai was recognized as a "national outstanding smart factory," continuing to lead industry development.

"Shanghai, at the forefront of China's reform and opening-up, provides strong support to Kohler China with its premium business environment, comprehensive industry chains and abundant talent resources," said Cheng Ning, president of Kohler Kitchen & Bath China. "Efficient government services, transparent and stable policies, along with the well-established supply chain network in the Yangtze River Delta region, have significantly enhanced our operational efficiency and market responsiveness."

As Kohler marks its 30th anniversary in China, the company will continue to "move and innovate boldly" in China and Shanghai, leveraging its expertise to support high-quality development in the country. It will continue to embrace the emerging trends of new consumption and new interactions in China, helping more consumers live healthier and more sustainable lives.

"Over the past 30 years, Kohler has earned strong recognition among Chinese consumers and has witnessed the development of China's bath, kitchen and toilet industry from its early stages to maturity, while establishing a comprehensive industry chain," Cheng said. "Amid the ongoing evolution of the home industry and the rapidly changing market environment, Kohler will continue to pioneer innovative designs, delivering high-quality and smart solutions to consumers."

Shanghai, where Kohler has made significant investments, will continue to be crucial for the company due to its stable, sustainable and predictable business environment. These attributes are also key features that Cheng aims to highlight to other global investors.

"Shanghai boasts a world-class business environment and is home to many high-end industries, creating unparalleled synergy. Its comprehensive industrial ecosystem and openness attract capital, technology and talent, serving as a global platform for strategic expansion, innovation exchange and collaboration," Cheng said.

The right decision

Nippon Paint, which established its presence in Shanghai in 1992, began construction of its regional headquarters and Asia-Pacific R&D center in the Pudong New Area in the second half of 2024.

According to Eric Chung, CEO of Nippon Paint China, over the past 30 years Shanghai has not only served as a gateway to the Chinese market but also as a powerful engine driving business innovation and upgrades. The city's excellent government services, strong commitment to intellectual property protection, access to a skilled workforce, innovative atmosphere, proximity to the domestic market and global connections are all compelling reasons for Nippon Paint to continue investing in Shanghai.

"Transparent policies, a well-developed legal system and a stable business environment are crucial for investors like Nippon Paint. These advantages help us reduce the risks associated with uncertainty and strengthen our confidence," Chung said.

Shanghai's high standards and strict requirements in environmental protection, energy conservation and low-carbon development are also a plus, according to Chung.

"Shanghai's advancement aligns with Nippon Paint China's sustainable development strategy," Chung said.

Looking ahead, Nippon Paint China will continue to deepen its roots in China and Shanghai, according to Chung.

"Initiating operations in Shanghai and continuing to invest in the city has been one of the most successful decisions Nippon Paint has made," Chung said.

SOURCE chinadaily.com.cn