Shanghai sees record actual use of foreign investment in 2022, highlighting China as ‘hot spot’ for global business
Published: Feb 03, 2023 09:57 PM
A view of Shanghai Photo: VCG

A view of Shanghai Photo: VCG

China's financial hub of Shanghai witnessed a record $23.9 billion in actual use of foreign investment in 2022, which partly shows its appeal for foreign investment while China effectively contained the epidemic.

The metropolis is now home to 891 regional headquarters of multinational corporations and 531 foreign R&D centers, Xinhua News Agency said on Friday, citing data from the municipal commission of commerce.

As more multinational companies have chosen to set up their headquarters in Shanghai over the past 20 years, they are sharing in the achievements of China and Shanghai's economic opening-up, and also strengthening their confidence in Shanghai, said the commission.

The commission said Shanghai would make every effort to foster a market-oriented, law-based and international business environment.

The city will also strive to provide more accurate, convenient and efficient government services for foreign companies in Shanghai and support them to put down their roots in Shanghai and grow bigger and stronger, it added.

Honeywell is a participant and witness of China's reform and opening-up. After the Asia-Pacific headquarters settled in Shanghai, its development in China has entered the "fast lane" in recent years and China has become Honeywell's second-largest single market in the world, William Yu, President of Honeywell China, told the Global Times on Friday. 

He said that Shanghai has a first-class business environment for innovation, and the China R&D team in Shanghai and other regions has become an important part of Honeywell's global R&D network, with products innovated and developed in China going global.

The 6th China International Import Expo (CIIE) will be held from November 5 to 10 offline in Shanghai, and more than 500 enterprises have signed up to take part in the event. Country pavilions will be held offline this year and open to certain visitors, said the CIIE's organizers on Friday.

Shanghai's performance is also in line with the country's data, which saw China's inbound foreign direct investment in 2022 hit $189.13 billion, rising 8 percent in US dollar terms and maintaining stable growth for a third consecutive year.

Data from the Ministry of Commerce (MOFCOM) showed that South Korea, Germany and the UK are the top three investors, whose FDI increased by 64.2 percent, 52.9 percent and 40.7 percent respectively.

China is still a hot spot for foreign investment and business development, MOFCOM said.

Market watchers said that a strong manufacturing base and an improving business environment and the vast market have played important roles behind the growth, and the Chinese market's attraction has not been dampened by COVID.

German automotive supplier Bosch considers recovery in China as key to its success this year, it said on Friday, as the company reported a more than 15 percent jump in full-year operating profits, according to Reuters. Bosch said China accounts for a fifth of the company's revenue.

Bosch said on January 12 that it plans to invest up to $1 billion over the coming years to propel development and production of components for electro-mobility and autonomous driving in China. 

Volkswagen Group CEO Oliver Blume arrived in Beijing on Monday to start his week-long visit to China. He spoke highly of China-Germany relations, saying that the two countries have strong foundations for cooperation. He told the Global Times that the German government is holding discussions on relevant documents in terms of their new strategy toward China.