Shanghai Releases 2018 White Paper on Environment for Foreign Investment

Published on 2019-01-09

At the end of 2018, the Shanghai Municipal Commission of Commerce released a white paper on the environment for foreign investment.

The paper includes a general overview and takes a detailed look at government policies, civil services, business environment and supporting infrastructure. 

white paper coverAs of the end of 2017, Shanghai had introduced a total of about 91,000 foreign-invested projects, with a paid-in capital of USD 223.1 billion, accounting for 11% the country’s total. In the first half of 2018, Shanghai saw 2,177 new foreign-invested projects and a contractual foreign investment of USD 21.5 billion, among which USD 8.56 billion had been executed. 

Countries and regions listed as the top 10 investors in Shanghai (by paid-in capital) in first half year were Hong Kong, Germany, Singapore, the USA, the British Virgin Islands, the Cayman Islands, Japan, the UK, France and the Netherlands, whose paid-in capital amounted to about USD 7.89 billion, accounting for 92.1% of the city’s total. 

As the main area attracting foreign capital, the service sector absorbed 95% of the city’s total paid-in capital in 2017, among which headquarters economy is the most-invested, while manufacturing is becoming increasingly attractive to overseas investors in recent years, with foreign-invested enterprises playing a leading role in high-tech manufacturing.

By the end of June 2018, Shanghai had attracted a total of 642 RHQs of MNCs. Industries such as automobile, electronics and electrical engineering, wholesale and retail, chemical and biomedicine made particularly remarkable contributions to the total amount of taxes.

The total number of foreign-invested R&D centers increased to 434 by the end of June 2018, accounting for about one fourth of the total in mainland China, the No.1 in China. These centers have concentrated in high-tech industries, such as information technology, pharmaceuticals and biotechnology, automobile and auto parts, and chemicals. 

This annual paper was first launched by the Shanghai Municipal Commission of Commerce in 2006. The 2018 edition was compiled by Deloitte China.
 
Please download the full version of the paper below.