Fang Zhuoran

Shanghai has recently welcomed 40 new regional headquarters and R&D centers of multinational companies, as foreign businesses deepen their presence in China’s key industrial sectors.

The latest batch includes 30 regional headquarters and 10 foreign-invested R&D centers, with more than half tied to Shanghai’s priority industries, such as electronics, biomedicine, high-end equipment, fashion consumption, and new energy.

Nine of the newly certified headquarters serve Greater China or wider Asia regions. Notable examples include Italian appliance manufacturer De’Longhi, which upgraded its China HQ to a Greater China HQ, and Dutch music giant Universal Music Group, which set up a Greater China HQ. Four of the companies are backed by Global Fortune 500 investors, including US warehouse chain Costco, French environmental services firm Veolia, US automaker Tesla, and GE’s energy unit.

De’Longhi, founded in 1902 and known for its coffee machines, said the upgrade reflects China’s booming market. “China is now the most competitive market globally for home coffee machines,” said Zong Yanping, managing director of De’Longhi Greater China. He noted that product iterations in China now occur every 18 to 24 months—down from the global average of five years.

Zong also highlighted the growing influence of Chinese consumer trends on global product development. “Now we launch new models in China first, then bring them to Europe,” he said, citing a recent consumer insight report from the China team that will shape future product design.

Meanwhile, US consumer health firm Kenvue has launched a new expansion project at its Shanghai plant, doubling its production capacity of over-the-counter (OTC) tablets from 1 billion to 2 billion annually.

Gift Arpaporn Samabhandhu, president of Kenvue China, said the company has regarded Shanghai as its home for more than 30 years. Its three factories, established in the late 1980s and early 1990s, were among the first foreign-invested plants in the city. She noted that with rising health awareness in the local market, the company aims to make Shanghai a leading OTC production hub for the Asia-Pacific region.

Shanghai remains a magnet for foreign investment. In 2024, the city approved 60 new regional headquarters and 30 R&D centers, bringing the cumulative totals to 1,027 and 597 respectively as of February. Nearly 6,000 new foreign-invested companies were set up in the city in 2024, with actual foreign capital used exceeding US$17.6 billion.

In addition to the new headquarters and R&D centers, Shanghai also awarded certifications to the second batch of “Global Partners for Promoting Foreign Investment.” The 10 recipients include international consultancies Roland Berger and Colliers, financial institutions such as Mizuho Bank and China Construction Bank, and organizations like the Shanghai office of the Japan-China Science, Technology and Culture Centre.

The centre’s representative, Li Jiannong, said they helped four Chinese companies set up factories in Japan last year and are now planning a China-focused industrial park in Japan. With Osaka Expo 2025 on the horizon, the centre aims to help more firms from the Yangtze River Delta expand into Japan. “This year, our priorities include Osaka Expo and building Sino-Japanese innovation hubs,” Li said.