by FANG Zhuoran

Shanghai has approved 30 regional headquarters of multinational companies and 15 foreign-funded R&D centers, as foreign firms continue to expand higher-value operations in China despite global uncertainties.

The newly certified entities are concentrated in sectors targeted by policymakers, including biopharmaceuticals, semiconductors, high-end equipment, automobiles and consumer goods, according to the Shanghai Municipal Commission of Commerce. The batch includes 8 Fortune Global 500 companies.

The move reflects a broader shift among multinationals toward localizing higher-value functions in China, including decision-making, capital allocation and research. Among the newly approved entities are 4 Asia-Pacific headquarters, 4 Greater China headquarters and 1 global R&D center, highlighting the upgrading of multinationals' China operations.

US drugmaker AbbVie recently upgraded its Shanghai base to a regional headquarters, bringing functions such as strategy, investment decisions and R&D coordination closer to the China market.

Lily Dong, vice-president of AbbVie and China pharmaceuticals general manager, told Jiemian News that the upgrade would allow more key decisions to be made locally, enabling faster responses and closer alignment with China's healthcare needs.

AbbVie has partnered with 13 hospitals and more than 50 clinical research sites in China, focusing on major disease areas.

UK consumer health group Reckitt is also expanding its footprint, building a global R&D center in Shanghai with an investment of 300 million yuan (about US$43 million). The facility is expected to house over 150 researchers initially and will serve as its largest R&D investment in Asia.

Around 95% of Reckitt's products are designed for China, and 80% are manufactured locally, underscoring the importance of the market in its global strategy.

South Korea's Hyundai Motor Group is setting up an advanced technology research institute in Shanghai, targeting intelligent cockpits, autonomous driving and next-generation electronic architectures, with headcount expected to reach 500 by 2027.

The company is also building a user experience center in the city as competition in China's auto market intensifies.

Shanghai remains a major destination for foreign investment. In 2025, foreign-invested enterprises in the city rose 6.8% to more than 6,300, while actual foreign investment exceeded $16 billion. The city approved 60 regional headquarters and 45 R&D centers during the year.

As of February 2026, Shanghai hosted 1,084 regional headquarters of multinationals and 647 foreign-funded R&D centers.