by FANG Zhuoran

Shanghai's Hongqiao International Open Hub is drawing renewed foreign investment, with 380 new foreign-funded firms added last year, as the government-backed project marks its fifth year, pointing to improving sentiment among multinationals.

Launched in 2021, the project has developed into a hub linking China's domestic market with global business networks, according to a recent government-backed assessment report.

In an interview with Jiemian News, YU Wenkai, director of a Shanghai government-affiliated economic research institute and a lead contributor to the report, said the findings highlight how the hub's appeal lies in combining connectivity with access to capital, talent and services, helping companies lower costs and expand more efficiently. The hub has been adding nearly 90 headquarters entities a year.

That ecosystem has become a key draw, with professional services expanding to support corporate operations.

Foreign investment is showing signs of recovery. The Hongqiao business district added 380 foreign-funded companies last year, up by 144 from 2020 and more than 200 above the 2022 trough, while actual utilized foreign capital reached $660 million.

Hongqiao is also emerging as a coordination point for the Yangtze River Delta, linking Shanghai-based headquarters with manufacturing bases in neighboring regions.

In sectors such as biopharmaceuticals, Shanghai focuses on R&D while surrounding regions handle production.

Yu said the emergence of such cross-regional networks reflects a broader push to break administrative barriers and build a more unified national market.