Shanghai has established itself as a vital hub for global enterprises, attracting significant foreign investment as companies prepare for the upcoming 15th Five-Year Plan (2026-30). As of September 2025, the city has accumulated a remarkable $100.33 billion in utilized foreign investment during the 14th Five-Year Plan (2021-25). This investment reflects the confidence foreign businesses have in Shanghai, particularly in sectors such as research and development, production, and marketing.
The city is home to 631 foreign-invested research and development centers, over half of which focus on industries like information technology, auto parts, and biopharmaceuticals. Additionally, Shanghai hosts 1,060 foreign-invested headquarters. These figures illustrate Shanghai’s role as a strategic location for companies looking to expand in the Chinese market.
Strategic Growth Opportunities in Shanghai
Among the businesses benefiting from Shanghai’s dynamic environment is Suzano, one of the world’s largest market pulp producers. Since entering the Chinese market in the 1980s, Suzano has established its regional headquarters in Shanghai, along with the Asia Innovability Hub. Pablo Machado, global executive vice-president of strategy and Asia business at Suzano, emphasized that the city’s rich economic resources and active industrial ecosystem make it a prime location for innovation and operational excellence.
Machado noted that Shanghai’s highly skilled workforce is crucial for industrial development. The city’s supportive policies offer a business-friendly environment, aiding foreign companies in navigating the competitive landscape of China. He stated, “These collective advantages offer excellent support for Suzano to establish itself in China and drive business development across the Asia-Pacific region.”
As a testament to its commitment, Suzano has localized its supply chain and aims to align with China’s green development initiatives. With a focus on sustainable solutions, the company plans to enhance its operational capabilities and engage in collaborative projects with local partners.
Continued Expansion by Global Firms
Plansee Shanghai, which specializes in refractory metals, has made significant investments since its establishment in 2000. The company opened its first production site in the Lingang area in 2013 and has since expanded its operations. By 2025, Plansee completed its third phase of expansion, solidifying its position in high-tech manufacturing sectors such as semiconductors and aerospace.
Richard Cheung, managing director of Plansee Shanghai, highlighted the city’s exceptional talent pool and robust industrial ecosystem as key reasons for choosing Shanghai. He stated, “We chose Lingang because of its advantageous location at the hub of the Yangtze River Delta. This location offers convenient transportation and a comprehensive industry chain, making it particularly suitable for high-end manufacturing.”
Looking ahead, Plansee Shanghai plans to leverage its global network to deliver tailored solutions across various sectors, including medical devices and consumer electronics. The company aims to increase its annual research and development spending by 20 percent to enhance local innovation and green manufacturing initiatives.
Another significant player, Pierre Fabre, one of Europe’s leading pharmaceutical companies, views the 15th Five-Year Plan as a historic opportunity. According to Zheng Hongshu, senior director of Asia-Pacific market access at Pierre Fabre Pharmaceuticals (China), the company will continue to align its strategies with Shanghai’s development goals. With the support of the Shanghai government, Pierre Fabre established a multinational regional headquarters, facilitating collaboration on medical technology and cosmetic research projects.
Zheng expressed optimism about the company’s future in China, stating, “We will continue to actively seek in-depth cooperation with various local partners to jointly promote innovation in oncology and skin health.”
As Shanghai prepares for the future, its commitment to fostering an environment conducive to foreign investment and innovation is clear. With significant contributions from global enterprises, the city is poised to remain a leader in the evolving landscape of international business.