Shanghai's Economic Growth and Global Collaboration Spotlighted at 'Grow With China' Event

On October 20, 2025, Shanghai hosted the 'Grow With China' CEO roundtable, which shed light on the city’s pivotal role in driving economic development and fostering international collaboration. With its significant position as a major player in China’s reform and opening-up initiatives, Shanghai is increasingly seen as a beacon for high-quality development and innovation.

The event, organized by the Foreign Affairs Office of the Shanghai Municipal People's Government and China Daily, gathered foreign business leaders and experts, including Marc Horn, president of Merck China. Horn emphasized that Shanghai provides essential resources for businesses aiming to thrive in a globally competitive landscape. He remarked, "You need to be in Shanghai to not fall behind," highlighting the city’s rich resources for innovation and workforce density. Merck has strategically positioned itself in Shanghai, citing the city's capability for research and development as crucial for its advanced display materials.

Economist David Blair shared insights on how Shanghai’s policies support operational efficiency and connections to the real economy. He noted that maintaining low operational costs while focusing on new technologies linked with actual production is a key element for both Shanghai's and China's continued growth.

CEO Toshinobu Umetsu of Shiseido China also emphasized the vital role Shanghai plays in fostering innovation through collaboration with local partners. He explained that the city’s market dynamics provide them with profound insights into consumer behavior, which influences the company’s research and development. Similarly, Jean-Paul Agon, chairman of L'Oréal Group, stated that Shanghai serves as the heart of its operations in China and North Asia, pointing out that the city is central to their strategies for innovation and sustainability.

Statistics from July 2025 show that Shanghai is home to 1,042 multinational regional headquarters and 605 foreign-funded R&D centers, reinforcing its status as an attractive hub for global enterprises and crucial for managing international supply chains. Isabelle Hannedouche, managing director of Sodexo Greater China, underscored that the trustful relationship between local government and enterprises in Shanghai plays a critical role in creating an environment conducive to multinational firms.

Despite global tendencies towards protectionism, Shanghai's welcoming policies are proving to be effective; in the first eight months of 2025 alone, the city approved the establishment of 4,223 new foreign-funded enterprises. This surge highlights Shanghai's proactive stance in engaging with international markets and dispels narratives suggesting a shift towards isolationism in China.

The insights from top executives at the event resonate with the broader trends within China's economic landscape, particularly as Chinese leaders discuss the next five-year plan, which aims to steer national development across vital sectors with known global implications. Rani Jarkas, chairman of Cedrus Group, noted that China's evolving global role in investment, especially within emerging technologies like AI and battery innovations, provides greater options to various nations. Matthias Berninger from Bayer AG echoed this sentiment, stating, "In the past, it was 'in China, for China'. Now, it is 'in China, for the world'."

The International Services Shanghai initiative, a multilingual portal launched by the municipal government, was also highlighted during the discussions. This platform offers a comprehensive array of resources for expatriates regarding business, employment, travel, and education, contributing to the city’s reputation as a desirable location for international talent and investment.

In summary, the 'Grow With China' roundtable illustrates not only Shanghai's economic aspirations but also its commitment to fostering a collaborative, innovative environment that supports both local and foreign enterprises. Shanghai stands as a model for other regions aiming to enhance their global competitiveness while championing inclusive economic growth strategies conducive to international partnerships.