During the 14th Five-Year Plan period, Shanghai has emerged as a key destination for foreign enterprises, with cumulative utilized foreign investment reaching $100.33 billion as of September. The city hosts 631 foreign-invested research and development centers, over half focused on sectors such as information technology, auto parts, and biopharma, along with 1,060 foreign-invested headquarters. As China prepares for the 15th Five-Year Plan, companies indicate that Shanghai will continue to serve as a pivotal engine for their operations in the Chinese market, leveraging its economic resources and industrial ecosystem.
Foreign Investment and Corporate Expansion
Suzano, a major global producer of market pulp, entered the Chinese market in the 1980s and has since established a regional headquarters and Asia Innovability Hub in Shanghai. The company manages sales, investments, R&D, and other functions from the city, utilizing it as a core hub for its pan-Asian network spanning Singapore, South Korea, Vietnam, and India. Shanghai’s role as a science and technology innovation center, combined with its skilled workforce and policy support, provides a business-friendly environment that aids foreign companies in navigating the competitive Chinese market. China is now Suzano’s largest export destination for pulp, and the firm plans to align with China’s green development and consumption upgrade initiatives, further localizing its industry chain.
At the eighth China International Import Expo in Shanghai, Suzano launched the brand Jinyu for its Biopulp products, reflecting a deeper localization strategy aimed at meeting evolving consumer needs. The company’s focus on innovation and sustainability aligns with Shanghai’s efforts to promote green development and new quality productive forces, which are expected to shape the city’s policies in the coming years.
High-Tech Manufacturing and Industrial Growth
Plansee Shanghai, specializing in refractory metals, alloys, and composites, established its presence in the city in 2000 and has expanded significantly, with a production site in the Lingang Industrial Zone. The facility, which underwent expansions in 2013, 2019, and 2025, focuses on research and production for high-tech industries such as semiconductors, aerospace, and medical technology. The company cited Shanghai’s talent pool, international perspective, and efficient government services as key factors in its location choice, with Lingang’s strategic position in the Yangtze River Delta offering advantages for transportation and industry chain integration.
Over the next five years, Plansee Shanghai plans to leverage its global network to deliver tailored material solutions and expand applications in sectors like medical devices, consumer electronics, and new energy vehicles. The company will increase collaboration with local universities and research institutions, boost R&D spending by an average of 20% annually, and invest in green manufacturing to support its market position and carbon peak goals. By 2030, it aims to double annual production of high-end materials, reinforcing Shanghai’s role as a hub for innovation and high-end manufacturing.
Pharmaceutical Sector and Policy Alignment
Pierre Fabre, a European pharmaceutical company, views the goals of the 15th Five-Year Plan as a historic opportunity for growth in China. The firm, which established a multinational regional headquarters in Shanghai in 2024 with government support, plans to synchronize its development with the city’s industrial planning. This includes accelerating collaboration and R&D processes for new drugs, particularly in oncology and skin health, to benefit patients and align with Shanghai’s open measures in drug access and regulatory innovation.
The company intends to deepen cooperation with local partners such as academia, clinical research centers, and biotech companies, aiming to bring more high-quality products to the Chinese market. Shanghai’s policies and support for innovation are expected to facilitate these efforts, as the city continues to attract foreign investment and foster an environment conducive to business expansion and technological advancement.
