This represents yet another step in Shanghai’s economic development. This new form of investment further enhances the international standing of the city and accelerates the whole development of the Yangtze River delta.

For Shanghai the breakthrough in inward foreign investment started in the 1990s. Already 184 multinational corporations, including international distribution groups and purchasing service firms like Fort, Morgan, Carrefour, IBM, Metro, Darunfa have established themselves in Shanghai. Sixty-two of these are among the world’s Top 500 companies. Forty-six are international-class research and development names, which together are responsible for some 406 industrial projects. Sixty-nine are foreign investment companies. Wal-Mart and the purchasing department of the United Nations are also preparing to establish a presence in Shanghai.

The city has attracted many modern logistics groups, sales centers and international trading firms. For example the city’s Waigaoqiao duty-free zone plays host to 4,800 international trading firms and 518 logistics enterprises. These enterprises have established production and export bases in the valley and delta of the Yangtze River.

Economists in Shanghai believe this type of development has not only helped accelerate the industrial resurgence of Shanghai but is now also helping to bring prosperity to neighboring regions as the economic benefits radiate out. The benefits include new access to information, capital, technology, logistics and professional expertise as economic growth is stimulated all along the Yangtze.

Shanghai has been working at attracting not only the multinationals but also large domestic corporations. The city is pushing hard to promote infrastructure developments that will support economic integration in the city and throughout the surrounding areas.

(china.org.cn by Guo Xiaohong, September 13, 2002)