A Call for Innovation and Global Integration at IBLAC

"Shanghai is good and can be better" with further integration of resources and more innovation, participants of the International Business Leaders' Advisory Council for the Mayor of Shanghai (IBLAC) said at its 37th meeting on Sunday.

"Shanghai has a clear target that the city will be built into a modern international metropolis with global influence by 2035," Shanghai Mayor Gong Zheng said at the annual meeting, addressing top executives of some of the world's biggest companies.

"The next five years will be a crucial period for achieving this goal and Shanghai will embrace the world with 'openness, innovation and inclusiveness,' striving to step up to the next-level development," Gong said.

He cited technological innovation, industry upgrade and attraction for talented professionals as key elements to nurture high-quality growth.

The mayor's council was first formed in 1989 by the then Shanghai Mayor Zhu Rongji, who later became China's premier. Starting with 12 members from eight countries, it has grown into 46 members from 15 countries, with 10 honorary members.

Severin Schwan, chairman of Swiss drug giant Roche Group, chaired this year's meeting, which is themed "Openness, Innovation and Inclusiveness – Shanghai's Development Strategy Toward 2030."

Mark J. Greeven, a professor from the International Institute for Management Development, said Shanghai has significant advantages, driven by talents, rules and markets through innovation.

"How to better integrate resources such as data, people and intellectual property is of great value for Shanghai, and I suggest good protection while encourage better flow of these resources," Greeven said.

He also noted multinational companies need to learn from China's innovative practice, such as how to get closer to clients, how to innovate on cost control and how to make companies more flexible.

Zhang Lei, chief executive of Hillhouse Investment, shared stories of Agibot, Sigenergy and Meritco – three tech startups based in Yangtze River Delta region featuring artificial intelligence.

"Can you believe that Agibot can develop a robot within six months from concepts to reality," Zhang said. "It is only possible in Shanghai because the city has a stable supply chain and it is the place where global scale meets China AI edge."

Shanghai is a fitting venue for such a meeting. The city has become the leading magnet in China for foreign investment and is home to about 60,000 foreign-invested companies and nearly 1,000 regional headquarters of multinationals. In the first five months of this year alone, nearly 2,500 foreign firms were registered in the city, with direct investment of US$7.6 billion.

Good use of data, a comprehensive ecosystem and strong computing power are the mostly mentioned in council members' advices, despite their different background of industries, ranging from manufacturing, finance, health care, auto, electronics, retail, consumer goods, communication and consulting, among others.

Against the background of US trade frictions, localization has been lifted to a much higher level of importance in the eyes of these chiefs of multinational companies.

"Localization is more urgent than ever before because globalization is no longer the way it was," said Jean Lemierre, chairman of BNP Paribas. "It is the value of great platforms like IBLAC."