Shanghai Pulling Out All Stops For Investment Promotion Meeting

Editor's note:

As global investors recalibrate amid uncertainty, Shanghai remains a magnet.

The figures tell part of the story. As of the end of June this year, the number of foreign-invested entities paying taxes in Shanghai rose 18.7 percent compared with 2020. In the first seven months of 2025 alone, 3,624 new foreign firms registered, a 3.1 percent year-on-year increase, bringing in close to US$10 billion in fresh capital.

Behind these numbers lies a larger question: how will Shanghai sustain its appeal while much of the world economy slows? In the months ahead, this column will explore how policy changes, corporate strategies, and on-the-ground dynamics continue to shape investment in the city.

This episode looks at how global retailers are shaping the city's retail scene with fresh offerings.

Shanghai is stepping up efforts to court global investors at the Shanghai City Investment Promotion Conference, part of the city's CIIE-linked events. The showcase highlights Shanghai's global vision and growing appeal as a hub for innovation and investment.

The city's GDP expanded 5.5 percent in the first three quarters, outpacing the national average. It's driven by new economic engines and high-quality growth. Leading multinationals are pledging fresh investments in manufacturing and R&D, further deepening their role in Shanghai's industrial ecosystem.

UFI Group

UFI Group established its first wholly owned company in China, Sofima Automotive Filter (Shanghai) Co Ltd, in Shanghai in 1996, and it remains a cornerstone of the group's presence in the region.

"Since 1983 when we began our journey in China, our greatest gains have been learning to win "globally" – combining the scale and speed of China with our engineering culture to deliver system solutions that create real-world benefits for people and industries," said Simone Trazzi, chief executive officer of UFI Filters Group Asia Pacific & India.

"In Shanghai, we are actively expanding our R&D capabilities. Our focus is on battery thermal management and next-generation filtration media, supporting the rapid evolution of NEVs and the broader energy transition. At the same time, we are diversifying into Heavy Duty and Industrial, always with a bespoke, solutions-driven approach."

The Italian company now has three major R&D centers in Italy, China, and India, and the Shanghai R&D site is currently the largest around the globe for Thermal Management.

"This network lets us scout needs early, prototype quickly with our Shanghai teams, and industrialize at speed across Asia-Pacific, so advanced concepts reach the Chinese market ahead of demand. Shanghai is where our global vision meets local speed," Trazzi explained.

The city's key advantages include several factors such as early market entry & local expertise, strong industrial ecosystem synergy, global-regional integration, mature and aligned supply chain, he noted.

"We want our regional headquarters to have proximity to customers, a depth of talent, and an ecosystem that rapidly turns ideas into solutions, and Shanghai and the wider Yangtze River Delta (region) offer exactly that," Trazzi said.

"We have deepened long-term partnerships with OEMs (original equipment manufacturers) and tier suppliers, built up a resilient local supply chain, and most importantly, grown with exceptional Chinese talent who share our culture of challenge and passion for excellence."

These are the foundations that allow UFI to move beyond components to integrated filtration and thermal management solutions for mobility, industry, and the emerging hydrogen economy.

Kohler

This year marks the 30th anniversary of Kohler China, and the leading kitchen and bath facilities provider has maintained its status at the forefront of the industry with bold innovation and pioneering design.

Facing the home industry's constant evolution and the ever-changing market landscape, Kohler has consistently advanced localized manufacturing and R&D, driving not only supply chain upgrades and standardization but also propelling the industry's overall advancement in design, craftsmanship, and sustainability.

Addressing the common issue of water pressure in Chinese households, it introduced WaterMind Bionic Water Control Technology in 2023, pioneering adaptive adjustment of water flow intensity.

"Kohler has been deeply rooted in the Chinese market over the past three decades and our greatest sense of accomplishment lies not only in earning consumers' trust but also in witnessing and participating in the entire journey of China's kitchen and bathroom industry, with a comprehensive localized ecosystem coming to shape," said Oliver Cheng, Kohler Kitchen & Bath China president.

"Our R&D centers in China have managed to combine global leading design concepts with the practical needs of Chinese consumers, and we have introduced multiple products that blend aesthetics and functionality harmoniously."

The American company has enhanced its investment in China, particularly in Shanghai, including expanding production facilities, upgrading smart manufacturing lines, and enhancing the capabilities of its Asia-Pacific R&D Center.

Its R&D center in Shanghai has become a vital platform for staying close to markets and accelerating product development. It has deepened Kohler's understanding of diverse consumer needs, driven the implementation of personalized and customized services, and further enhanced its market competitiveness.

Shanghai's business environment which has kept improving and its forward-looking policy support offer foreign-invested enterprises with a stable, predictable, and sustainable foundation for development, he noted.

"Shanghai boasts the most premier international business environment and a high-density cluster of high-end industries, whose combination creates a unique synergy," Cheng added.

Nippon Paint

Since locating its headquarters in the Pudong New Area in 2010, Nippon Paint China has grown and prospered, setting up 16 subsidiaries and affiliate companies in the city.

"Over nearly three decades of dedicated development, we have come to deeply appreciate that Shanghai is not only a strategic point of leverage for Nippon Paint's success in China, but also a powerful engine driving the company's continuous innovation and advancement," said Eric Chung, CEO of Nippon Paint China. "We hold the city's investment environment in the highest regard."

Nippon Paint has brought to the local market a series of innovative technological solutions targeting key areas such as urban renewal, green mobility, and smart manufacturing.

Nippon Paint last year started construction of its Asia-Pacific R&D Center and a new construction material packaging base in Pudong.

The R&D center will be responsible for product development and application research for Nippon Paint in China and the Asia-Pacific region, and will serve as the group's analytical and testing center.

The new project is expected to be operational in 2026, and the latest investment initiative is closely tied to the city's supportive policies for technological innovation, robust intellectual property protection, and abundant resources from research institutions.

Shanghai also maintains high standards and stringent requirements on environmental protection, energy conservation, and low-carbon development, which align perfectly with Nippon Paint China's "Sustainable Development" strategy.

"Choosing Shanghai and continuously increasing our investment here has been one of our most successful strategic decisions in the Chinese market," said Chung.

"Shanghai represents not merely a physical office location, it's our strategic hub for attracting talent, driving innovation, staying close to the market, and connecting with the global market."