‘Grow With China’ Event Highlights Shanghai’s Expanding Role in Global Economic Growth

Shanghai continues to drive China’s reform and opening-up agenda, reinforcing its position at the center of the world’s second-largest economy as the city accelerates high-quality development through international collaboration and innovation-driven growth, according to economists and global business leaders.

Grow With China

During the “Grow with China” CEO roundtable held on Oct. 20 and jointly organized by the Foreign Affairs Office of the Shanghai Municipal People’s Government and China Daily, executives emphasized that Shanghai’s success lies in its ability to link advanced technology with real-world industry and maintain a dynamic, competitive business environment.

“Shanghai is really open for cooperation, going beyond business,” said Marc Horn, President of Merck China. “We always say ‘you need to be in Shanghai to not fall behind’.” He noted that Merck has been strengthening its global portfolio by leveraging the city’s strong innovation capabilities and dense concentration of talent and high-tech manufacturing. Shanghai has evolved into a major manufacturing and R&D hub for Merck’s advanced display materials, exemplifying its role in driving global value creation — a model Horn described as “in China, for global.”

Economist David Blair highlighted the strategic policy approach behind Shanghai’s rise. “Shanghai keeps the prices of operation low while linking to the real economy. That’s the key for Shanghai’s growth and for China’s growth — emphasizing new technologies linked with real production,” he said.

The city’s appeal is reinforced by its consumer market strength. Toshinobu Umetsu, CEO of Shiseido China and Travel Retail, pointed out that the brand operates two R&D centers in Shanghai, benefitting from a local market that fosters innovation. “The Chinese market gathers very savvy and forward-looking consumers, providing us with profound market insights,” he said. “Shanghai is an ecosystem builder. We are accelerating cooperation with local partners. China gives us inspirations.”

In a written message to the roundtable, Jean-Paul Agon, Chairman of L’Oréal Group, stated that Shanghai remains the company’s “heart in China and North Asia,” functioning as a strategic engine for innovation, talent development, operations, and sustainability.

According to official data released in July, Shanghai is now home to 1,042 multinational regional headquarters and 605 foreign-funded R&D centers, underscoring its role as a leading global gateway for enterprises managing international supply chains.

This growth is supported by what executives describe as a highly reliable policy environment. Isabelle Hannedouche, Managing Director of Sodexo Greater China, praised the “trustful environment” created by strong cooperation between government and industry. “Shanghai offers a fair and balanced ecosystem to enable companies providing the right service with the right standard in a very compliant way. It showcases the inclusiveness of the city,” she said. “We have people with very different backgrounds, here, we have a way to be able to attract them, retain them and give them opportunities to grow.”

Confidence in Shanghai remains robust among foreign investors. Local authorities reported that 4,223 new foreign-funded enterprises were approved from January to August, marking a 3.9% increase compared to the same period last year.

Shanghai’s role is viewed as a critical indicator of China’s broader economic direction. As Chinese leaders convened on Oct. 20–23 for a major Party meeting to shape the country’s next five-year plan, observers expect China to continue pursuing high-level opening-up and innovation-led growth — a stance that counters global trends toward protectionism and unilateralism.

“The Chinese government is building a unique global ecosystem, with the country taking on a greater role in global investment,” said Rani Jarkas, Chairman of Cedrus Group, noting that advancements in AI and battery technology are providing new options for international markets.

A similar perspective was echoed by Matthias Berninger, Executive Vice-President for Public Affairs, Science, Sustainability & HSE at Bayer AG, who stated in a written address: “In the past, it was ‘in China, for China’. Now, it is ‘in China, for the world’.”

Panelists also highlighted International Services Shanghai, the multilingual portal launched last year by the Shanghai municipal government. The platform provides policy information, business resources, news, and practical services covering employment, education, travel, and shopping, specifically designed to support the city’s growing expatriate population and international talent base.