High-level business advisory council in Shanghai helps build trust, bolster confidence of MNCs
The International Business Leaders’ Advisory Council for the Mayor of Shanghai held a meeting on Oct 15, 2023. (PHOTO PROVIDED TO CHINA DAILY)
Top executives from around the world emphasized the role that the International Business Leaders’ Advisory Council (IBLAC) for the Mayor of Shanghai has played in bridging relations between the East and West, in comments made during the 35th IBLAC meeting held on Oct 15.
Among those in attendance was Severin Schwan, chairman of the board of directors of the Roche Group and acting chairman of this year’s IBLAC, who said that face-to-face dialogues with executives of other companies and government officials during the IBLAC meeting have helped to strengthen trust and understanding.
Schwan pointed out that IBLAC members are committed to contributing to the development of Shanghai, which has served as the junction between the East and the West for centuries.
Several others also said that they are confident of Shanghai’s growth prospects and would continue to invest in the city.
Martin Sorrell, former IBLAC chairman and founder of advertising and marketing services provider S4 Capital, said the increasing number of regional headquarters and R&D centers in Shanghai reflects the confidence that foreign investors have in investing in the city.
According to the Shanghai municipal government, 940 multinational companies had set up their regional headquarters in the city as of the end of the third quarter. Forty-nine of these ventures were launched this year. As of now, there are 551 foreign-funded regional R&D centers in the city.
During the first eight months of this year, 3,877 new foreign-invested companies were registered in Shanghai, up 44.2 percent from a year earlier, according to the city’s bureau of statistics. These companies used nearly $16 billion in foreign capital during the same period, down 2.5 percent year-on-year.
Maurice R. Greenberg, chairman of Starr Insurance Companies, explained that one major reason for this confidence is the municipal government’s continued efforts to introduce policies conducive to foreign investment. The two sets of 41 policies facilitating trade and investment launched in April is one good example, he noted.
Beyond sweeping policy measures, businesses and authorities in Shanghai have also found “creative ways to further optimize the city’s business environment”, he added.
Greenberg pointed out that in late April Shanghai launched an intelligent English service for cross-border taxpayers that is aimed at expanding international tax consultation services and providing cross-border taxpayers with round-the-clock access to intelligent tax policy response services.
“These kinds of services not only increase the ease of conducting business operations but also help foreign companies feel supported in doing so,” he added.
According to Stefan Paul, CEO of global logistics giant Kuehne+Nagel International AG, Shanghai has made substantial investments in its public infrastructure that have resulted in the creation of world-class transportation systems, modern urban planning, and impressive architectural landmarks. These developments have also enhanced the city’s aesthetic appeal and contributed to its overall efficiency, connectivity, and livability.
“Shanghai is indeed a city at the forefront of world advancement, and will always hold a special place in our global business landscape,” he said.
Shanghai’s continued efforts to optimize its sea, air, land, and rail connections with the world, and its goals to become an international shipping and aviation hub will not only boost its economic vitality but also help serve the sustainable development of China’s foreign trade, said Paul.
Shanghai’s efforts to build a logistics ecosystem that ensures continuous connectivity between China and the rest of the world presents opportunities for companies such as Kuehne+Nagel, he added.
“We are seeing many customers in industries like new mobility, semiconductors, high-tech, (and) e-commerce, and a lot of transformation leaders (are) emerging in the marketplace. This offers a great opportunity for us to export the technology and the products of the Chinese giants to the rest of the world, and this would help us to grow and support our customers here in China,” said Paul.
“As such, the company will continue investing in its people, (and) technology and expertise within China, with a particular focus on Shanghai,” he added.
The meeting saw the signing of a vision statement that states that the IBLAC is committed to providing a dedicated and valuable source of global intelligence, knowledge, and practices to facilitate a higher level of openness, development, and governance in Shanghai.
The statement was signed by executives from more than 30 multinational companies attending the meeting, which was the first offline version since the pandemic swept through the world in 2020.
“IBLAC believes in engaging in constructive dialogues in response to a complex and ever-changing global environment for businesses to break boundaries, manage challenges, and identify opportunities for a substantial growth with Shanghai,” read the statement.
The IBLAC was initiated in 1989 and has grown into a think-tank for Shanghai mayors over time. Themed “Changes and New Opportunities: Making Shanghai a More Robust and Resilient International Metropolis”, the 35th IBLAC solicited suggestions and ideas from about 40 executives, scholars, and industry experts who were present at the Oct 15 meeting.
While Shanghai faces multiple challenges at present, the major trend of its high-quality development remains unchanged, Shanghai Mayor Gong Zheng said during the news conference for the 35th IBLAC on Oct 15.
Shanghai first rolled out the reform plan to optimize business environments in late 2017. The plan, which has since undergone several revisions, has resulted in the roll-out of 951 measures that have helped foreign companies prosper, said Gong.
Shanghai will refer to the World Bank’s new evaluation system for business environments, which was introduced in May, when creating more major reform measures.
Continued efforts will be made to further overcome the institutional barriers so that market entities can be better invigorated, he added.
Meanwhile, Shanghai will explore more opening-up measures in terms of cross-border e-commerce, finance, telecommunications, and professional services.
The ideas and suggestions raised by IBLAC members or over the previous editions of the IBLAC forum have given much inspiration for the measures, said Gong.
