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Shanghai a magnet for investment from multinationals
(Xinhua)
Updated: 2004-06-15 10:00

Out of the world's top 500 transnational companies, 281 have made their presence in Shanghai with combined contractual investment exceeding US$10 billion to date.

The 281 giants include 166 involved in 837 investment projects, 89 which have set up representative offices, and 26 banking and insurance companies which have opened 30 business outlets in Shanghai.

Though the 837 projects are only 2.6 percent of the total number of overseas-funded projects in Shanghai, they account for more than one-seventh of contractual overseas investment used by the city, according to the local statistical department.

Foreign investors have made a contribution to local economic development, said Shanghai Mayor Han Zheng Thursday during his visit to some multinationals' regional headquarters locally, the number of which has so far reached 67.

Shanghai is now home to 118 research and development centers established by overseas companies.

Overseas-funded enterprises contributed to more than one-fifth of local GDP in 2003, which totalled 625 billion yuan (US$73.5 billion), accounting for more than 60 percent of both local exports and industrial output value of the year.

They also contributed to more than 30 percent of local fiscal revenues in 2003, which stood at 100 billion yuan (US$12 billion), and offered jobs for one-sixth of local eight million employees.

Overseas-funded businesses are urged to play a role in building the city to be an international economic, financial, trade and shipping center, to increase cooperation with local higher-education institutions, and to help restructure local industrial setups.

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