Foreign investment transformation is a key priority set for the city by Chen Jining, Secretary of the CPC Shanghai Municipal Committee. During his visit to Jing'an, Chen set higher expectations for the district's efforts in advancing foreign investment transformation and fostering substantive growth in the headquarters economy. He encouraged Jing'an to play a leading role, take proactive steps, and make contributions to the city's efforts to transform foreign investment. Jing'an District has resolutely shouldered its mission and responded swiftly to the call. Through dedicated research and practical initiatives, the district is committed to answering the pressing question of transforming foreign investment.
In advancing the transformation, Jing'an District has conducted thorough research and systematic analysis focusing on key industries and enterprises. The findings indicate that R&D innovation is fundamental for foreign-invested enterprises to operate and develop in China. It serves as the core driver for achieving a significant upgrade in their capabilities.
By increasing investment in R&D innovation, foreign-invested enterprises can effectively enhance their core competitiveness and steadily improve operational quality and efficiency. This, in turn, strengthens their contribution to the regional economy, fosters a more robust industrial ecosystem, and creates a symbiotic and win-win dynamic between corporate growth and regional prosperity. The critical role of R&D innovation in transforming and upgrading foreign investment is vividly demonstrated by diverse initiatives: Foreign-invested enterprises in the biomedicine and beauty and health fields accelerate the establishment of R&D centers and enhance local innovation conversion. Enterprises specializing in high-end consumption and professional services focus on localized innovation and refine their product and service offerings. Among leading enterprises in key industries within the district, biopharmaceutical companies such as Sanofi, Bristol-Myers Squibb, and Pfizer concentrate on core technologies and R&D pipelines, continuously upgrade their flagship products, strengthen global competitiveness, and sustain revenue growth. Beauty and health companies like L'Oréal, Clarins, and dōTERRA conduct in-depth localized R&D and adaptation in Jing'an and collaborate with the district to establish a hub for medical-cosmetic innovation. Their brand competitiveness and market share have steadily increased year by year.
In response to contemporary challenges and based on thorough research, Jing'an has introduced eight innovative measures to support the transformation and upgrading of foreign-invested (headquarters) enterprises—known as "Jing'an Eight Measures for Foreign Investment Transformation". Leveraging institutional innovation, industrial empowerment, and enhanced services, Jing'an is systematically developing a distinctive model for foreign investment transformation. Offering full-cycle support for the innovative development and functional upgrading of foreign-invested enterprises in China, Jing'an aims to set a benchmark for high-level opening-up in central urban areas and high-quality growth of the foreign investment economy.
I. Definition of the Jing'an model for foreign investment transformation
The Jing'an model for foreign investment transformation is a high-quality paradigm for open development. Building on Jing'an's strengths as an international hub, the model is driven by both R&D innovation and global resource allocation. Through institutional innovation, industrial empowerment, and enhanced services, it facilitates the upgrading of foreign-invested enterprises—especially headquarters—from management and sales to innovation and R&D, from regional functions to global hubs, and from standalone operations to collaborative ecosystems. This model represents an exploration of high-level opening-up in central urban areas and enhancement of the foreign investment economy's quality and efficiency.
Its core framework consists of a four-in-one approach of "innovation-driven growth, enhanced capabilities, reform-enabled empowerment, and policy support". This framework ensures tangible implementation at every stage, turns the model from concept into reality, and fosters a more internationally competitive and leading open ecosystem in Jing'an:
(1) Innovation-driven growth activates new momentum for R&D
Jing'an moves beyond the traditional model where foreign-invested enterprises prioritize sales over R&D. By transforming foreign-invested headquarters from management and sales service hubs into centers for innovation and R&D, it aims to build a multi-tiered innovation ecosystem driven by industry leaders, supported by platforms, and fostered through collaboration. The initial phase concentrates on areas of strength such as biomedicine, beauty and health, and high-end consumption, creating a seamless cycle from local innovation to achievement transformation, enterprise upgrading, and industry advancement.
In the field of biomedicine, Sanofi is expanding its presence in Jing'an with plans to establish a China-based R&D innovation center. This initiative aims to strengthen global R&D collaboration and local industry-academia-research integration, accelerate the international co-development of new drugs and the launch of innovative medicines first in China, and expedite patient access to breakthrough therapies in critical areas. In the beauty and health sector, Clarins has chosen Jing'an for its first overseas laboratory and its second-largest global R&D center. The center focuses on the skincare needs of Chinese consumers and collaborates with the Paris headquarters on everything from texture and fragrance to packaging. This ensures that high-end beauty products truly resonate with the Chinese market and drives localized innovation for global beauty brands.
(2) Enhanced capabilities for building a new hub for resource allocation
Jing'an has established a tiered incubation mechanism for foreign-invested headquarters to support enterprises' evolution from single to integrated functions and from regional to global roles. This enhances enterprises' decision-making authority in areas like global strategy, business planning, resource allocation, and fund settlement. The district encourages foreign-invested enterprises to establish industrial investment funds, engage in mergers and acquisitions, build cross-sector cooperation platforms, integrate into the global service provider ecosystem, and foster deeper connections within the domestic and international dual circulation.
As a leading enterprise in Jing'an's beauty industry, L'Oréal has pioneered the transformation path. It has established its North Asia headquarters in Jing'an and its largest Asia-Pacific R&D center in Shanghai. Leveraging the regional innovation incubation platform of Beauty Nova Tech Hub, L'Oréal collaborates with top medical institutions and local beauty brands for cross-sector R&D to drive innovation in China and empower the global market. Additionally, in partnership with Jing'an District, it established the Beauty & Innovation Future Private Investment Fund to deepen its focus on beauty technology and promote local innovations worldwide.
To date, Jing'an has attracted 148 multinational headquarters and over 6,100 foreign-invested enterprises. It leads the city in headquarters economic density and global brand concentration, with many foreign-invested enterprises evolving from sales hubs in China to global functional roles.
(3) Reform-enabled empowerment enhances the business environment ecosystem
Jing'an is committed to aligning with international high-standard economic and trade rules. The district has enhanced supporting systems for high-level talent recruitment and development, cross-border data flow, cross-border financial services, and bonded exhibition and trading by focusing on the challenges faced by foreign-invested enterprises and leveraging institutional innovation to overcome development bottlenecks. It aims to build a full-cycle, professional, and international business service brand that enables foreign-invested enterprises to operate, grow, and transform rapidly in Jing'an. To address the specific development needs of foreign-invested enterprises, Jing'an regularly hosts roundtable meetings and conducts corporate visits, effectively resolving business challenges and strengthening the service foundation for foreign investment transformation.
Leveraging Jing'an Global Connect, the district aims to establish a benchmark for one-stop cross-border data services in the central urban areas. By focusing on the practical needs of foreign-invested enterprises and international R&D institutions, Jing'an optimizes end-to-end services, including data outbound security assessments, and ensures secure, compliant, and efficient data flow channels. This provides robust support for foreign-invested enterprises in conducting international R&D innovation and enhancing their capacity to allocate global innovation resources.
The transformation of the century-old Zhang Yuan epitomizes Jing'an's ongoing exploration of institutional openness and innovation, as well as new models for international trade. In partnership with Customs, Jing'an has pioneered a bonded supervision model for heritage buildings, established a dedicated bonded warehouse, and introduced a solution that integrates the bonded warehouse with exhibition and trading. The district supports international brands in cross-border "front store and back warehouse" operations, transforms historic landmarks into new international trade platforms, and enables multinational companies' latest innovations to enter the Chinese market efficiently.
(4) Policy support lays a solid foundation for transformation
Addressing foreign-invested enterprises' core needs, Jing'an has formulated and launched the "Jing'an Eight Measures for Foreign Investment Transformation" to support the transformation and upgrading of foreign-invested (headquarters) enterprises. It builds a comprehensive, targeted, and efficient policy framework that accelerates the upgrading of foreign investment transformation and fosters the substantive growth of the headquarters economy. These measures focus on enhancing R&D innovation capabilities by strengthening support for foreign-invested R&D innovation initiatives, fostering the growth of various innovative institutions, and stimulating the internal dynamism of foreign investment innovation. They also aim to build a hub for headquarters economy through a multi-tiered cultivation mechanism for foreign-invested headquarters, encouraging headquarters to expand their functions and evolve into core hubs for global resource allocation. In the realm of two-way opening, the measures support foreign-invested enterprises in enhancing decision-making authority, introducing high-quality incremental business, and deeply integrating into the Chinese market. Moreover, they help enterprises optimize global service capabilities, collaborate with domestic enterprises to expand overseas, and jointly create a new international development paradigm featuring mutual empowerment and win-win cooperation. Furthermore, addressing the full-cycle needs of foreign investment development, the measures provide targeted support in areas such as investment promotion and talent services. They comprehensively adapt to the diverse requirements of foreign investment transformation to ensure the effective and sustainable implementation of the Jing'an model.
II. Why Jing'an?
Jing'an boasts irreplaceable core strengths in foundation, industries, ecosystem, and functions. Supported by a mature headquarters economy, precise industrial alignment, and a professional service system, it stands as the city's benchmark district with the capability to pioneer foreign investment transformation.
(1) The strongest foundation for opening up and deep-rooted foreign investment
During the 14th Five-Year Plan period, Jing'an's GDP and district-level general public budget revenue exceeded RMB 300 billion and RMB 30 billion, respectively. Its total foreign trade import and export volume reached RMB 484.51 billion, with accumulated actual foreign investment of USD 4.51 billion. The district's foreign-related economic scale has ranked first among central urban areas for 10 consecutive years. Jing'an hosted one-third of Shanghai's high-level professional service agencies and established the city's first high-quality product import demonstration zone. Leading the city in foreign investment contribution and headquarters concentration, Jing'an has built a solid economic foundation for foreign investment transformation.
(2) The most aligned industries and abundant transformation scenarios
Leading sectors such as biomedicine, beauty and health, and high-end consumption align closely with the transformation goals of foreign investment in R&D innovation and functional upgrading, thus fostering a highly competitive industrial ecosystem.
Jing'an is a hub for global cosmetics headquarters in Shanghai, home to leading brands like L'Oréal and Clarins. Supported by the Beauty Nova Tech Hub and top-tier medical resources, it has cultivated a skin health industry cluster valued at hundreds of billions of RMB.
The district leads central urban areas in total retail sales of consumer goods, with total merchandise sales consistently exceeding RMB 1 trillion. As the core area of the International Consumption Center City, it brings innovation closer to the consumer market and accelerates achievement transformation.
One-third of the world's top 50 biopharmaceutical companies have established operations in Jing'an, forming a robust industrial cluster. Home to Grade-A tertiary hospitals such as Huashan Hospital Affiliated to Fudan University, Huadong Hospital Affiliated to Fudan University, and Shanghai Tenth People's Hospital, the district has created a three-dimensional healthcare service system that covers the entire life cycle. This offers valuable resources and extensive application scenarios for foreign-invested enterprises to conduct clinical research, testing, and application of their innovative products.
Mature platforms, including the High-Quality Product Import Demonstration Zone and the city's first batch of equity investment clusters, offer comprehensive support for foreign-invested enterprises in bonded transactions, innovative investment, and R&D transformation. These platforms provide the necessary infrastructure, space, and pathways for foreign investment transformation.
(3) The most professional service system and strong confidence in reform
Jing'an enjoys a well-established policy framework, including "Jing'an Eight Measures for Foreign Investment Transformation", Global Service Provider Program, and Jing'an Elite Initiative. It leads the city in the supply of professional services in areas like cross-border data, cross-border finance, and talent support, supported by an efficient and smooth government-enterprise coordination mechanism. To address the key challenges in foreign investment transformation, Jing'an has offered tailored services that provide comprehensive support throughout the entire process—from project implementation and problem-solving to resource coordination. The district's targeted services have contributed to R&D innovation and upgrading plans of Sanofi and Bristol-Myers Squibb, as well as the continued increase in innovation investment by dōTERRA and Clarins.
(4) The most aligned functional positioning and a clear mission
As a key hub for Shanghai's "Five Centers" initiative, Jing'an bears the core mission of enhancing global resource allocation, driving scientific and technological innovation, leading high-end industries, and serving as an open gateway. This urban positioning aligns closely with the objectives of foreign investment transformation. During his visit to Jing'an, Secretary of the CPC Shanghai Municipal Committee set higher expectations for the district's efforts in advancing foreign investment transformation and fostering substantive growth in the headquarters economy. He encouraged Jing'an to play a leading role, take proactive steps, and make contributions to the city's efforts to transform foreign investment. This further reinforces Jing'an's mission and entrusts it with the crucial role of pioneering new approaches and breaking new ground.
Additionally, the spatial layout featuring "Two Developmental Axes with One Gathering Zone and Three Areas" is well-defined, supported by mature mechanisms for inter-district collaboration and regional coordination. This framework orchestrates the entire value chain—from innovation and R&D to industrial application and commercial implementation. It not only accommodates the high-end functions of foreign-invested headquarters but also drives quality and efficiency improvements in foreign investment across the city. This gives Jing'an a natural advantage in leading exploratory initiatives.
III. Why now?
We are now at a pivotal moment where the national strategy, the city's mission, Jing'an's development stage, and corporate needs converge. With closely aligned internal and external environments, development stages, and corporate demands, advancing foreign investment transformation is both timely and essential, backed by both top-level guidance and practical needs.
(1) National strategy sets the direction, and high-level opening-up is urgent.
China is advancing institutional opening-up and emphasizing high-quality development driven by innovation. This calls for shifting the core of the foreign investment economy from scale expansion to value enhancement and moving beyond extensive investment attraction to focus on cultivating high-caliber, innovative foreign investment. As Shanghai's forefront for opening-up, Jing'an must lead the way by breaking from traditional foreign investment models and exploring new approaches to transformation. This supports the nation's high-level opening-up and fulfills Jing'an's role in developing into a modern international district that showcases Chinese modernization.
(2) The city's mission focuses on key challenges, and the 15th Five-Year Plan charts the course.
Shanghai's 15th Five-Year Plan prioritizes strengthening four major functions, with the transformation and upgrading of foreign-invested headquarters identified as a top priority for Jing'an's high-level opening-up. Building on the solid foundation laid during the 14th Five-Year Plan period, which saw the development of Jing'an's foreign investment, headquarters, and open economies, the district now aims to transition from a hub for foreign investment to one for foreign investment innovation. This transformation will enhance the city's overall capabilities and support Shanghai's goal of becoming a global city of excellence—a mission integral to Jing'an's urban development.
(3) Jing'an enters a new development stage and proactively plans for quality growth.
After years of opening-up and development, Jing'an's foreign investment economy has moved beyond the phase of quantitative accumulation and entered a critical period of qualitative leap. It is now equipped with strong confidence and mature conditions necessary to drive foreign investment transformation. To meet the core requirements of high-quality urban development, Jing'an has proactively moved beyond reliance on traditional models for developing foreign investment. By planning the transformation, introducing targeted policies, and refining its service system, the district is actively fostering new growth drivers and enhancing its core competitiveness. Advancing foreign investment transformation now serves a dual purpose for Jing'an. It is a practical step to leverage the district's openness, revitalize existing foreign capital, and attract high-quality new investment. It is also a strategic move to establish a benchmark for high-quality foreign investment development in Shanghai and nationwide. This initiative fully shows the robust strength of "International Jing'an" and achieves mutual enhancement and a win-win outcome for both the district's development capacity and the quality and efficiency of foreign investment.
(4) Enterprise growth aligns with current needs, and collaborative transformation enables mutual empowerment.
Multinational companies are now at a critical period of strategic adjustment. Most companies move beyond the singular model of "selling in China" to embrace "innovating in China for the world". This shift creates an urgent need for comprehensive support in areas such as R&D platforms, data flows, talent, investment and financing facilitation, and bonded transactions. With its robust industrial ecosystem, targeted policies, and professional business services, Jing'an effectively addresses the key challenges in foreign-invested enterprises' transformation and swiftly responds to their development needs. This creates fertile ground for enterprises to deepen their roots in the Chinese market and pursue innovation-driven upgrades. Leading foreign-invested enterprises like L'Oréal and Sanofi have taken the lead in ramping up their transformation efforts. This not only demonstrates the strong alignment between Jing'an's transformation planning and corporate needs but has also spurred many other foreign-invested enterprises to follow suit. A virtuous growth cycle featuring proactive government guidance, enthusiastic corporate response, and mutual collaboration and empowerment has been formed.
The Jing'an model for foreign investment transformation reflects both the district's commitment to serving the national strategy and fulfilling the city's mission, and the optimal path for foreign-invested enterprises to establish roots in China, deepen their presence, and achieve shared future success. Moving forward, Jing'an will align closely with the 15th Five-Year Plan for opening-up, foster innovation through openness, strengthen functions via innovation, and enhance the ecosystem with quality services. By advancing foreign investment transformation, Jing'an aims to set a national benchmark for high-level opening-up and contribute its wisdom and solutions to enhance the quality and efficiency of the foreign investment economy in Shanghai and across China.