SFC Markets and Finance | "Pudong Parallel Session" Disclosed, Global Insights on Pudong

南方财经全媒体记者杨雨莱 李依农 广州、上海报道

"Pudong Parallel Session" Disclosed on Nov 6

The parallel session of the 7th Hongqiao International Economic Forum (HQF)—Pudong and the World: High-Standard Institutional Opening-up For New Development Opportunities was held in Shanghai on November 6. First, let's hear the insightful thoughts from our keynote speakers.

Erik Solheim, Former Under-Secretary-General of the United Nations 

Shanghai is one of the most miraculous cities in the world. No other city in human history, except Shenzhen, has developed so rapidly over such a short span into a high-tech, world-class green metropolis.

I have two suggestions for Shanghai. First, Pudong and Shanghai should continue to develop as a green showcase city for the world. And secondly, Shanghai and Pudong should act as a bridge between China and the outside world, particularly in the area of business.

Please continue to develop Shanghai and Pudong as a green city. People around the world, those from low-green cities, have a way of measuring it—people want to live in green cities. Pudong is already green, and Chinese cities, by and large, are fantastically green. Shanghai has a huge wetland right in the city center. This "plague" in Hongqiao is restored. Its "Old Glory" called Ding Shan Lake, has been brought back from heavy pollution into a beautiful place with green pathways, biking areas, walkways, and walking areas for the people, and of course, Pudong. Shanghai has a huge amount of trees that, when continued, will make the city even greener, to showcase this to the world.

If international companies feel they can succeed in the Chinese market, they will become advocates for global trade and help defeat protectionism. So, facilitating the success of international wind, solar, electric, or tech companies in the Chinese market will also help China in other markets. Ensuring that global companies succeed in the Chinese market will encourage Chinese companies to invest more in Europe and other markets. And of course, this is not a one-way street discussion, (but) between Chinese leaders and European leaders can make this more likely. And I believe Shanghai has a bright future where it can play a critical role in bringing together the West and other markets with China.

Zhang Junkuo, Deputy Director of the Proposal Committee of the 14th CPPCC National Committee

For the Shanghai Free Trade Zone (SFTZ), accelerating the advancement of high-standard institutional opening up is both a necessity for its own development, and a major mission entrusted by the country.

Since its establishment, the SFTZ has kept its mission in mind, actively exploring and boldly innovating to constantly improve the level of institutional opening up, gaining experiences of success. While realizing its own development, it has made outstanding and significant contributions to the overall reform and opening up of China.

Pudong should make full use of its high-level opening up platforms, including the free trade pilot zone and comprehensive trials for further opening up of the services sector. It should combine openness with reform and accelerate the opening up of key service sectors such as telecommunications, the internet, education, and culture. It should focus on cross-border data flow and balance openness and security to facilitate foreign companies in China to operate transnationally and participate in global research and development.

In addition, it has been made clear that in terms of biotechnology, foreign-funded enterprises are allowed to engage in the development and application of technologies including human stem cells and gene diagnosis and treatment in the SFTZ and Hainan Free Trade Port. China plans to allow wholly-owned foreign hospitals in cities such as Shanghai.

Next, with the guidance from the spirit of the Third Plenary Session of the 20th CPC Central Committee, we will speed up the implementation of these policies and rapidly release the policy dividends of reform and opening up. High-standard institutional opening up should be leveraged to form an open and innovative ecosystem with global competitiveness. This requires the free trade zones to combine their realities with the needs of national development to actively explore innovations in practice and put forward specific and actionable opinions and suggestions.

Global Enterprises Thrive in Pudong

Pudong has long been a front-runner in China’s high-level openness, attracting numerous foreign enterprises. Currently, Pudong is home to 42 international economic organizations, 346 Fortune Global 500 companies, and the regional headquarters of 468 multinational corporations. At the forum, executives from multinational companies shared their development stories in Pudong. Let’s find out what they have to say. 

Christian Bruch, President and CEO of Siemens Energy AG

China's energy industry has rapidly developed, thanks to its sustained technology innovation, excellent companies, robust supply chain and its large market.

In 2023, China's newly installed renewable energy capacity accounted for more than half of the global total capacity. And based on a strong home market, Chinese companies have also become key players in the global energy market. Global energy transition will not be possible without China. In 2019, we established Siemens Energy in the Shanghai Free Trade Zone. Since then, Shanghai Pudong has been our base in Greater China. Last October, we opened our new regional headquarter here in Pudong. We are a strong partner of the country and the city of Shanghai. We are happy citizens of Shanghai.

Shanghai is advancing green and low carbon energy，a modern and sustainable energy system to support its growth as a mega city. For Shanghai to achieve high quality growth, it must also be an incubator for innovative technologies. New technologies are something Siemens Energy can offer. At our regional office and headquarters here in Pudong, we established the Sino-German Low-Carbon Energy Research Center with our partners. This center unites and brings together global research talents, integrates industry, academia, research and application. Siemens Energy will continue to work with partners in China to accelerate green and low carbon energy technologies from lab to markets. 

Marc Horn, EVP, President of Merck China 

We've been in China, particularly in Shanghai since 1933. Our first location was at the Peace Hotel, where we opened a pharma shop. So, we have a very strong root here, and we really feel at home in Shanghai itself. China for us is now the second-largest market in the world, and not only from a patient and customer perspective, but also a source of inspiring innovations, which is something where we try to collaborate.

Currently, out of the 5,000 people we have in China, we have three R&D centers in China. We have roughly 1,700 people working in Pudong, with two R&D centers, one for life science and one for electronics. We also have two regional headquarters here. When we look at the collaborations we do here, I think Pudong has always been a pilot when it came to opening up and grasping the new mega trends in China.

At the moment, when you look at the mega trends, it's about digitalization and how to develop biopharmaceuticals, life science, and new materials overall. We feel very much at home because we have here in Pudong serving roughly 10,000 local and international companies from a life science perspective. 

Maximilian Foerst, President and CEO of ZEISS Greater China 

We came to Shanghai in the early 1990s and to Waigaoqiao Pudong of the Free Trade Zone in 1999. This was the start of an explosive growth, and it was clearly a very good thing that we came to Pudong in those days. Today, the business model has changed, but Pudong is flexible, and it has changed with us.

Currently, we are practically 100% localized in our manufacturing in Shanghai, as examples of how the ecosystem in Pudong and Shanghai are helpful. We have two different topics. One is homegrown, internally developed with the people we have in Pudong, in the area of new energy vehicles where we are working together with the top battery manufacturers, developing solutions to enhance in-line quality of batteries, so that to improve the safety and efficacy of batteries throughout their lifetime. These are ideas and competence which have been built up in Pudong.

The second one is leveraging the local ecosystem. There are a lot of interesting new young companies, very active in the biotech area. Here we have products which we're also presenting at CIIE, together with a small startup from Shanghai.

And clearly, if we look forward, the growth will be coming out of innovation. This is where we are heading as a company here in Pudong and in Shanghai. 

Global Investment Partners' Voices for Pudong

With its openness, innovation, and sustainable development, Pudong New Area is emerging as a vibrant model of a modern city. Several global investment partners spoke up for Pudong New Area, sharing from multiple angles why the area has a powerful magnetic appeal that attracts the world’s top companies.

Patricia Xia, EY China Central Managing Partner

In order to help enterprises grow better, Pudong has launched a series of cultivation programs, such as the Global Operator Program (GOP) and the Gathering of International Economic Organizations Program (GOC), gathering the global advanced resources in Pudong. And it provides continuous support of Pudong Headquarters Service Center for companies, to enhance the attractiveness for global talents.

When the number of enterprises gradually increases, the key to bolster their growth lies in continuous empowerment. To ensure the efficient operation of headquartered enterprises, Pudong has formed a service "ecosystem" with government services and active participation of social professional organizations. Through professional empowerment, "one enterprise, one booklet" service measures to ensure that enterprises receive customized all-round services in Pudong.

When the headquarters ecosystem gathered advantageous factors and the intra-industry and cross-industry innovative synergies, Pudong achieved a further leap both in quantity and quality. As one of the six core industries in Pudong, innovative pharmaceuticals have witnessed many successful cases, and many high-capacity pharmaceutical companies have built up an innovative ecosystem with close collaboration and resource sharing in Pudong.

Sherri He, Managing Director of Kearney's China Unit

Innovation capabilities has become the primary factor attracting foreign investment in China. The Pudong New Area government released its Group Open Innovation (GOI) plan, which has gathered 103 leading enterprises to share their innovation resources with small and medium-sized enterprises to incubate and empower. We know that 5,000 small and medium-sized enterprises are now benefiting from this, which is a true example of Shanghai’s and Pudong's commitment to building innovation capabilities.

With unremitting efforts since 2017, Shanghai has upgraded its policy environment to phase 7.0, covering all basic services and value-added services throughout the entire life cycle of a business.

If we look back at Pudong, we can see that it is a policy testing ground for pilot implementation. The Pudong government has made full use of the advantages of pilot implementation to introduce 18 Pudong New Area regulations and 29 management measures, such as business registration management reforms.

Looking to the future, we are confident that the Pudong government will make breakthroughs, keep pace with the times, continue to lead the major projects of improving the business environment in Shanghai and the whole country, and continue to reach new heights in business environment.

Li Qingwen, Managing Director, East China, Cushman & Wakefield

As we all know, Economic development is the most important basis of modern city development. Pudong New Area is creating seven industrial clusters, including Lujiazui Finance City, Zhangjiang Science City, Expo International City, and Lingang Future City, with a diverse range of options. In addition, a Cushman & Wakefield study also found that green buildings are an important indicator for for corporate site selection.

Last year, Shanghai led the world in the number of certified businesses. In terms of the number of green building projects declared in Shanghai last year, Pudong accounted for one-third of the total, also in the lead. Pudong New Area will uphold the innovative concepts of reform and opening up, and continue to upgrade city capacity and quality.

策划：于晓娜

监制：施诗

编辑：和佳

记者：杨雨莱 李依农 实习生李宥瑾

制作：蔡于恬 李群

新媒体统筹：丁青云 曾婷芳 赖禧 黄达迅

海外运营监制: 黄燕淑

海外运营内容统筹: 黄子豪 

海外运营编辑：庄欢 吴婉婕 龙李华 张伟韬

出品：南方财经全媒体集团