Shanghai vows to cut red tape as China steps up foreign investment drive

China’s financial hub is putting in more effort to attract and retain overseas capital as economic, trade landscape grows more uncertain

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Shanghai, China’s financial capital, is redoubling its efforts to attract foreign investment. Photo: Xinhua

Published: 10:00am, 26 Mar 2025Updated: 11:31am, 26 Mar 2025

Authorities in Shanghai have pledged to shy away from excessive regulations and better protect corporate rights as the city strives to attract investment amid geopolitical tensions and economic headwinds.

China’s financial hub is refreshing its campaign to woo foreign firms and capital, launching a week-long investment promotion event on Tuesday.

Shanghai is “expanding high-level opening up … and continuing to create a first-class business environment that is market-oriented, legalised and internationalised,” said Mayor Gong Zheng in his opening address.

“We will make sure not to disturb you unless necessary and respond to your requests in a timely manner,” he assured business representatives from China and abroad.

The event followed a meeting between executives of leading multinationals and high-level officials in Beijing earlier this week, where Premier Li Qiang pledged to open up more of the world’s second-largest economy to international investors.

China’s concerted push for foreign investment comes as the country struggles to counteract the impact of heightened US tariffs and restrictions on the technology trade. Shanghai, a major export hub and location of preference for the regional headquarters of global firms, has been hit hard by the West’s broad de-risking strategy.

Tariffs from the US and even Europe are making Chinese products a bit less competitive price-wise

Kilian Aviles, Dekra Group