Shanghai Takes the Lead: At the Core of China’s New Strategy to Attract Foreign Investment
This article was originally published in Italian in Panorama on 6th May 2025.
Please note that this is a courtesy translation of the Italian language article originally published in the Panorama Magazine Issue at: https://www.panorama.it/attualita/economia/shanghai-rilancia-al-centro-della-nuova-strategia-cinese-per-attrarre-investimenti-esteri
Amid growing geopolitical tensions, market volatility, and an uncertain global economic recovery, China is seeking to reverse course and strengthen its strategy of opening up to the world. In this pivotal phase, Shanghai reaffirms its role as the driving force behind national policies aimed at attracting international investment, consolidating its position as a bridge between China and the rest of the world.
The recently adopted “2025 Action Plan for Stabilizing Foreign Investment”—approved by the State Council of the People’s Republic of China on February 10 during an executive meeting—is more than a response to global economic uncertainty. It signals Beijing’s clear commitment to making the Chinese market more competitive and welcoming for foreign enterprises. For European and Western businesses, this shift is particularly significant: China is transitioning from a growth model driven by volume to one focused on quality and innovation, opening new opportunities in key sectors such as technology, advanced services, and sustainable industry.
As China’s financial hub and primary gateway for foreign investors, the Municipality of Shanghai has swiftly responded to the new national guidelines. On February 25, the Municipal Commission of Commerce convened an extraordinary meeting with district representatives to define operational strategies for implementing the plan.
During the session, Deputy Director He Dongbin urged local districts to intensify efforts to meet quarterly targets, with a particular emphasis on strategic areas such as Pudong—Shanghai’s financial engine—and Jinshan, a rapidly expanding industrial zone. He encouraged the prompt conversion of contractual agreements into tangible investments.
At the same time, Shanghai is stepping up its global outreach through institutional missions, participation in major international forums, and new collaborations with foreign companies and financial institutions. The city has already developed a detailed roadmap outlining investment opportunities, including major real estate projects, M&A transactions, and strategies for reinvesting profits generated in China. These efforts are designed to provide foreign businesses with greater security and stability in an increasingly unpredictable global landscape.
For Italy, the strengthening of Shanghai’s foreign investment policies presents a concrete opportunity. Italian companies—especially those in the luxury, advanced manufacturing, and technology innovation sectors—stand to benefit from a more open regulatory environment and targeted incentives aimed at expanding their footprint in the Chinese market. Many Italian firms have already established a solid presence in Shanghai, leveraging the city as a hub for the broader Asian region. The further liberalization of key sectors and the streamlining of administrative procedures could pave the way for new investments and enhance synergies between Italian enterprises and Chinese partners.
Shanghai’s strategy is not only a response to today’s economic challenges but a clear statement of intent: the city aims to solidify its role as a key destination for international investment and a benchmark for global businesses.
Looking ahead, the success of these measures will hinge on their effective implementation and Shanghai’s ability to sustain investor confidence. Competition among Asia’s major financial centers is more intense than ever, and Shanghai understands it must offer not only financial incentives, but also a stable and predictable regulatory environment. For Italian businesses, the city represents a strategic bet: a dynamic and evolving market, rich with opportunities for those ready to invest in innovation and long-term growth. The message is clear: China’s door remains open—and Shanghai is ready to welcome those who are prepared to seize the moment.
By: Avv. Carlo D’Andrea, National Vice President of the European Union Chamber of Commerce in China and Chairman of the Board of the Shanghai Chapter，Founder and Managing Partner of D’Andrea & Partners Legal Counsel
