PETALING JAYA: Shanghai has announced 30 new measures to attract multinational corporations (MNC) to set their headquarters there, according to state-owned Global Times.
In a late report on Tuesday, the news portal said the Shanghai municipal government will relax investment restrictions and provide facilities for transnational corporations to establish regional headquarters in the municipal.
Quoting Wang Jun, a deputy director of the Department of Information at the China Center for International Economic Exchanges, Global Times reported: “Shanghai aims to be an international hub of finance, transportation and innovation. Encouraging more companies to establish headquarters in Shanghai is in line with the city's international position.” "It means that there will be a huge influx of human and capital resources that will in turn attract more businesses, especially in the service sector," Wang told Global Times in an interview.
According to the news report, Shanghai will lower the total asset requirements for parent companies of those establishing regional headquarters there to US$200mil from US$400mil.
For quasi headquarters, the requirements will be lowered to US$100mil.
Among the new measures are cancelling the requirement that regional headquarters must be sole proprietorships.
Other measures include making it easier for senior managers of foreign companies establishing headquarters in Shanghai to hire foreigners as domestic staff.
In the first four months this year, Shanghai's new foreign-invested projects, contractual foreign investment and real foreign investment grew by more than 205 year-on-year, reported Global Times quoting Xinhua News Agency.
Pfizer opened the global headquarters of its generic and off-patent drug unit Pfizer Upjohn in Shanghai on May 30 -- the first of its kind for a multinational drug company.
“The relaxation of the asset requirements is intended to encourage more international companies, especially those in the services sector, to set up headquarters in Shanghai,” Wang said.