Event shows Shanghai's rise as business powerhouse

At the forefront of China's reform and opening-up, Shanghai is spearheading the world's second-largest economy's push for high-quality development, forging a path built on international collaboration and inclusive innovation, economists and executives said.

They made the remarks on Monday in Shanghai during the "CEO: Grow with China" Roundtable, which was jointly organized by the Foreign Affairs Office of the Shanghai Municipal People's Government and China Daily.

Marc Horn, president of Merck China, said that Shanghai is really open for cooperation, which goes beyond business. "We always say, 'You need to be in Shanghai to not fall behind'," he added.

The company has been strengthening its global portfolios by utilizing Shanghai's innovation, talent and manufacturing capacity. That is how "in China, for global" happens, Horn said, noting that the city has become a key manufacturing and R&D hub for the company's advanced display materials.

Merck's presence in Shanghai is not an isolated phenomenon, but a deliberate outcome of the city's policy and positioning.

Toshinobu Umetsu, CEO of Shiseido China and Travel Retail, noted that the company has two R&D centers in Shanghai. "The Chinese market gathers very savvy and forward-looking consumers, providing us with profound market insights," Umetsu said.

"Shanghai is an ecosystem builder," he said, adding, "We are accelerating cooperation with local partners. China gives us inspirations."

Jean-Paul Agon, chairman of L'Oreal Group, said in a written address at the event that Shanghai is the company's heart in China and North Asia, serving as a strategic engine in terms of innovation, operation, talents and sustainability, among other heads.

Isabelle Hannedouche, managing director of Sodexo Greater China, said the "trustful environment" in Shanghai — a good-faith confidence between local government and enterprises — has emerged as a critical competitive edge for the city for multinational companies to thrive.

"Shanghai offers a fair and balanced ecosystem to enable companies to provide the right service with the right standard in a very compliant way. It showcases the inclusiveness of the city," Hannedouche said. "We have people with very different backgrounds, here, we are able to attract them, retain them and give them opportunities to grow."

Buoyed by the optimism widely shared by global businesses, Shanghai, according to local authorities, approved the establishment of 4,223 new foreign-funded enterprises between January and August, a 3.9 percent increase compared with the same period last year.

Shanghai's opening-up and innovation-centered policies provide a powerful counter-narrative to claims of a China turning inward. For global executives, watching Shanghai is not just about watching one city — it is about observing the future of China's engagement with the world take shape.

Rani Jarkas, chairman of Cedrus Group, said the Chinese government is building a unique global ecosystem, with the country taking on a greater role in global investment. He added that innovations in areas such as artificial intelligence and battery technology provide other countries with more alternatives.

Panelists also spoke highly of International Services Shanghai, a multilingual portal launched last year by the Shanghai municipal government, which offers a wide range of resources designed for expats.