Pudong's paid-in foreign capital up 36.6% in Q1
Sam's Club China plans to open its largest single-floor outlet in Pudong New Area, Shanghai in 2021. [Photo provided to chinadaily.com.cn]
Paid-in foreign capital in Shanghai's Pudong New Area grew by 36.6 percent year-on-year to $2.16 billion in the first quarter of this year, accounting for 47.4 percent of the city's total amount, according to statistics released by the commerce commission of Pudong.
Statistics show that the area's total paid-in foreign capital in March was valued at $888 million, up 45.8 percent year-on-year.
The surge was a result of Pudong's strong ability to attract foreign investment, and is expected to help boost the confidence of foreign investors and raise market expectations in the area.
In addition, the establishment of the Jinqiao Comprehensive Bonded Zone on April 21 has resulted in nine new investment projects for the area, including Festo, a German multinational industrial control and automation company. It has established its Asia-Pacific logistics and R&D (research and development) center in Jinqiao. The center has 42,000 square meters of warehouse area and is expected to begin operating in March 2021.
"We invested in Jinqiao more than 20 years ago and have full confidence in Pudong's development as its business environment has continued to improve in recent years," said Chen Feng, Festo's Greater China vice-president.
Pudong has beefed up efforts to attract foreign investment despite the impact of the COVID-19 epidemic.
Earlier this month, the Shanghai municipal government issued certificates to the regional headquarters of 21 transnational companies and 10 foreign-invested R&D centers.
Eight of the headquarters, along with five R&D centers, were located in Pudong. This accounts for 38.1 percent and 50 percent, respectively, of the city's total.
Most of the certificated companies were industrial leaders such as French biotech company Bio-Merieux, Irish pharmaceutical company Allergan, and Japanese trading company Itochu.
In addition, some foreign firms have continued to increase investment in Pudong. US retail giant Costco, which opened its first store in Shanghai last year, plans to open its second store in the area at the end of 2020 or beginning of 2021.
Sam's Club, the high-end membership store owned by Walmart, is expected to open a flagship store in Waigaoqiao, Pudong by 2021. The outlet, occupying an area of over 70,000 sq m, will be Sam's Club's largest single-floor outlet in China and will be primarily a shopping and entertainment destination.
German supermarket chain Aldi also opened its second store in Pudong on April 9.