A medical worker at the clinical laboratory of the Shanghai Towako Hospital on April 11. [Photo by Wang Zhenghua/chinadaily.com.cn]

The transparent policies and friendly business environment in the China (Shanghai) Pilot Free Trade Zone have given the Towako Group confidence in its investments in the city, said Fan Yu, the CEO of Shanghai Towako Hospital.

The 17th branch of the Japan-headquartered medical group, the Shanghai Towako Hospital began operations in August 2016 and is the only foreign-funded institution that specializes in assisted reproduction and gynecology in the FTZ.

"The policies here are very transparent, free from the 'hidden rules' or invisible barriers as some people assume. The negative list makes prohibitions clear, so I feel we can do something here in Shanghai," Fan said.

The hospital, which has clients from all over China and Southeast Asia, has since its inception helped people with reproduction problems conceive more than 500 babies.

Fan added that Japanese companies are gradually shifting their investments from manufacturing to service sectors, and that investors are confident that Japanese brands can become top players in China.