Xuhui district of Shanghai extends deals with Japanese partners

The government of Xuhui district in Shanghai held an overseas investment promotion seminar in Tokyo on Monday, with the aim of fully advancing international cooperation and development between China and Japan in key areas.

The district government signed a memorandum of cooperation with institutions including Sumitomo Mitsui Banking Corporation (China) Ltd, Mizuho Bank (China) Ltd and Itochu Corporation at the seminar.

Currently, more than 300 Japanese companies have established themselves in Xuhui district, a core urban district of Shanghai, and they continue to grow and expand.

Xuhui district mayor, Zhong Xiaoyong, welcomed Japanese companies and institutions to invest and develop in Xuhui, thereby promoting further high-quality collaboration.

"At present, Xuhui district is seizing development opportunities on new tracks, with four major strategic industries — digital economy, life and health, culture and creativity, and modern finance. Simultaneously, the district is actively pursuing the metaverse, green and low-carbon initiatives, and intelligent terminals to foster the 'second curve' of high-quality development," Zhong said.

To achieve this goal, the district government is committed to creating a top-notch business environment.

"Serving as a national-level demonstration area in intellectual property protection, government services and digital transformation, Xuhui district is comprehensively optimizing the business environment and continually streamlining the approval process for high-frequency business-related matters, with 98 percent of such matters being fully processable online," Zhong said.

"We are also implementing a more internationalized talent policy, leveraging Xuhui's advantages in education, healthcare and culture to better meet the needs of talent settlement, aiming to foster a nurturing environment," he added.

The government of Xuhui district has always attached great importance to the enhancement of the local business environment. It provides top-notch facilities and one-stop administrative services, including immigration services, to businesses within the district, said Koin Toda, chief representative in China at Tsumura & Co, which engages in the manufacturing and sales of pharmaceutical products.

"We truly appreciate the advanced service philosophy of the Xuhui district government, which is characterized by 'being proactive without intrusion and responding promptly when needed'. The favorable business environment and supportive policies in Xuhui district have fully unleashed the creative vitality of both foreign-funded and private enterprises," Toda said.

Last month, the State Council, China's Cabinet, issued opinions on further optimizing the foreign investment environment and intensifying efforts to attract foreign investment. These opinions introduce new requirements for enhancing the quality of foreign investment utilization, ensuring national treatment for foreign-invested enterprises, strengthening the protection of foreign investment, and improving the convenience of foreign business operations.

"These measures highlight the Chinese government's commitment to fully and accurately implementing the new development philosophy, promoting high-quality development, creating a market-oriented, legal-based and internationalized business environment, and further advancing China's high-level opening-up," said Song Yaoming, minister of economy and commerce at the Chinese embassy in Japan.

Last year, the bilateral trade volume between China and Japan reached $357.4 billion. Up to now, the cumulative direct investment from Japanese companies into China has amounted to $130.5 billion.

"The close economic and trade cooperation between China and Japan has not only made significant contributions to the economic development of both countries but also played a crucial role in promoting economic recovery in Asia and even globally," Song said.

He called for Japanese entrepreneurs to collaborate closely with local entrepreneurs in Shanghai and work together to share in the achievements of China's economic development.

"In the past, Japanese investment in China was predominantly focused on traditional industries like manufacturing, resulting in relatively lower value-added contributions. Today, there is an urgent need for Japanese companies to transform and upgrade their investments in China, by increasing their involvement in high-end sectors such as artificial intelligence, new energy vehicles and autonomous driving," said Satoshi Ito, director of business affairs of the Japan-China Economic Association.

"Japanese enterprises are also eager to engage in exchanges and collaborations with Chinese companies in these areas. We hope that in the future, visa issuance and the freedom of movement between the two countries can return to the levels before the COVID-19 pandemic. This would be instrumental in promoting Japanese investment in China's high-end industries," Ito said.