Shanghai a key city for foreign enterprises

The 38th Meeting of the International Business Leaders' Advisory Council for the Mayor of Shanghai was held on Oct 10-11. It brought together more than 40 business leaders from 14 countries to discuss service sector innovation and explore new opportunities for cooperation.

The 38th Meeting of the International Business Leaders' Advisory Council for the Mayor of Shanghai is held on Oct 10-11.

During the annual meeting, international entrepreneurs shared many valuable and profound insights and put forward numerous forward-looking policy recommendations. Those focused on four topics: consumption, models, integration and scenarios. Shanghai government officials also shared the latest developments and future plans for the city.

Ahead of the meeting, international business leaders visited Fuxing Island in Yangpu district to learn about Shanghai's progress in applying artificial intelligence to service-sector development and urban upgrade.

The next IBLAC meeting is scheduled for Oct 10, 2027, and will focus on innovation and open cooperation between Shanghai and global enterprises in the intelligent era.

According to global businesses, Shanghai — at the frontier of China's reform and innovation and home to more than 1,000 regional headquarters of foreign businesses — has a growing role in their China journey, serving not only as an important market for selling products but as a source of creativity and innovation.

East meets West

Consulting firm Bain & Company proposed that Shanghai, whose service sector contributed 79 percent of its annual GDP in 2025, enhance services for residents and visitors.

According to Bruno Lannes, a senior partner at Bain, the service sector is extremely broad and can be subdivided into sectors including services to corporations, government and individuals. Bain chose to focus on services to individuals because "ultimately, individuals are the ones driving consumption in a city".

Bruno Lannes, a senior partner at Bain, shares his opinions about Shanghai's development during the visit to Fuxing Island on Oct 10.

"In order for the city to continue to be attractive to businesses, we want the individuals working in these companies to be very happy with the life that they have in Shanghai," said Lannes.

For residents, Lannes said greater emphasis could be placed on healthcare and eldercare, structured in three layers: basic insurance provided by the government and free for everybody; upgraded services partially paid by the individual and/or their employer with the government also contributing; and premium services fully paid by the individuals themselves.

For visitors, Lannes highlighted Shanghai's infrastructure, including its convention and exhibition center, as well as its sporting events. He called for greater emphasis on "the soft side of why people are attracted to a city".

"When people dream of Paris, they think about culture; when they dream of London, they think of a creative city with lots of live performance art; New York means ambition and energy. What's the equivalent for Shanghai? What is the brand identity of Shanghai that will attract more people to come and stay longer, beyond just business reasons? For example, 'the high-tech city where East meets West' ," he said.

Lannes, who has observed the development of China and Shanghai for more than 20 years, said Shanghai will continue to be an ideal destination for service businesses. Shanghai's efforts to build the "five centers" — an international economic center, financial center, trade center, shipping center and science and technology innovation center — are to create tremendous opportunities.

"My suggestion for international service companies is to play to your strengths and follow the government's strategy to see where the tailwinds are," said Lannes.

Lannes also pointed out that Shanghai's offerings to multinationals have extended far beyond business opportunities. As a gateway for foreign companies beginning their exploration of China, the city's uniqueness also lies in its culture, where East meets West. Its distinctiveness comes from the way it combines Chinese regional roots, foreign influence, commercial modernity and rapid social change.

"If you combine high-rises with historical architecture, suddenly you have something very unique that nobody else has," said Lannes. "It's both a cosmopolitan city that has always been welcoming to foreigners and also an Asian city, a Chinese city. It's where I think the two worlds, or the two cultures, reemerge and grow from each other," Lannes said.

Bain, which first participated in IBLAC in 2007, will strengthen its commitment to China and Shanghai and continue serving as a bridge to connect global companies with Shanghai, according to Lannes.

"Shanghai is a very important component of any company's strategy in the world. We feel that there are lots of opportunities for us to grow our business with either local companies or multinational companies," said Lannes. "Invest in Shanghai and share the future. I hope many companies will come to Shanghai and experience the business and living environment here."

Launchpad

Global mining company Vale presented a paper examining Shanghai's distinctive role as a launchpad for Chinese enterprises expanding into Latin America at the 2026 IBLAC.

According to Tracy Xie, CEO of Vale China, Latin America is rapidly evolving from a traditional overseas market for Chinese enterprises into an important strategic cooperation partner, offering significant opportunities in green transition, industry chain collaboration and Global South cooperation.

Shanghai, which is advancing the development of its "five centers", has brought together capital, goods, technology, business services and institutional innovation under one roof, setting up a foundation to support the global expansion of businesses. Meanwhile, its efforts in promoting institutional innovation in cross-border investment — including the development of the free trade zone, offshore trade, and cross-border settlement — along with its commitment to strengthening technological innovation in fields such as new energy vehicles, AI, biomedicine, advanced manufacturing and green low-carbon industries, have laid the groundwork for companies' success.

"What is key to building Shanghai into a launchpad does not lie simply in adding more activities or service windows. Rather, it lies in developing functions by aligning national strategies with Shanghai's existing institutional strengths, leveraging these functions to provide systematic services for enterprises, ultimately translating such services into implementable projects, and accumulating successful experience to form a virtuous cycle.

"By establishing an institutionalized, professional and sustainable service mechanism, Shanghai can become a key long-term hub for Chinese enterprises expanding into Latin America," said Xie.

Xie said that Vale, which has been a long-term partner of China, stands ready to serve as a bridge connecting Chinese business with Brazil, Latin America and other international markets.

"We are willing to share our experience in supply chain management, low-carbon transition, community engagement and local operations," said Xie.

Vale, which established itself in Shanghai in 1994, said the city "holds a special place in Vale's history in China". Shanghai is home to Vale's Chinese headquarters and procurement team. It has also established close partnerships with many local companies including shipbuilders, shipping service providers and steelmakers.

"Shanghai is not only an important base for Vale's business in China, but also a key hub connecting customers, suppliers, shipping partners, financial institutions and other value-chain stakeholders," said Xie.

For Chinese enterprises exploring opportunities in Latin American markets, Shanghai acts as a critical launchpad. And for global companies seeking to tap into the Chinese market, Shanghai stands as an ideal "first stop", according to Xie.

"For international companies coming to China, Shanghai serves not only as an important gateway to the Chinese market, but also as an integrated platform for establishing operations, connecting with industry chains and fostering innovation," said Xie.

With its extensive market reach, Shanghai helps international companies connect with customers, suppliers, manufacturers, research institutions and financial resources across the Yangtze River Delta and throughout China. At the same time, the city hosts a high concentration of multinational regional headquarters, professional service providers and international talent, enabling companies to access support in areas ranging from market research, business operations and legal and tax services to cross-border finance, logistics and talent development.

Vale sponsors Brazilian Day 2026 in Shanghai.

"Looking ahead, we hope to further expand our network of partners in Shanghai and China, bringing even more Chinese elements into Vale's global value chain," Xie added.

Bright future

Sportswear brand Adidas, which has been involved in IBLAC since 2024, proposed building Shanghai into a globally leading "emotional vitality city", with sport playing a central role.

"Sport turns participation into emotion, emotion into connection, and connection into urban vitality. The opportunity for Shanghai is to make the energy of a major sporting event part of everyday city life — and to build a city where people feel part of the community," said Adrian Siu, managing director of Adidas China.

"The 2028 Olympic Q-Series could serve as a catalyst to extend the impact of a major sporting event beyond the competition itself — into year-round sports participation, community engagement, and urban life," he added.

According to Siu, over the past nearly 30 years in China, especially in Shanghai, sports consumption has evolved from products to participation, experiences, communities and identity, creating new opportunities for businesses to expand operations.

"For Adidas, the evolution of our business model in China is about more than selling products. It means rethinking how we develop products, how consumers experience our brand and how we reach new markets. This is captured in the idea of 'Shanghai Design, China Manufacture, Global Impact'," said Siu.

The Shanghai Creative Center of Adidas has been in operation for 20 years and employs around 160 designers and other creative professionals. The team develops more than 4,000 products annually, many of which are exclusive to China, Siu said.

"More than 65 percent of the products we sell in China are designed locally, and over 95 percent are made in China," added Siu.

Adidas, which has established a value chain in Shanghai that includes the China headquarters and innovation center, will continue to use Shanghai as a pivot to expand its China operations.

"Shanghai's sports consumption market is increasingly intertwined with socializing, urban exploration and leisure activities. Meanwhile, the city's tourism industry is also thriving, with a notable increase in inbound visits, further bolstered by international sporting events such as the 2028 Olympic Q-Series," said Siu.

Adidas will also explore growth in emerging sports. Through collaborations with Les Mills and ALLTRA GAMES, it aims to introduce the ATHX Games in Shanghai in 2027.

In 2025, Adidas launched DANCE UP!, a university dance challenge, in Shanghai. This year, the event has grown into a nationwide initiative involving 42 universities across China.

Adidas will also strengthen sports technology development in Shanghai to support the city's transformation into an international consumption center and an international science and technology innovation center.

Siu said the city has hosted major Adidas global technology launches in both 2025 and 2026, including the ADIZERO 0 series and the company's first global CLIMACOOL event. Adidas has also established collaborations with leading universities in Shanghai, including Fudan University, to promote academic research with practical applications.

"We believe sports technology can help bridge the two. Innovation creates new products and experiences, while consumer needs provide direction for further innovation," said Siu.

In the fourth quarter, Adidas China, which will celebrate its 30th anniversary in 2027, will relocate its China headquarters to Xuhui West Bund.

On June 13-14, during the opening weekend of the 2026 FIFA World Cup, Adidas hosts an event at Shanghai's West Bund riverside.

"With a gross floor area of more than 32,000 square meters, the new headquarters will serve as a hub for management, creativity and innovation, bringing our teams closer together and strengthening collaboration with local partners," said Siu. "Shanghai is already home to our China headquarters, Shanghai Creative Center, and China Digital Center. Together, these capabilities connect consumer insights, product creation and digital innovation, allowing us to respond more closely to the needs of Chinese consumers while bringing ideas developed in China to a wider global audience."