Shanghai banks on big-ticket foreign direct investments to achieve ambitious growth and employment targets

Mayor Gong Zheng says FDI projects would continue to be a major growth driver after inflows reach a record US$20.2 billion last year

Shanghai has set a goal to achieve 6 per cent GDP growth and create 500,000 new jobs this year

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Shanghai has set itself an ambitious GDP target of 6 per cent, after clocking 1.7 per cent growth last year. Photo: EPA-EFE

Published: 8:30am, 28 Jan 2021Updated: 8:30am, 28 Jan 2021

Shanghai, the mainland’s commercial and financial capital, riding high on the success of Tesla’s Gigafactory 3, is on the lookout for more foreign direct investment (FDI) projects to achieve ambitious growth and employment targets the city has set this year.

Mayor Gong Zheng told a press conference on Wednesday that Shanghai remained the top choice for global investors looking to secure a foothold in the mainland, and FDI projects would continue to be a major growth driver for the country’s gateway city.

His remarks came as FDI into Shanghai rose 6.2 per cent year on year to a record US$20.2 billion last year despite the disruption caused by the pandemic.

Shanghai has set a goal to achieve 6 per cent gross domestic product growth and create 500,000 new jobs this year.

Shanghai Mayor Gong Zheng remains the top choice for global investors looking to secure a foothold in the mainland. Photo: Weibo

“As a barometer for the Chinese economy, Shanghai will unswervingly widen the access for foreign investment,” Gong said after the close of the annual session of the local legislative body. “Efforts will be made to further open up the telecoms, internet, cloud, health care and cultural sectors. We warmly welcome multinational companies to bring their hi-tech, world-class projects to Shanghai so as to tap the opportunities in the market and pursue new growth here.”

Shanghai was among the slowest-growing provincial-level economies last year, with GDP expanding 1.7 per cent, compared to the national figure of 2.3 per cent. The mainland’s most developed metropolis had set a 6 per cent GDP target for the economy at the start of 2020.