Multinational companies' expansion plans match Shanghai's 'five centers' goal

Multinational corporations continue to expand in Shanghai to strengthen ties with China, a market with millions of customers.

Some of their latest moves include a life science center by Merck, MSC’s expansion in shipyards and ports, and localized applications demonstrated by ZEISS in its headquarters in Pudong New Area for local archaeologists, doctors, and one of the top domestic smartphone brands.

They are all consistent with Shanghai’s plan to promote the development of “five centers.” According to an earlier released plan, by 2025, Shanghai should be a global center for economy, finance, trade, shipping and science and technology innovation at a new level.

Multinational corporations and investment become the foundation of the city’s design and aspiration to strengthen its capacity and core competitiveness.

During a recent inspection visit to Shanghai, Chinese President Xi Jinping emphasized the importance of accelerating Shanghai’s transformation into a modern, socialist, and international metropolis by focusing on the development of the “five centers.”

Merck

Merck Group, a globally renowned enterprise in the fields of life science, healthcare, and electronics, is one of the many that align with city’s urban development goals and industrial positioning.

The company just completed the second phase of its Biologics Testing Center in Shanghai in November, with a total investment of 29 million euros (US$31.7 million), adding 1,500 square meters to the facility that opened last year.

It is Merck’s first domestic biosafety laboratory, allowing clients to access a wide variety of testing services for cell line characterization and lot release, from pre-clinical development to commercialization.

“The opening of the facility deepens our partnership with our Chinese clients, who are at the forefront of shaping modern medicine,” said Dirk Lange, head of Life Science Services at Merck. “The center in Shanghai now provides critical local services backed by our more than 75 years of global experience in the testing market.”

The first stage of investment includes testing services for viral clearance studies, which is an important step in drug development. The second phase of the Shanghai facility expands cell line characterization capabilities to help biopharma companies confirm the safety, purity, and authenticity of their cell banks.

“China is a strategic priority for us, and Shanghai is a hub of innovation and growth. We are excited to be part of this community. I look forward to seeing how we deliver the highest quality testing services and regulatory expertise for clients in China, for China, and with China,” said Lange.

ZEISS

Localized applications and innovations are on display at ZEISS headquarters in Jinqiao, Pudong. They include sophisticated optical equipment employed in recent archeology activities at the Jinsha relic site in Sichuan Province, medical gadgets for eye care, and camera lenses designed for Vivo, which has more than 500 million users worldwide.

ZEISS and Vivo announced an improved cooperation for mobile imaging research and innovation at the China International Import Expo in November. It claims to improve smartphone photography features such as chromatic aberration reduction and color correction, bringing it closer to the level of a professional camera. Since establishing a collaborative lab in 2020, the two companies have showcased their discoveries multiple times at the annual CIIE.

This year marks ZEISS’ sixth consecutive appearance at the CIIE, delivering approximately 70 new solutions spanning the medical, consumer market, industrial, and semiconductor manufacturing industries.

“China is a hub for future industrial mega-trends,” said Maximilian Foerst, president and CEO of ZEISS China and a long-time resident of Shanghai. “We will continue to engage with China, explore local manufacturing, local innovation, and local business models, and seize the opportunity for sustainable and high-quality development of high-end industries together with our partners and local technology innovators.”

Shanghai’s innovative companies have risen fast in recent years and have had a substantial impact on the sector. The added value of the city’s important emerging industries reached 1.06 trillion yuan (US$149.3 billion) in 2022, up 8.6 percent from the previous year and accounting for 23.8 percent of the city’s GDP. The proportion of R&D expenditure to GDP was approximately 4.44 percent.

MSC

MSC, a Swiss-based shipping company with over 25 years’ history in Shanghai and China, intends to invest further in the region.

MSC made its Chinese business debut in 1996 and opened its first office in Shanghai in 1998. For more than two decades, it has been extensively involved in the transformation and advancement of China’s economy and maritime industries.

MSC operates 27 offices in the Chinese mainland, employing 1,300 people. It calls at roughly 20 Chinese ports, running 40 or so mainline services and 10 intra-Asian routes, connecting Chinese businesses with the rest of the world. The Shanghai government gave MSC the Regional Headquarters Certificate for Multinational Corporations in 2023.

In Tianjin, Qingdao, Shanghai, Ningbo, Xiamen, and Shenzhen, MSC has invested in completely owned or joint venture empty container yards. MSC inked a collaboration agreement with Shanghai Port Group (SIPG) in 2022 for a new terminal yard on the north side of Yangshan Phase III Terminal, which will help shippers improve the process of empty container recycling.

Its Chinese investments include shipbuilding, containerized freight, port operations, and other fields. MSC received more than 10 Ultra Large Container Vessels (ULCVs) built by Chinese shipbuilders this year, each capable of carrying more than 24,000 TEUs (twenty-foot equivalent unit).

The company sees China as one of its most important global markets, and it is confident in the future and potential of both China and Shanghai.

“Shanghai has a sound business environment with great advantages in marketization, rule of law, and internationalization, allowing all types of enterprises, including foreign-funded organizations, to flourish,” said Jonathan Zhu, managing director of MSC China.

MSC aligns with Shanghai’s “five centers” development plans because shipping is one of them. The company will invest in new areas and work with more partners to improve the shipping industry and help Shanghai become an international shipping center.

MSC has also achieved sustainable results in China, supporting the national carbon neutrality policy. The company, which aims for net-zero carbon emissions by 2050, has worked with numerous Chinese ports and quality firms to create a green, low-carbon supply chain.