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Foreign firms expand R&D, talent development and supply chain in the city

BEIJING, Dec. 15, 2025 /PRNewswire/ -- A news report from chinadaily.com.cn:

Shanghai, serving as a vital gateway for foreign businesses entering the Chinese market, has emerged as a key hub for the regional headquarters of international companies.

In 2025, a total of 44 foreign-invested headquarters received a recognition certificate from the Shanghai government, bringing the total number of foreign-invested regional headquarters in the city to 1,060.

Shanghai has become one of the cities with the highest number of regional headquarters for multinational companies in China.

Shanghai is a preferred choice for companies for several reasons, including its vast market size, comprehensive industry chains, open and inclusive culture, proximity to the economically vital Yangtze River Delta and its platforms for observing and engaging with the latest research and development activities.

Meanwhile, strong policy support from the Shanghai government is also a significant advantage.

In February, the government issued a plan to encourage foreign companies to upgrade their headquarters in the city by integrating functions such as research and innovation, financial management, investment decision-making, procurement and distribution, supply chain management and shared services under one roof. A tiered system was established to nurture various types of headquarters, including China regional headquarters, Asia-Pacific regional headquarters, and global division headquarters. Support will be tailored to the different development stages and functions of these headquarters.

Driving innovation

Sonova, which has been operating in China for more than 20 years, considers the country one of the most strategic markets in its global landscape. In 2022, it established its China headquarters in Shanghai, a location that supports business decision-making. This year, Sonova received a recognition certificate for its China headquarters from the Shanghai government, marking a new milestone in its journey in China.

"Shanghai, the core of Sonova in China, not only provides resources such as talent but also connects Sonova with the local market," said Fang Fang, general manager of Sonova China. "The establishment of the China headquarters has accelerated local innovation and product launches, achieving high efficiency in resource utilization."

Fang said that Shanghai offers a premium business environment, a comprehensive industry chain and a rich talent pool, making it one of the most valued cities for regional headquarters and R&D centers for foreign companies.

"Shanghai boasts a large number of high-end medical professionals and advanced medical technologies, making it the most active regional medical center in China. This provides strong support for corporate innovation."

In addition to serving as Sonova's China headquarters, Shanghai is home to the company's innovation center, which focuses on developing products to meet local demand. The center has introduced solutions such as the Phonak-branded Chinese speech processor, designed based on the tonal characteristics of the Chinese language and the local listening environment, offering a more natural and comfortable listening experience for people with hearing loss in China.

In recent years, Sonova also strengthened partnerships with local businesses and academic institutes to support the high-quality development of Shanghai's healthcare industry. In September 2024, Sonova signed a memorandum of cooperation with East China Normal University to jointly focus on talent development. Both parties agreed to leverage their strengths to explore R&D opportunities in audiology, promote the creation of accessible educational environments, and enhance professional training and education through industry-academia collaboration. Additionally, they aim to disseminate hearing care knowledge to the general public and raise awareness of hearing health.

So far, Sonova has established a complete local supply chain in China, covering R&D, production, marketing and services. It has also optimized its market layout with the headquarters in Shanghai, production facilities in Suzhou, Jiangsu province, and quick access operations in Boao, Hainan province.

"Sonova is confident in the development of China and Shanghai. We are optimistic about the long-term future of the hearing health industry in the country," said Fang.

An accelerator

Kerry Group, a global leader in tastes and nutrition, has been operating in Shanghai for more than 20 years. It brings in imported dairy products, protein products, probiotics and natural extracts to meet the quality demand of Chinese consumers.

In 2022, Kerry Group established its China headquarters in Xuhui district of Shanghai in response to its rapidly developing business. It received a recognition certificate from the Shanghai government in 2024. So far, it has established an operational network that spans China, including Jiangsu, Hebei and Shandong provinces.

"Openness, innovation and inclusiveness are the defining characteristics of Shanghai and are crucial factors in supporting the development of enterprises," said Jiang Wei, general manager of Kerry China. "The establishment of the regional headquarters helps us to define the organization structure and business model, strengthen client confidence and support our long-term quality development goals."

According to Jiang, during Kerry Group's more than 20-year journey in the city, Shanghai has impressed the company with its premium business environment, extensive talent pool and complete industry supply chains. The characteristics of the city ensure that Kerry Group's imported products can clear customs in the most efficient manner. Additionally, the company can easily find supply chain services ranging from raw materials and production equipment to packaging materials and logistics. Furthermore, it can find the right talent that shares the company's values to support its long-term growth.

"The city acts as an accelerator, helping to shorten the time from product design to mass production and enabling us to respond quickly to clients' demands," said Jiang.

"During its development journey in Shanghai, Kerry Group has profoundly experienced the continuous improvement of the business environment. The company is very confident in the Chinese market, which is fully reflected in continuous investments, business expansion and innovative collaborations."

Since its inception in China 20 years ago, Kerry Group has been strengthening its development foundation in the country. It has successfully established a local chain encompassing R&D, production, technology and marketing. It has acquired three flavor manufacturing plants in China, further solidifying its leading position in the flavored products sector. So far, it has entered a new stage of consistently generating profits in the vast Chinese market.

A foreseeable future

Sherwin-Williams Company, a global leader in the paint and coating industry, opened its first China office in Shanghai in 1930.

In 2019, the company located its Asian headquarters in Jing'an district of Shanghai. The city also boasts one of its four production sites in China.

"The establishment of Sherwin-Williams' Asia-Pacific headquarters in Shanghai stems from our strong emphasis on the Chinese market and deep recognition of Shanghai's strategic position," said Henry Wu, managing director for the APAC region at the Sherwin-Williams Company.

"Shanghai is a core city in Sherwin-Williams' Asian regional layout. It not only boasts a comprehensive industry chain and abundant talent resources but also offers an open and inclusive business environment."

Wu said that the stable and efficient business environment, along with a foreseeable future, encourages the company to deepen its roots and focus on its business. This foundation also fuels Sherwin-Williams' confidence in long-term development.

"From policy support to government services, from industrial ecosystem to talent pool, Shanghai consistently demonstrates strong comprehensive advantages," said Wu. "Leveraging Shanghai's mature manufacturing system and innovative resources, Sherwin-Williams has significantly enhanced its service capabilities and response speed in the Chinese and Asia-Pacific markets."

So far, the Asian headquarters has played a vital role in supporting R&D and accelerating marketing of new products, according to Wu.

Meanwhile, the headquarters also enables the company to enhance collaboration with local enterprises and research institutions to drive coordinated innovation across the upstream and downstream industry chains.

"We have established close cooperative relationships with local enterprises, industry associations and research institutions to jointly promote the development of green coating standards, technological innovation and application implementation," said Wu. "In the future, we will further strengthen open collaboration to drive coordinated development across the industry chain, supporting Shanghai in becoming a global leader in green manufacturing."

Looking ahead, Sherwin-Williams will further strengthen its commitment to China to serve the diverse industrial upgrading needs and contribute to China's high-quality growth, according to the company.

In addition to further expanding its presence in sectors such as industrial wood coatings, packaging coatings, automotive finishes and protective and marine coatings in China, the company will strengthen its commitment to green manufacturing, intelligent coating, functional coatings and solutions with sustainability attributes that comply with international regulations.

"China is Sherwin-Williams' core strategic market in Asia. In the future, we will continue to deepen our regional presence, focusing on product applications in high-growth industries such as new energy vehicles, smart manufacturing, green building and food safety," said Wu.

"To succeed, we must gain deep market insights, provide cutting-edge technology, and collaborate closely with our clients. As an international metropolis, Shanghai offers an open and inclusive business environment, efficient government services, a well-developed industry chain, and a rich talent pool. All of these factors will contribute to our success," added Wu.

Sherwin-Williams participated in the eighth China International Import Expo held from Nov 5 to 10 in Shanghai. This marked the company's first appearance at the professional trade fair.

Wu said that the participation enables Sherwin-Williams to further embrace the Chinese market with its most advanced products and engage in in-depth dialogue with Chinese industry partners, customers and individuals from all walks of life.

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

Shanghai strengthens appeal as HQ hub