Foreign investment in FTZ picks up

Foreign companies are increasing their investment in Shanghai's pilot free trade zone after showing rising interest in it, senior officials said yesterday, adding that foreign investment has played a key role in the city's economy.

In the first half of this year, 1,016 foreign-funded projects worth US$5.4 billion were launched in the FTZ.

The number accounted for nearly half of all foreign-funded projects in the city and nearly 20 percent of projects launched in the zone, according to the Shanghai Commission of Commerce.

"It takes time for foreign companies to analyze the feasibility of investment in the zone," said Zhu Min, vice chairman of the China (Shanghai) Pilot Free Trade Zone Administration. "Now many have completed their observation period and started to take action."

Zhu said the number of foreign companies setting up branches in the zone has been rising quickly in recent months, especially after the zone revoked more barriers to overseas investment in its newest negative list released in June.

"With further policy innovation, we expect more foreign companies will turn their eyes toward the zone," Zhu said.

Shang Yuying, chairwoman of the Shanghai Commission of Commerce, said the city has become an increasingly attractive location for foreign investment.

Yesterday, the commission unveiled the top-100 foreign companies in the city that produced the biggest trade volume, sales and taxes. Shanghai Volkswagen, Shanghai General Motors and Apple Computer Trading (Shanghai) Co were among the winners.

The top-100 foreign companies "generate more than half of trade volume, sales and taxes by foreign companies here," Shang said.

"Foreign investment has played a key role in Shanghai's economy," she said. "Shanghai will continue to open the market for foreign investors while improving the investment environment for all."