Shanghai
r&D – Shanghai’S contemporary There is a vibrant self-confidence permeating there are opportunities in many different areas.
inDuStrial focuS the city. It clearly feels at ease with itself and with In my area, insurance, although growing fast in
Recognising a growing domestic demand for its large community of foreign residents who, China, it is not easy always for foreign insurers
quality, innovative products Shanghai is also today, are a significant part of its fabric. ‘People to develop rapidly because the competition
becoming a leading regional centre for R&D. Activity want to come to Shanghai because it is Shanghai. from local companies is fierce. Therefore
is centred on Pudong’s Zhangjiang Technology Park, It feels good living here and so very different to proper research, a thorough understanding of
whose clients include General Electric. ‘China is a London. Its diverse culture creates a feeling unlike the market, and good local relationships are
significant research and development base and a other parts of China – but it is China,’ says Kevin important aspects in determining whether
fundamental foothold for GE’s development,’ says Chan, originally from Hong Kong and today part an investment here will be successful. Timing
Chen Xiangli, president of GE’s China Technology of Shanghai’s financial scene. then becomes critical: what is the lead time to
Centre. The Centre’s public relations chief inspector, ‘Shanghai, while different to the interior, obtaining a licence, for example, and what might
Wang Xiaozhong, emphasises that ‘GE has been gives a sense of where China is going. It comes the opportunities be at the end of that time?
following the American and European markets to symbolise much of what China has achieved The climate is a good one for doing business and,
over the past century – but China will turn into a by her own efforts. It symbolises self-confidence compared to most of the rest of the world right
priority in future.’ Reflecting the talent produced by and a future surging ahead,’ adds Tim Mathieson. now, Shanghai is the place to be!’
Shanghai’s universities, only a handful of its 1,400 Challenging, yes, and Dan Margo thinks a longer- In China, some things happen quickly while
staff are expats. term strategy is needed: ‘Shanghai is international, others can seem slow. The physical transformation
Dow Chemicals also created a vast Asia- with lots always going on. It is not easy and it will of Shanghai over the past decade has been very
Pacific R&D hub there. ‘With its proximity to not happen overnight. Patience is very important rapid, and Expo will continue that trend. But
our customers, an efficient infrastructure and and a three year strategy is a minimum.’ China is also a cautious country and reforms,
a visionary leadership, we find Zhangjiang a Asked about future prospects in Shanghai, particularly financial, will be taken step-by-step
great location for our centre in China,’ says Jim Tim Mathieson remarks: ‘In a fast-growing city at to ensure not just Shanghai, but the nation itself
McIlvenny, president of Dow Greater China. the heart of the fastest-growing major economy, continues with its well-established growth. n
Shanghai remains a centre for heavy industry;
today located mostly out in the suburbs, including
Shop till you Drop
the giant Shanghai Baogang Steel Group. Sinopec
Shanghai Petrochemical Company Limited (SPC),
Bustling Shanghai is a shopper’s paradise with in October 2008 (below) – its first branch
located in Jinshan District, is one of China’s largest
its young, fashionable consumers seemingly in mainland China and, at 40,000 sq feet,
integrated petrochemical companies. Shanghai is
‘shopping till they drop’, in ever-classier its largest in Asia. The store had teething
also a centre for shipbuilding, although older yards
locations such as Super Brand Mall in Pudong’s problems and in February 2009 executive
are being relocated from sites on the Huangpu
Lujiazui financial area. Developed by Thailand’s chairman Sir Stuart Rose acknowledged to
River to coastal locations such as Chongming.
Charoen Pokphand Group, its 13-floor, 250,000 The Financial Times that M&S had initially
The city is a major centre of automobile
square-meter floor space welcomes around misunderstood the local market by modelling
production, with several western names including
300,000 customers every Saturday and Sunday. Shanghai on its Hong Kong stores. The
Volkswagen and GM having production facilities
Running from People’s Square down store experienced supply chain problems,
– usually tied in with local companies. The UK’s
to The Bund, the pedestrianised Nanjing particularly in the food hall, and shortages
distinctive ‘London taxi’ is today manufactured in
Road is one of the world’s busiest shopping of the smaller-sized clothes demanded by
Shanghai in cooperation with Geeley.
streets and home to several of China’s oldest Chinese consumers. With the initial Shanghai
Other industrial sectors attractive to foreign
department stores. Within former Wings problems behind it, M&S is committed to
investment have included energy technology,
emporium UK’s Marks and Spencer opened, opening more stores in China.
infrastructure, environment, life sciences and
advanced engineering.

growth of international
facilitieS
The growing international community and an
expanding Chinese middle class have generated
a boom in private education. The school names
reflect the diversity of the expat population –
Shanghai American School, Yew Chung Shanghai
International School, Shanghai Singapore
International School, French and German School
Euro-Campus, Dulwich College, and many more.
This variety of schooling and the extensive range of
quality accommodation means it is relatively easy
M&S
to attract expat families to Shanghai.
24 pathfinder buSineSS l JUNE/JULY 2009
PBS12 pp20-25 Shanghai.indd 28 5/6/09 15:27:17
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