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Invest Shanghai
As 2025 draws to a close, Shanghai continues to attract multinational investment amid policy efforts to upgrade regional headquarters and high-value operations.
One of the policy developments shaping the investment environment was a new five-year framework introduced by the city government, effective from March 1, 2025, through February 2030, which encourages multinational companies to consolidate functions such as research and development (R&D), treasury management and investment decision-making in Shanghai.
Against this backdrop, this story reviews foreign investment highlights in Shanghai over the past year, reflecting shifts in corporate strategy, sector focus and market confidence, based on reported investment milestones and public information.
The Louis
French luxury house Louis Vuitton on June 25 unveiled the world's first "The Louis," a cruise ship-shaped complex combining exhibition, dining and retail in downtown Jing'an District. Located at HKRI Taikoo Hui, the project sits in a commercial area that sees about 100,000 visitors a day, around one-fifth of total foot traffic along Nanjing Road W. Consumption in the surrounding area has exceeded 2 billion yuan (US$285 million), up 59.3 percent year on year.
Shanghai Megafactory
US carmaker Tesla began production at its Shanghai Megafactory on February 11. On December 8, the plant produced its four millionth vehicle, underscoring its role as Tesla's largest global production hub. It now accounts for about half of the American electric vehicle giant's worldwide capacity.
First overseas Lexus EV plant
Japan carmaker Toyota's Lexus brand on June 27 began construction of its first electric vehicle manufacturing plant outside Japan, located in suburban Jinshan District. It is expected to begin production in 2027. With a total investment of 14.6 billion yuan, it reflects broader localization trends and Shanghai's appeal for major EV makers.
Legoland Shanghai
Legoland Shanghai Resort opened on July 5 in Jinshan, becoming the first Legoland in China and the largest globally. The park features eight themed areas, including the world's first Monkie Kid land. It recently received the 32nd Thea Award for Outstanding Achievement and set a global record as the fastest Legoland park to reach one million visitors.
New Roche biopharma base
Roche in October announced a 2.04-billion-yuan investment to build a new biopharmaceutical manufacturing facility in Pudong's Zhangjiang area. Covering about 35,300 square meters, it will produce Vabysmo, a bispecific antibody used to treat eye diseases. The project highlights China's growing role as a strategic base for global pharmaceutical manufacturing and innovation.
BASF plant expansion
BASF said in April that it will invest 500 million yuan to expand its Cellasto plant in Pudong, lifting capacity by nearly 70 percent in 2027. The expansion will increase output of noise, vibration and harshness components and reaffirms the German group's continuous commitment to the Chinese market.
Maersk flagship facility
AP Moller-Maersk on November 20 opened its flagship logistics center in the Lingang Special Area, with an investment of more than 1 billion yuan. The facility operates under policies that streamline customs clearance and support logistics efficiency, reinforcing Shanghai's role as a key hub for global trade and shipping.
Largest overseas Porsche R&D site
Porsche opened a 10,000-square-meter integrated R&D center in the Hongqiao International Central Business District on November 5, expanding its localization efforts in China. The facility brings together R&D, procurement and quality functions and is the carmaker's largest R&D site outside Germany, reflecting a broader push by global automakers to strengthen local innovation as China advances in digital and connected-vehicle technologies.
Audi smart factory
SAIC Audi opened the Audi Intelligent Manufacturing Base in suburban Jiading District on August 25, an investment of more than 3.5 billion yuan. The facility produces Audi E5 Sportback, a model developed specifically for the Chinese market. It also features full automation of key processes with end-to-end data traceability across stamping, body, paint and final assembly, representing the latest achievement of smart manufacturing in the city.
Expanded access for global finance
BNP Paribas opened a wholly owned securities firm in Pudong's Lujiazui area, becoming the fourth fully foreign-owned securities company in China. On the same day, three reinsurance institutions – the Shanghai International Reinsurance Exchange and the Shanghai operations centers of AXA International Reinsurance and Hannover Re – also launched, underscoring Shanghai's push to open its financial market and attract global institutions.