Shanghai is reinforcing its status as a magnet for global investors, with foreign-backed projects gaining strong momentum across the city.

On June 27, Toyota Motor Corporation broke ground on its Lexus new energy vehicle project in Jinshan district, marking a significant milestone in the company's growing commitment to Shanghai.

Just days later, on July 5, Legoland Shanghai Resort, the first of its kind in China and the largest in the world, opened and further elevated Shanghai's profile as a cultural and tourism hub.

These landmark projects reflect the confidence international businesses have in Shanghai's favorable business climate and competitive market edge.

Speed and efficiency in action

The Lexus project exemplifies Shanghai's streamlined approach to foreign investment, progressing from announcement to construction in less than five months:

• Feb 5: Project announced
• Feb 18: Company registration completed
• March 17: Full registered capital of 107.1 billion Japanese yen ($732 million) paid
• April 1: Land acquisition finalized
• April 22: Cooperation agreement signed
• June 18: First construction permit obtained
• June 27: Construction began

This new production line will be Toyota's first dedicated to Lexus electric vehicles and batteries in China. Scheduled for completion by August 2026, production is set to begin in 2027, with an initial annual output target of 100,000 vehicles.

Peng Xijun, general manager of Shanghai New Jinshan Industrial Investment and Development Co, the local development partner supporting the Lexus EV project, emphasized the city's detailed and transparent services, which were believed to have played a key role in the project's success.

He recalled how negotiations relied on accurate data, including soil composition measured to two decimal places, demonstrating Shanghai's attention to detail and commitment.

Unlike Toyota's earlier investments, the Lexus project targets a higher localization rate under the model of "developed and produced in China, sold globally", according to officials from the investment promotion office of Jinshan district.

Nestled within the Yangtze River Delta region's vibrant NEV ecosystem, the project is vital for Toyota to reduce costs and maintain global competitiveness.

New cultural and tourism landmark

After four years of thorough planning and construction, Legoland Shanghai Resort opened on July 5, kicking off the summer season of the 36th Shanghai Tourism Festival. The resort is poised to become a premier destination and a new cultural landmark in the city.

Wang Minmin, director of the Jinshan district bureau of culture and tourism, noted Shanghai's appeal to foreign investors throughout the resort's negotiation and development.

He emphasized the city's favorable climate, robust economy, and strategic location within the YRD region as critical factors in choosing Shanghai.

The region's seamless transportation infrastructure also stood out, with high-speed rail linking Shanghai Hongqiao Railway Station to Jinshan North Railway Station near the resort in just 19 minutes.

Legoland Shanghai Resort represents a major investment in China's cultural and tourism sector. By blending Western and Chinese elements, it offers a world-class entertainment experience that is expected to drive consumer spending upgrades, boost development in dining, accommodation and transportation services across Jinshan, and thus enhance the overall regional economy.

Source: Shanghai Observer