Boasting 23 regional headquarters of multinational companies and 76 foreign-funded research and development centers, Shanghai's Songjiang district has emerged as a top destination for international business development.

Further solidifying its position in the global economy, the district was recently selected by UK-based HORSE Powertrain Ltd as the location for its Asia-Pacific headquarters.

A major player in engine and powertrain technology, the company has kicked off plans to establish a regional management headquarters, an R&D center, a global supply chain center, and more in the district, all aimed at fostering innovation and enhancing operational efficiency.

HORSE Powertrain Ltd, formed by Renault Group and Chinese automaker Geely Auto Group, produces powertrains, including low emission internal combustion engines and hybrid engine systems.

It generates annual revenue of about 15 billion euros ($16.5 billion) and maintains operations across more than 130 countries and regions, churning out roughly 5 million powertrains annually.

HORSE Powertrain CEO Matias Giannini noted that half of the company's business is in China and the company plans to use China as a key location for expanding its market presence and international cooperation.

The new headquarters is expected to enhance its role in global commerce, trade and supply chain management, he said.

In addition, the company's global supply chain center in Songjiang is expected to lower procurement costs compared with sourcing from Europe and the United States, thus enhancing supply chain efficiency.

Overall, Songjiang has emerged as a hub for supply chain services, and is now home to nearly 1,000 enterprises providing supply chain services — including Shanghai Z&R Supply Chain Management Co Ltd, Japanese materials-handling equipment company Daifuku Co Ltd and Shenzhen-headquartered SF Express.

Bolstering this development is the consistent support extended by the local government — streamlining services and offering financial policies like the Free Trade Non-resident (FTN) accounts — facilitating expansion endeavors of multinationals like HORSE Powertrain Ltd and Japanese automotive manufacturer Honda Motor Co Ltd.

In 2023, Honda Motor Co Ltd established its Chinese motorcycles business unit headquarters in Songjiang.

At the end of February in the current year, the company unveiled four global motorcycle models in the district and held an official authorization ceremony for 160 Honda DreamWing and Honda Dream stores nationwide.

The move is said to represent the company's commitment to expanding its presence in the Chinese market and providing customers with a diverse range of high-quality motorcycle options.

Taken as a whole, the appeal of Songjiang for foreign investment continues to expand.

This is attributed to a combination of national and regional policies, its key role in Shanghai's innovation landscape and its strategic positioning within the Yangtze River Delta and the Belt and Road Initiative.

In 2024, Songjiang ranked second among all the 16 districts of Shanghai in terms of the total value of its imports and exports.

This year, it has already launched 135 measures aimed at enhancing its business environment, simplifying operations for foreign enterprises and elevating its global standing in terms of competitiveness.

Source: Songjiang district government