Shanghai posted robust foreign investment growth in 2026, registering 1,538 newly established foreign-funded firms and actual foreign direct investment of $4.9 billion in the first quarter. Global investors' confidence reflects the city's efforts to improve its business environment.

Since launching its first action plan to build a world-class business environment in 2018, Shanghai has been continuously optimizing its business climate. According to the World Bank's latest business environment survey data, by the end of 2025, Shanghai had 22 of 59 assessment points at the global best-practice level, more than New York, Singapore, Hong Kong, Seoul, and London.

To sustain this progress, Shanghai unveiled its latest action plan to build a world-class business environment on Jan 4, covering 26 measures across four categories: government services, fair market competition, industrial ecosystem development, and social co-governance.

1. One-stop government policy platform

Launched on June 29, Shanghai's unified policy publication platform integrates nearly 10,000 valid policy documents issued by 770 policy-making bodies across the city.

In addition, the "Suishendui" online platform for accessing and applying for business support policies has been operating for over a year. Its flagship "Zero-Application Policy Access" function allows eligible firms to receive benefits without submitting applications.

As of early 2026, a total of 826 policy programs at Shanghai's municipal and district levels had adopted the "Zero-Application Policy Access" approach, providing services to enterprises more than 7.06 million times.

2. Inspection code eases burdens on enterprises

Starting Jan 1, 2025, Shanghai took the lead nationwide in fully implementing the Inspection Code system for government inspections of businesses.

When conducting inspections, law enforcement officers are required to present the Inspection Code alongside their law enforcement credentials. Enterprises can scan the code via the Suishenban app to verify the inspection basis and enforcement information in real time.

As a result, in 2025, administrative inspections targeting enterprises fell by more than 40 percent year-on-year, while enterprises' approval rating for administrative inspections exceeded 99.8 percent.

The city's latest action plan to improve its business environment calls for a "credit plus risk" graded regulatory system, minimizing on-site inspections for businesses with good credit and matters posing low risk.

Shanghai has also shown firm resolve in its efforts to maintain market order.

In January, a Shanghai court sentenced a man to five years in prison for contract fraud in one of China's first criminal cases involving a so-called "professional business closure agent". He had taken over four struggling fitness centers and collected more than 750,000 yuan in membership fees before absconding.

To curb profit-driven professional claims and reports, eight municipal authorities issued joint guidelines in 2025. In Fengxian district, which was among the first to explore such measures, daily profit-driven complaints dropped by roughly two-thirds.

3. Fostering a sound industrial ecosystem

The latest action plan places industrial ecosystem development on an equal footing with government services, market competition, and social co-governance.

Enterprises are increasingly looking beyond traditional tax breaks and land incentives to factors such as complete supply chains, rich talent pools, and commercial application opportunities. To upgrade industrial space, Shanghai launched a one-stop commercial building renewal platform in October 2025. According to preliminary figures, 46 commercial building renewal projects covering more than 1.1 million square meters have been completed citywide.

A landmark case is the renovated "Zhongganghui · Huangpu". Formerly a hotel, it now houses medical and life-science institutions and companies, and its average office rents are 15 percent higher than those of comparable nearby buildings.

4. Handbook fills SMEs' policy access gaps

Over 99 percent of Shanghai's market entities are micro, small, and medium-sized enterprises or self-employed operators, most of which don't have dedicated staff to handle government-related affairs. Shanghai released a practical handbook on May 18, simplifying the full corporate lifecycle into 30 practical scenarios, with QR codes linking directly to step-by-step procedural guides.

The handbook is intended for distribution to frontline staff in subdistricts and towns, helping them provide businesses with more accessible policy guidance.

Beyond foreign investment figures and global rankings, the core of Shanghai's reforms lies in bringing tangible benefits to businesses of all sizes. The city's business environment is steadily evolving from a focus on convenient government services toward a more business-friendly ecosystem.

Source: Jiefang Daily