Recently, due to the uncertainty brought by the US-China tariff war affecting the two major countries and even the global economy, several multinational company executives in Shanghai stated that the ultra-large-scale market, abundant innovation resources, complete industrial chain, and business environment are driving enterprises to further increase their localization layout and expand investment in Shanghai. For example, the globally renowned chemical company BASF announced on the 14th that it would invest about 500 million RMB (302 million MYR) in Pudong to expand an automotive component shock absorber project, which is planned to be officially put into production in 2027. By then, the total production capacity is expected to increase by nearly 70%.
Li Simin, president of Burckhardt Compression (Shanghai) Co., Ltd. for China, also stated that in the future, they will continue to expand the production capacity of their factories in China, optimize business layouts in China, and promote the local R&D and manufacturing of more high-end products in China.
According to a report by Yicai quoting BASF Vice President and General Manager of Pudong Base Xu Yibin, the rapid development of new energy vehicles in China and the vast market make it a worthwhile place to invest, where tangible orders can be secured. Regarding the current uncertainty caused by U.S. tariff policies, he stated that products produced by BASF in Pudong mainly rely on the Chinese domestic supply chain, with some products imported globally. They are also making some adjustments, including supply chain adjustments to optimize local layouts.
Chen Jiayuan, CEO of Louis Dreyfus Company (North Asia Region), also mentioned that in such a complex and highly uncertain world, companies need to seek certainty to formulate long-term development plans, and the certainty is China. In addition to being the world's second-largest consumer goods market and the largest online retail market, with over 400 million middle-income population and continuous consumption upgrading, the market growth potential is the greatest certainty.
Chen Jiayuan also mentioned the policy support in Shanghai that brings certainty to the development of multinational companies. For example, this year's Pudong government work report specifically mentioned developing offshore RMB trading, cross-border trade settlement, and promoting pilot projects for cross-border hedging of bulk commodities.