Arch Shanghai is the first commercial building in Shanghai to generate more than 10 billion yuan ($1.37 billion) in tax revenue in the first 10 months of this year, the Changning district government, where the building is located, announced on Monday.

Located in the center of the Hongqiao International Open Hub, Arch Shanghai occupies 35,500 square meters and consists of a 148-meter-high 6E Grade A office building, a shopping mall and a huge underground garage system.

The building currently has 135 companies, including eight Fortune 500 companies, according to You Yan, director of the Changning District Investment Promotion Office. Nearly one third of the 135 companies are from the online new economy sector. They include China's e-commerce giant Pinduoduo and those that offer modern commerce and services.

Despite the impact of the COVID-19 pandemic, digital economy and modern commerce and services have continued to grow, and this has contributed greatly to the rapid growth of Arch Shanghai's tax revenue, said You.

For example, Pinduoduo has two affiliated companies and its headquarters located in the building and they have become the main driving force behind the rise in Arch Shanghai's tax revenue, according to You.

You added that the strong growth of Arch Shanghai's tax revenue also reflects the industrial ecosystem of the Hongqiao area, which is located in the western part of Shanghai.

The online new economy is presently the district's leading industry, according to Lou Yun, an official from Changning district's development and reform commission.

Changning is now home to more than 5,800 online new economy enterprises and 21 e-commerce platforms each with transaction volumes of more than 100 million yuan, Lou said.

The total transaction volume of e-commerce platforms based in the district is ranked first in the city and accounts for about a quarter of the city's total. In 2021, digital economy enterprises in the district generated a total of 18.1 billion yuan in taxes, a year-on-year increase of more than 45 percent and accounting for 42 percent of the district's total tax revenue, Lou added.

The fast growth of the digital economy could not have been achieved without local government support, You said. She pointed out that the local government has gone all out in terms of polices, services and support to create a business environment where enterprises can thrive.