Shanghai will still remain a major choice for global investment, said EY Global Chairman and CEO Carmine DiSibio via a video chat with the media during the 32nd International Business Leaders’ Advisory Council (IBLAC).

The IBLAC is held annually in Shanghai each fall, gathering global minds to contribute to the future development of the city and the bettering of its business climate. Due to the pandemic this year, the meeting has been organized online, with nearly 40 business leaders from around the globe attending.

Communicating with potential investors in more active ways

COVID-19 has plunged the global economic outlook into a high degree of uncertainty, while the effective anti-epidemic prevention measures and supportive economic policies adopted by China have been recognized by international entrepreneurs.

China experienced the test of the epidemic earlier than most countries around the world, and it recovered from the impact of the epidemic earlier, commented Carmine DiSibio. As he noted, China is expected to see investment levels recover much quicker, which will further promote economic development, with economic growth currently faster than most other countries.

He also mentioned that the foreign direct investment to Shanghai is amongst the top in the world, which reflects the endeavors it has been making. Despite the pandemic and the subsequent economic crisis and stunted international situation it has incurred, the foreign direct investment to Shanghai from January to May 2020 kept increasing, as did the number of R&D centers and global/regional headquarters opening here.

As he said, Shanghai is a place of opportunities. In particular, the regulations issued this year about promoting foreign investment have played active roles in boosting foreign investors’ confidence and promoting fair participation for foreign capital.

However, it is necessary to further relax supervision and maintain contact with investors throughout the investment promotion cycle, in order for Shanghai to compete with other leading cities in the world and strive for investment from potential investors, said Carmine DiSibio, suggesting that Shanghai should be prepared to adopt a new and more active way to communicate with potential investors.

Better digital infrastructure brings new business models

Consumption is one of the important driving forces of economic growth. The leading role of consumption is best represented in Shanghai, according to Jean–Paul Agon, chairman and CEO of L’Oréal Group. He thinks Shanghai is one step ahead in retail, consumer behavior, modernization and new services.

In his view, consumption is the lifeblood of a city’s economy, and Chinese consumers, especially Shanghai consumers, are already at the forefront of the global market. They want to access the world’s latest and best products, services and experiences right now. Therefore, Shanghai should make standards to support product approval and simplify them to promote more “launches of global debuts.” At the same time, it could further expand tax-free business to attract more companies to Shanghai.

Speaking of the impact of the pandemic, Jean–Paul Agon suggested Shanghai create new shopping scenarios and infrastructure. As he said, Shanghai can explore new business formats by updating and expanding digital infrastructure, so as to strengthen connection with consumers.

He added that digital e-commerce is now at the heart of L’Oréal. In China, more than 50% of L’Oréal’s sales are achieved through e-commerce, far ahead of any other country in the world. As he believes, better digital infrastructure will help companies develop new business models in Shanghai and further improve product quality and safety.