(Yicai) March 26 -- Shanghai is the number one choice for businesses that are planning for the future, Chinese and foreign entrepreneurs told Yicai at the 2025 Shanghai Global Investment Promotion Conference, which kicked off yesterday.

Shanghai has become an ‘accelerator’ for Geely Holding Group’s technological transformation and globalization strategy, Li Shufu, chairman of the Chinese automotive giant, said at the event, which is also known as the Invest in Shanghai Week.

“Geely, which first chose to invest in the city over 20 years ago, will continue to hike its investment in Shanghai, focusing on cutting-edge areas like new energy vehicles, smart connectivity and hydrogen ecosystems,” Li said. In this way, the Hangzhou-based firm will help build Shanghai into a world-leading automotive innovation cluster, he added.

“In today’s world of increasing economic uncertainty, Shanghai’s competitiveness comes not only from its strategic positioning with an ‘international perspective,’ but also from an increasing number of ‘Chinese opportunities,’” said Michael Bi, managing partner of UK professional services network Ernst & Young’s China arm.

Shanghai stands out as an attractive destination for international investment due to its business-friendly environment, forward-looking policies, industrial ecosystem, broad talent pool and advanced financial services, not to mention its role as a key node in China’s dual circulation strategy, which integrates domestic and international markets, Bi said.

“Any elevator company that doesn’t invest and succeed in Shanghai can’t really be considered successful,” said Judy Marks, chairman, chief executive officer and president of US elevator maker Otis Worldwide.

Shanghai is the city with the most elevators in the world at over 350,000, Marks said. Shanghai also has a large pool of highly skilled talent to meet the needs of innovative businesses, making it an ideal location for research and development hubs.

Entrepreneurs' Paradise

Shanghai’s business environment, technological innovation and high level of openness make it a paradise for young people to innovate and start their own businesses. More than 2,000 companies are registered in Shanghai every day.

Four out of the five companies in China developing electric Vertical Takeoff and Landing vehicles, also known as "air taxis," and which have already achieved their first flights, were founded in Shanghai, said Xie Ling, founder of Shanghai Fukun Technology.

The city's NEV industrial chain, which boasts expertise in areas like batteries, electronic controls as well as communication and power distribution, supports the rapid growth of eVTOLs in the field of aviation electrification, Xie said.

Government Support

The Shanghai government said this month that it will start to provide a certain amount of computing power vouchers, model vouchers and data vouchers at a discounted price each year to support startups. The city will also allow AI firms to value their computing power and data as equity, so as to engage in diversified financing.

Daguan Data spends tens of millions of Chinese yuan, equivalent to millions of US dollars, on renting computing power every year, said Chen Yunwen, founder of the large language model developer.

Previously, Daguan Data used the computing power to enhance its creditworthiness and to raise financing through bank loans. However, if companies are allowed to exchange computing power for equity, this will help technology startups grow.

Editor: Kim Taylor