Welcome mat laid out for big headquarters

By Dong Hui and Liang Yiwen  |   2008-12-19  |     NEWSPAPER EDITION

SHANGHAI is drawing up a new city blueprint to attract the headquarters of multinational companies by allocating different industries to various districts.

The new headquarters planning blueprint was unveiled yesterday by the Shanghai Headquarters Economy Promotion Center. The blueprint includes 22 industrial parks, business parks and office areas in more than 10 districts.

Officials issued the blueprint during the opening ceremony of an exhibition to promote some of the areas for headquarters in the city. The exhibition, which runs for three days at the Shanghai International Exhibition Center, displays plans, construction processes and policy privileges for these areas.

"We still aim to attract the headquarters of multinational companies," said Li Dong, the center's secretary general. "Like Unilever in the Hongqiao Linkong Business Park where one year's tax on the single regional headquarters surpassed 100 million yuan (US$14.6 million)," Li said.

Earlier this month, Shanghai unveiled a commitment to attract international investment against the backdrop of the global financial crisis, by offering financial incentives to stimulate companies planning to move regional headquarters from other cities.

Under the new corporate-attraction strategy, Shanghai makes it clear which industries will be allocated to which districts. The city's first headquarters blueprint issued last year, which included 16 headquarter areas in 12 districts, has been changed.

Office building areas in downtown, including the Lujiazui Financial Trade Zone, Nanjing Road W., Xujiahui and Huaihai Road, are still in the list.

Some headquarter areas targeting specific industries have been added to the blueprint, including an area for furniture headquarters and a bank card industry park in Pudong New Area, a small and medium businesses community in Putuo District, creative industry parks in Jiading District and a medical park in Nanhui District.

The Huangpu District government yesterday launched a 60-million-yuan fund in subsidies to lure multinational companies to establish regional headquarters in the district and pledged even more favorable policies.

In addition to the financial support and reward from the Shanghai Municipality, the headquarters of multinational companies moving to and registering in Huangpu, will also get subsidies and rewards from the district government.

"I hope the new policy will serve as a Christmas feast in the economic downturn," said Wang Wentao, the district's Party secretary.

The district government will launch a special fund with 60 million yuan allocated from the annual budget to encourage multinational companies to move their headquarters to the district.

Subsidies for decorating will be offered to eligible companies, according to their leases. Regional headquarters with a lease of three years and a lease area of more than 1,000 square meters will be provided with a one-off grant of between 500,000 and 1 million yuan.

The government will also support staff training for eligible companies and will subsidize 30 percent of the training expenses for three years by up to 1 million yuan.