In 2006, Shanghai totally approved 4061 foreign investment projects with a contract amount of USD14.574 billion, representing a year-on-year increase of 5.4%; materialized foreign investment is estimated to be over USD7 billion, higher than last year.
At present Shanghai has absorbed 500 functional projects. Among them there are 154 regional headquarters, 150 investment companies and 196 R&D centers.
The growth of foreign investment in the service sector continued to accelerate in 2006. The city approved 2926 projects in the service sector with a contracted investment of USD9.762 billion, a year-on-year increase of 33.5%. Commercial projects keep the strong momentum of growth with some more global brands settled in Shanghai. Many service outsourcing projects were completed; financial facilities projects kept increasing; investment in energy source, environmental protection, information and chemical industry was active; and there was new record in attracting foreign investment.
The contribution of foreign invested enterprises to Shanghai’s economic and social development has risen to a new level. Revenues of foreign invested enterprises are expected to grow by over 12% compared with last year; and the actual tax payment increases about 20% year-on-year. Foreign invested enterprises account for about two thirds of the total industrial output and foreign trade volume of the enterprises at the city level and above. Employees of foreign invested enterprises increased by 130,000.