SHANGHAI RESOLUTELY INTERNATIONAL

    The Pudong New District in Shanghai, where 80 multinational corporations have chosen to set up their regional headquarters, is resolutely international in its outlook and not afraid to experiment.

    The district, which covers an area of 570 square kilometers, attracted 3.888 billion U.S. dollars of foreign funds in the first ten months this year, one-third of the total inflow of foreign funds to Shanghai, according to local government statistics.

    The district used 1.925 billion U.S. dollars of foreign investment in the first half of the year, up 25 percent year-on-year.

    Analysts say that the reason foreign funds continue to wash into the district is because Pudong has adopted a series of flexible policies which offer foreign investors a positive investment environment.

    This year Pudong scrapped the restriction that prevents foreign investors from holding more than 49 percent of a Sino-foreign joint human resources intermediate agency.

    Pudong has also simplified customs declaration procedures, shortening waiting times for international goods and personnel in the district. "The move is welcomed by multinational corporations," said Du Jiahao, secretary of the Communist Party of China in Pudong.

    "What Pudong has done is to establish an economic environment that meets international norms and create a better investment environment to make it more attractive for foreign funds," Du said.

    Pudong, which opened up to foreign investors in 1990, was listed by the central government as a test field for comprehensive reforms last year.

    A white paper on the foreign investment environment in Shanghai shows that 90 percent of foreign businesses surveyed said Shanghai was their favorite investment destination on the Chinese mainland.

    The white paper -- which covers topics such as the protection of intellectual property rights, the 2010 World Expo, comprehensive reforms in the Pudong New District and business costs -- was jointly compiled by the Shanghai foreign trade and economic cooperation commission and the municipal working committee for foreign investment in August this year.

    The white paper reveals that more than 70 percent of the investors polled gave Shanghai a score of at least 80 out of 100 for its overall investment environment. And 45.1 percent saw government efficiency as the city's international competitive edge, with 56.8 percent and 69.5 percent, respectively, choosing labor force quality and infrastructure.

    One of China's key financial hubs, Pudong is home to more than 380 Chinese and foreign financial institutions. The assets of the 59 foreign financial institutions in Pudong account for more than 60 percent of the assets of all foreign financial agencies in China.

    More than 30,000 foreigners now work and live in Pudong, and parts of the area have become a genuine international community.