BEIJING – A news report from chinadaily.com.cn:
Shanghai, serving as a vital gateway for foreign businesses entering the Chinese market, has emerged as a key hub for the regional headquarters of international companies.
In 2025, a total of 44 foreign-invested headquarters received a recognition certificate from the Shanghai government, bringing the total number of foreign-invested regional headquarters in the city to 1,060.
Shanghai has become one of the cities with the highest number of regional headquarters for multinational companies in China.
Shanghai is a preferred choice for companies for several reasons, including its vast market size, comprehensive industry chains, open and inclusive culture, proximity to the economically vital Yangtze River Delta and its platforms for observing and engaging with the latest research and development activities.
Meanwhile, strong policy support from the Shanghai government is also a significant advantage.
In February, the government issued a plan to encourage foreign companies to upgrade their headquarters in the city by integrating functions such as research and innovation, financial management, investment decision-making, procurement and distribution, supply chain management and shared services under one roof. A tiered system was established to nurture various types of headquarters, including China regional headquarters, Asia-Pacific regional headquarters, and global division headquarters. Support will be tailored to the different development stages and functions of these headquarters.
Driving innovation
Sonova, which has been operating in China for more than 20 years, considers the country one of the most strategic markets in its global landscape. In 2022, it established its China headquarters in Shanghai, a location that supports business decision-making. This year, Sonova received a recognition certificate for its China headquarters from the Shanghai government, marking a new milestone in its journey in China.
“Shanghai, the core of Sonova in China, not only provides resources such as talent but also connects Sonova with the local market,” said Fang Fang, general manager of Sonova China. “The establishment of the China headquarters has accelerated local innovation and product launches, achieving high efficiency in resource utilization.”
Fang said that Shanghai offers a premium business environment, a comprehensive industry chain and a rich talent pool, making it one of the most valued cities for regional headquarters and R&D centers for foreign companies.
“Shanghai boasts a large number of high-end medical professionals and advanced medical technologies, making it the most active regional medical center in China. This provides strong support for corporate innovation.”
In addition to serving as Sonova’s China headquarters, Shanghai is home to the company’s innovation center, which focuses on developing products to meet local demand. The center has introduced solutions such as the Phonak-branded Chinese speech processor, designed based on the tonal characteristics of the Chinese language and the local listening environment, offering a more natural and comfortable listening experience for people with hearing loss in China.
In recent years, Sonova also strengthened partnerships with local businesses and academic institutes to support the high-quality development of Shanghai’s healthcare industry. In September 2024, Sonova signed a memorandum of cooperation with East China Normal University to jointly focus on talent development. Both parties agreed to leverage their strengths to explore R&D opportunities in audiology, promote the creation of accessible educational environments, and enhance professional training and education through industry-academia collaboration. Additionally, they aim to disseminate hearing care knowledge to the general public and raise awareness of hearing health.
So far, Sonova has established a complete local supply chain in China, covering R&D, production, marketing and services. It has also optimized its market layout with the headquarters in Shanghai, production facilities in Suzhou, Jiangsu province, and quick access operations in Boao, Hainan province.
“Sonova is confident in the development of China and Shanghai. We are optimistic about the long-term future of the hearing health industry in the country,” said Fang.
