Shanghai offers financing and land-use support to foreign investors, as city commits to meet 5 per cent economic growth in 2024

“We will give more policy guarantees in the areas of land use, energy supply, environmental evaluation and financing, [while] encouraging more foreign companies to invest in green transition, digitalisation and technological innovation,” Gong told a press conference after the close of the annual Shanghai People’s Congress. “We will deliver better services to international investors.”

His pledge reflects Shanghai’s commitment to meet the local economy’s 5 per cent growth target for 2024 after failing to achieve last year’s 5.5 per cent economic goal.

“Shanghai needs to make one big jump, or more, to achieve that lofty goal,” Gong said.

With a population of 25 million people, the metropolis attracted US$24 billion in foreign funds last year, surpassing the previous record of US$23.96 billion in 2022.

Those new projects, however, have not yet started commercial operations.

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“Foreign-funded projects often play an important role in driving Shanghai’s growth,” said Ding Haifeng, a consultant at local financial advisory firm Integrity. “Landmark projects like Tesla’s Gigafactory and Disneyland have also honed Shanghai’s image as an investment magnet.”

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A severe external environment was also a stumbling block to Shanghai’s economic recovery efforts, Gong said on Tuesday.