China
Shanghai
"When east meets west, tradition meets modernity, Shanghai startups show incredible resilience by combining their talents and technology with the huge market needs."
Highlights
Shanghai is working to strengthen its position in technology and innovation while maintaining its strong reputation as one of the world’s top financial and shipping hubs. As part of its plan to recover from COVID-19 restrictions, Shanghai released a blueprint to develop five "future industries:” health, smart devices, energy, space, and new materials.
To achieve a goal of reaching an output value of $71 billion by 2030 in these industries, Shanghai will build a research institute, establish several technology colleges, and develop 15 innovation centers. It also plans to build 70 hydrogen refueling stations and up to five R&D platforms while supporting its existing tech zones, including the Zhangjiang, Lingang, and Zizhu tech zones. Shanghai plans to promote three priority sectors: low-carbon businesses, the metaverse, and smart devices. The city aims to expand the market value of these sectors to more than $224 billion by 2025.
The Grand neoBay Sci-Tech Innovation Park, currently in development, will house 1,000 high-tech enterprises by 2025. Changchun GeneScience Pharmaceutical opened a global headquarters and R&D center at the Shanghai Zhangjiang International Medical Park in December 2023 and the same month it was announced that the Shanghai World Expo site will be developed into the Central Science and Innovation Zone in the Huangpu District.
Tech conference Mobile World Capital is held in Shanghai in June, and the SIA2023 20th Shanghai Smart Factory Exhibition and Shanghai International Industrial Automation and Robotics Exhibition take place each year.
Ecosystem by the Numbers
Sub-Sector Strengths
Life Sciences
In November 2023, Merck announced it completed the second phase of its new $31.4 million Biologics Testing Center in Shanghai, adding 1,500 square meters to the lab. Qingpu is a Life Sciences center with a focus on innovative medicines, clinical nutrition, diagnostics, and medical devices. CBC Healthcare Infrastructure Platform is investing $137 million to develop eight manufacturing facilities and two R&D facilities in Qingpu. Gene editing Biotech firm Epigenic Therapeutics raised $32 million in an August 2023 Series A round.
AI, Big Data & Analytics
Shanghai’s Maqiao Town of Minhang District has over 700 AI companies. In 2023, it introduced the AI Makers' Camp to empower startups to become AI unicorns and released an AI talent life guide with resources on education and entrepreneurship. Operated by the Shanghai Supercomputer Center, the Shanghai Artificial Intelligence Public Computing Service Platform offers companies and organizations cloud-based computing capabilities. Shanghai is home to one of Asia's largest AI data centers, the Lin-gang Free Trade Zone. AI startup Zhiyuan Robotics raised $84 million in a December 2023 Series A round.
Gaming
The China Esports Industry Research Institute opened in Shanghai in 2023 with universities, researchers, regulators, and game firms gathering to conduct industry research and draft national Gaming standards. Edward Gaming expects to complete construction on an esports stadium in Shanghai in 2025. With an initial investment of $720 million, the arena will be one of the largest projects in the global esports industry. Esports media startup VSPN raised $252 million in a February 2023 Series C round.
Reasons to Move Your Startup to Shanghai
Access to Funding
In January 2024, the Shanghai municipal government released 32 measures to guide venture capital to invest in early-stage, small-scale investments in technology, and support the development of corporate venture capital. The Chinese government plans to solicit more funding by lifting restrictions in the manufacturing sector in 2024.
Financial Hub
Shanghai is a leading financial hub with some of the best financial infrastructure in the world. Besides conventional exchanges, the city has set up a cross-border payment system and is home to the Shanghai Clearing House, which supports the stability of financial markets. Shanghai’s 2024 economic development goals include a focus on improving the city's international influence as a center for economy, finance, and trade.
Global Connections
Shanghai is the largest distribution center for imported consumer goods in China, with a 3.6% increase in container volume in 2023. The city is the first choice for international brands entering the Chinese market thanks to its huge market consumption capacity. It has been named the world’s busiest port for 14 consecutive years, with a container throughput exceeding 49 million 20-foot equivalent units (TEUs) in 2023.
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