Why upgrading your Shanghai office could pay off
September 29, 2012 | BY
clpstaff &clp articlesThe Shanghai Municipal Government has released Opinions encouraging multinationals to set up regional headquarters there, but will this cause tension with Beijing, which is expected to respond with a counter offer
The Municipal Government issued the Implementing Opinions on the «Shanghai Municipality, Provisions on Encouraging the Establishment of Regional Headquarters by Multinational Corporations» (上海市《上海市鼓励跨国公司设立地区总部的规定》实施意见) on August 8 2012.
The Opinions allow regional headquarters to obtain subsidies of up to Rmb8 million ($1,270,000) for establishing or upgrading existing offices, grants them the ability to manage self-owned funds, simplifies labour and employment issues and facilitates better customs clearance.
Shanghai is hoping to attract more multinationals to set up headquarters and develop the municipality's economy. The city is keen to incentivise and grow the economy through such policies, especially considering the economic downturn in the EU and US.
Shanghai vs Beijing
In 2008, Shanghai issued similar Provisions and Opinions. Six months later, Beijing reciprocated issuing identical legislation that was more attractive in terms of subsidies for multinationals and their regional headquarters. (See Beijing challenges Shanghai to win regional HQs)
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