Shanghai unveils business action plan to support local and international enterprises

After living and working in China for 38 years, Danish entrepreneur Simon Lichtenberg said Shanghai is not only the best place for businesses to grow, but also a home where he is willing to contribute and build together for the long term.

“My first and deepest impression is that the Shanghai municipal government has made great efforts to improve the business environment across various areas,” said Lichtenberg, founder and CEO of Shanghai-based furniture manufacturer Trayton Group. He noted that these efforts are not superficial but involve coordinated measures that make businesses feel valued and supported in practical ways.

Lichtenberg made the remarks on Jan 4 as Shanghai released the latest version of its action plan which aims to further accelerate the creation of a world-class business environment. The plan is intended to provide clearer guidance, improve operational efficiency, and address the evolving needs of both domestic and international enterprises.

Titled “Shanghai 2026 Action Plan to Accelerate the Development of a World-Class Business Environment”, the plan is designed to foster a world-class business environment, stimulate the vitality of various market entities, and enhance Shanghai’s attractiveness to high-end domestic and international resources, according to Chen Jining, Party secretary of Shanghai.

“During the 15th Five-Year Plan (2026–30) period, we will continue to prioritize the optimization of the business environment as a key driver of high-quality development, further deepen high-level opening-up, attract top enterprises and talents from home and abroad, and fully unleash innovation and creativity,” Chen said, emphasizing that the plan is a long-term strategy to sustain growth and competitiveness.

The new plan is the ninth consecutive action plan issued by the Shanghai municipal government and consists of 26 tasks across four key areas.

Compared with previous versions, this year’s plan features more focused task arrangements and more concise wording, said Kong Yuan, deputy head of the business environment building division at the Shanghai Municipal Development and Reform Commission.

“The plan’s design reflects careful thought and aims to make implementation smoother and results more tangible for enterprises,” Kong added.

Lu Ming, a professor with Shanghai Jiao Tong University’s Antai College of Economics and Management, said the latest plan reflects a more pragmatic approach and better incorporates Shanghai’s own characteristics, adding that it is shorter and more streamlined than last year’s version.

“The emphasis is on measurable outcomes, ensuring that each initiative directly benefits market entities while reinforcing Shanghai’s long-term development goals,” he said.

Lu said the plan integrates World Bank business environment evaluation standards into Shanghai’s concrete practices, while also highlighting the city’s long-standing strengths in industrial ecosystems and social governance. “It demonstrates how local characteristics can be aligned with global benchmarks, providing a model that other cities may learn from,” Lu said.

“As an international metropolis, Shanghai can play a leading role in improving the business environment, with successful practices that can be promoted and replicated in other cities,” Lu added. He emphasized that such efforts demonstrate China’s continued commitment to reform and opening-up, which will further facilitate investment attraction and business confidence.

Founded in Shanghai in 1995, Trayton Group is now headquartered in the city’s Minhang district. Lichtenberg said enterprises have clearly felt stronger support from the government, including faster responses, timely problem-solving, and a greater sense of being valued. “The measures taken show that the government is listening and adapting to the real needs of businesses,” he said.

Similar views were shared by Xu Yuxuan, vice-president of public affairs at Black Lake Technologies, an industrial internet company based in Shanghai’s Changning district. Founded in 2016, the company faced significant challenges in market orders in 2024. Xu highlighted that the company benefited directly from streamlined policies and support measures.

“If Black Lake were not headquartered in Shanghai, without the strong industrial ecosystem of the Yangtze River Delta region and policy support from Shanghai’s improved business environment, it would have been difficult for us to overcome the funding pressure and achieve financial self-sufficiency,” Xu said.

He added that administrative procedures have become increasingly efficient, with many services now completed through a single online platform, significantly reducing paperwork and offline processing.

Xu emphasized that Shanghai’s business environment continues to improve through constant problem-solving and frontline engagement. Further strengthening coordination at various government levels will help foster a more robust enterprise service system, enabling faster development and operational efficiency for businesses, he said.

According to Kong, all 58 tasks outlined in Shanghai’s eighth edition of the business environment action plan have been completed. World Bank enterprise survey results show that Shanghai has reached global best practices in 22 of the 59 evaluation indicators.

Key achievements include deepening reforms aligned with World Bank standards, optimizing enterprise-related services and regulation, strengthening protection of enterprises’ lawful rights and interests, empowering grassroots governance, and fostering broad social participation in building a better business environment.

“Together, these measures form a comprehensive approach that both reflects Shanghai’s unique strengths and meets international expectations,” said Lu from Shanghai Jiao Tong University.

Contact the writers at wang_ying@chinadaily.com.cn