Tourists and the buildings in Lujiazui, the financial district in Shanghai, are reflected in a puddle left on the street in Shanghai on July 17, 2023 after scattered showers, presenting the beauty of a “land of the sky.” Photo: VCG

China's top economic planner, the National Development and Reform Commission (NDRC), issued guidelines on Wednesday to upgrade Shanghai's Hongqiao international hub. 

The move is part of China's ramped-up efforts to attract foreign investment and create a favorable business environment, experts said.

The guideline highlighted that support will be given to eligible enterprises within the Hongqiao Business District to pilot the policy of integrating domestic and foreign currency funds for multinational companies. 

According to the policy it permits multinational corporations to conduct overseas centralized transactions for their foreign subsidiaries within China, granting companies more autonomy over the fund exchange process. 

This measure can facilitate foreign businesses to operate in China and can also be seen as China's support and continuation of globalization, Cao Heping, an economist at Peking University told the Global Times on Wednesday. 

“It will greatly facilitate the development of foreign business in China, allowing global and Chinese companies to compete and cooperate on the same platform,” Cao said.

The guideline also supports the Hongqiao Business District in establishing a pilot area for "Silk Road e-commerce" cooperation. It encourages the district to take the lead in collaborating with relevant countries to pilot international high-standard e-commerce rules and explore new models of mutually beneficial, win-win cooperation.

The guideline also supports the integrated development of Hongqiao district and other areas within the Yangtze River Delta region. For example, the guideline supports Hongqiao to build a road test area for intelligent connected vehicles together with Kunshan and Xiangcheng of Suzhou city, east China’s Jiangsu Province.

In February 2021, the State Council approved the overall plan for the construction of the Hongqiao International Hub, which has made it one of the most vibrant, potential-rich, and open regions in the Yangtze River Delta region.

The development of the Hongqiao international hub focuses primarily on transportation, exhibitions and conventions, and business services.

Cao noted that the Hongqiao international hub has excellent location advantages and served as an important transportation hub. By upgrading Hongqiao international hub with these functions, it will drive the overall economic development of the Yangtze River Delta region, Cao said.