Meanwhile, some 70,000 foreign companies have set up operations in Shanghai, contributing about 25 percent of the city's GDP and one-third of its tax revenue. They also account for more than half the city's aggregate industrial output generated by companies with an annual turnover of at least 20 million yuan. Nearly two-thirds of Shanghai's annual import and export value has been contributed by these foreign companies.

"Shanghai is still one of the most attractive destinations for foreign investment worldwide," Zhang said.

At the start of this year, the authorities in Shanghai rolled out the latest action plan to improve the city's business environment. The plan has been revised every year since 2018.

Chen Jining, Shanghai's Party secretary, said: "Improving the business environment is key to stabilizing market expectations and strengthening confidence. An optimized business environment is required, as Shanghai aims to further elevate its core competitiveness in the global market and better serve China's new development paradigm."

Zhang said Shanghai should better address the Belt and Road Initiative to set up new cooperation channels and seek fresh growth engines, adding that the China-Europe Railway Express should play a bigger role in providing new trade opportunities for companies based in the city.

Contact the writers at shijing@chinadaily.com.cn