'Where the future gets built:' Hongqiao Hub builds on its own success story

Hongqiao started out as a transportation axis, and that connectivity helped move the area into the ranks of global powerhouses in the four years since it was designated an international economic hub by the Chinese government.

The Hongqiao International Open Hub is part of the broader Yangtze River Delta initiative to create a regional ecosystem of trade, technology and economic development.

The Hongqiao Hub is now home to more than 500 multinational firms, more than 154 billion yuan (US$21.2 billion) in investment and 85.6 billion yuan in trade.

"Hongqiao isn't just where China meets the world; it's where the future gets built, one connection at a time," said Zhong Xiaoyong, former executive director of Hongqiao's Administrative Committee.

Exemplifying the rapid success of the zone is Shanghai United Imaging Healthcare, located in the North Hongqiao Intelligent Manufacturing Industrial Park.

The company, which takes advantage of Hongqiao's excellent air transport connections, exports advanced MRI systems to over 40 countries.

Chief Executive Zhang Qiang, citing a 25 percent rise in international sales, called Hongqiao "a launchpad."

Logistics and government policies such as expedited customs clearance have cut overseas delivery times by 30 percent. MRI systems shipped, for example, to Germany now takes seven days instead of 10.

The company has set up a research and development facility in the Yangtze River Delta's G60 Sci-Tech innovation valley and filed 15 new patents last year.

Another beneficiary of Hongqiao's status is Trina Solar, a photovoltaic giant that set up its international headquarters there in 2022. A year later, the company posted a 34 percent rise in revenue to 113.5 billion yuan in 2023.

"Hongqiao's connectivity allowed us to attract talent from 66 countries and deploy projects across 160 markets," says Gao Jifan, chairman of Trina Solar.

Leveraging Hongqiao's transport connectivity, the company partnered with 10 new international suppliers last year, cutting costs by 15 percent and strengthening its supply chain.

Anhui Province-based Yufeng Energy has also tapped into the benefits of Hongqiao.

"We used Hongqiao's financial ecosystem and international legal services to secure US$200 million in offshore wind contracts," said Chief Executive Wang Lei.

The company completed the construction of an offshore wind farm in the East China Sea in 2023, with an investment of US$150 million. The project came on line three months ahead of schedule.

Moreover, Yufeng Energy's green hydrogen projects have received significant funding from the G60 Songjiang Zhong'an Science Park, resulting in a 30 percent reduction in production costs and a 25 percent increase in output.

For Li Auto, the infrastructure available in the Hongqiao hub has transformed business.

"Testing autonomous vehicles in Hongqiao saved us months in regulatory hurdles," said Li Xiang, founder of the electric vehicle maker.

The company expanded autonomous driving testing to 1,500 hub-linked smart roads in 2024, a 50 percent increase from 2023. Li Auto has been able to extend operations to five new Yangtse Delta cities.

Also tapping into the Yangtze River Delta ecosystem, Anhui's Qiantong Information Technology has used blockchain-based platforms to slash customs clearance times by 50 percent for smaller businesses.

"Goods now reach Rotterdam 20 percent faster," said Wu Min, a logistics analyst.

Qiantong has partnered with 20 international logistics firms to expand its blockchain network.

Progress in the development of legal and financial services is complementing the development of technology and trade in in the region.

For example, the Hongqiao International Central Legal Hub, which houses 84 law firms and arbitration centers, has resolved over 7,300 cross-border disputes since 2023.

When a Hefei-based semiconductor firm faced patent litigation, Hongqiao's "one-stop" legal service teams settled the case in weeks.

Corporate leaders praise the impact the Hongqiao Hub has had on business.

Maria Chen, Asia-Pacific head of Dun & Bradstreet, said, "Our regional headquarters in Hongqiao gives us real-time access to Yangtze River Delta business data, powering AI-driven market insights."

Zhong, the former executive director of Hongqiao's Administrative Committee, said, "We're a critical node for domestic growth and a rainbow bridge for global flows."

As the Hub enters its fifth year, new targets have been set to continue its growth.

Key initiatives include expanding the economic circle within a two-hour railway connection to more places in the Yangtze River Delta region, elevating "Silk Road e-commerce" with 10 more Hongqiao import commodity centers, and investing US$1 billion in carbon-neutral projects through a joint fund backed by Trina Solar and Yufeng Energy.

The hub is also set to launch a state-of-the-art facility designed to facilitate more cross-border e-commerce and digital trade. It will feature advanced blockchain technology, AI-driven logistics systems and a comprehensive legal framework to support international trade disputes.