Globalizing Shanghai: foreign investment and urban restructuring

The rapid economic ascent of China and the increasing integration of the world economy over the past two decades have made the metropolises in China, such as Shanghai and Beijing, emerging global cities. As in other parts of the developing world, foreign investment is a central force underlying the emergence of Chinese metropolises as global cities. This is especially true in Shanghai where major foreign investments in China are concentrated. The primary objectives of this paper are twofold: (1) to examine the process of foreign investment development in Shanghai and (2) to assess the significance of foreign investment in the transformation of Shanghai into a global city. As the literature on global cities dwells primarily on the experiences of those cities with advanced economies, this paper broadens the scope by contributing to a better understanding of the dynamics of global city formation in the developing world.