Pfizer, the world largest pharmaceutical company, announced it would set up its regional headquarters and a clinical trial center in Shanghai.
The final location has not yet been decided but the company will probably set up in the Zhangjiang hi-tech zone.
Pfizer is the second multinational pharmaceutical company to set up a clinical trial center in China, after AstraZeneca.
Swiss company Roche also has plans to open a research and development center in the city and US company Eli Lilly has already opened a research lab in the Zhangjiang zone.