"If you want to attract talent, you need to offer something unique," he said.
Shanghai beat 29 rival cities in the survey with the highest recognition in terms of working and living environment, an expatriate-friendly policy, and administrative capacity.
Stuart Dunn, a Briton who has lived in Shanghai for four years, said it is an attractive place, with a very low crime rate and reasonable cost of living compared with major cities in the West.
"Shanghai has great arrangements for sports events, and the entertainment and social life here are exciting. It's not only a center for business, but also for culture and fun," said Dunn, who manages a bar chain.
He said he lived in the Middle East before coming to Shanghai and believes China offers more cultural diversity.
Although Shanghai and Beijing scored the highest points overall, they scored the lowest on environment.
Beijing was shrouded in severe smog for weeks early this year, with pollutants from vehicle emissions, coal- burning in neighboring regions and construction dust.
The serious pollution raised public awareness and prompted the government to take emergency measures.
Jon Michael Davis, president and chief executive officer of the National Institute of Clean-and-Low-Carbon Energy, said he chose Beijing as his favorite Chinese city for its robust business and culture.
About 550,000 foreigners were working in China last year, the State Administration of Foreign Experts Affairs says.
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