Denmark's biopharmaceutical company Novo Nordisk signed a strategic cooperation framework agreement to set up a new entity in the Lingang Area, a section of the China (Shanghai) Pilot Free Trade Zone, at the China International Import Expo on Saturday.

The new establishment, Novo Nordisk (Shanghai) Pharma Trading Co Ltd, which entails an investment totaling 200 million yuan ($30 million), will focus on research and development, import and distribution of finished products.

"China's continuously improved business environment, growing innovation ecosystem, and its stable policy environment make us confident in the future of the market," said Christine Zhou, senior vice-president and president of China at Novo Nordisk.

Further inspired by the country's accelerated formation of a new landscape featuring international and domestic dual circulation, Novo Nordisk is set to step up research and development from China and for China.

"With the help of the measures to deepen China's reform and opening-up such as the hosting of CIIE, the company will leverage this opportunity to further root itself in the China market and work toward its commitment to changing the situations of diabetes and other chronic diseases in the country," Zhou said.