1.Macro-economic Indices At the very beginning of last century, Shanghai was the biggest industrial city in China and the financial center in the Fareast. In the 1990s, taking the opportunity of the development and opening-up of Pudong, Shanghai deepened the economic reform process and expanded opening-up, which have made great achievements. From 1998 through 2002, total GDP and per capita disposable income increased by two digitals. By 2002, the GDP of Shanghai had reached USD65 billion with per capita GDP standing at about USD5000. According to our expectation, by 2007, our per capita GDP will be USD7500. At the same time, the rate of unemployment will be below 3%-5% and the ratio of inflation below 2%-4%.
Shanghai’s infrastructure input in 2002 amounted to RMB58.3 billion, which accounted for 27% of Shanghai’s total fixed assets input and was much higher than that in other major Chinese cities. In the past 5 years, the average increasing rate for infrastructure input was 11% while the major fields fell within urban construction, transportation, post and telecommunications and public facilities construction.
2.Industrial Development
Shanghai used to be an industrial center and have a very solid industry base. In recent years, the tertiary industry has developed rapidly, with annual increasing rate at 12% and took up 51% of the GDP of Shanghai in 2002. Compared with other major foreign investment cities, Shanghai puts its priorities in industrial and service sectors. Six key industries (IT, motor, petrochemicals, fine chemicals, complete set of equipment, biopharmaceuticals) realized 58% of the total industrial output while the four primary sectors in the tertiary industry (finance and insurance, real estate, transportations, post and telecommunication, wholesale and retailing) achieved 62% of the total output in this industry, in which finance occupies 21%, staying first.
Shanghai boasts obvious advantages in many industrial fields and strong capability in processing. In the next five years, Shanghai will take measures to develop its secondary and tertiary industries under the direction of the policy of “Same Priority in the Secondary and Tertiary Industries”, mainly focusing on IT, finance, trade and commerce, motors, real estate, complete set of equipment, cultivating new industries such as biopharmaceuticals, modern logistics, new materials, environmental protection and simultaneously developing fine steels, petrochemicals and fine petrochemicals. The added value of the six pillar industries will have reached 60% of the total GDP by 2005. IT will see a fastest growth rate of 21% annually. Finance will be core industry, accounting for 18% of total GDP. As for commerce, we will encourage chain operation and information management. What’s more, 2010 Expo will bring enormous opportunities for complete set of equipment.
Focusing on the upgrade of industrial and commercial structure, Shanghai will fully promote four centers, which are respectively located in the north, south, east, and west part of Shanghai. The north will become the base for fine steels while the east IT base, west part as the comprehensive motor base and south part mechanical base. Those will bring a lot of investment opportunities. For example, by 2005, the total input will reach RMB160 billion in east part as IT base, RMB100 billion for south part as mechanical base.
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