SHANGHAI
MUNICIPALITY
General Background
Shanghai -
abbreviated as Hu - is a municipality
directly under the central government administration. Shanghai is located at the estuary of
the Yangtze River and occupies a center position on China's eastern
coast. Shanghai is the largest commercial and
financial centre in China.
Infrastructure
Water Transport
¡Ð Shanghai is a transportation hub of central China.
The port of Shanghai is the largest in China, served by more
than 19 international container shipping lines.
In 2000, the number of containers handled by Shanghai grew by
33% to 5.6 million TEU. Shanghai is linked to the inland provinces
via the Yangtze River, which leads to as far as Chongqing. An electronic data exchange (EDI) system
is now in operation to speed up the customs procedures in Shanghai's
ports.
Railways ¡Ð
The railway network consists of trunk lines connecting Beijing, Hangzhou
and other major cities in the country.
The opening of Shanghai-Kowloon Railway shortened the travel
time between Hong Kong and Shanghai to 29 hours.
Highways ¡Ð
Road links have been greatly improved in recent years. The opening of Shanghai-Ningbo Expressway
and Shanghai-Hangzhou Expressway shortened the travel time from Shanghai
to Nanjing and Shanghai to Hangzhou to only 2.3 and 1.5 hours respectively.
Transportation within Shanghai has also improved with the construction
of Yian'an Road which connects the airport, the Bund and the outer ring
road.
Air Transport
¡Ð The Hongqiao Airport is one of the largest airports
in China and also the hub of civil aviation in east China. It is now served by more than 300 air
routes and providing flight services to 88 domestic and overseas cities. The Pudong Airport provides an annual
handling capacity of 20 million passengers and 750,000 tons of cargo.
Telecommunications
¡Ð
By end-2000, there were 3.6 million mobile phone users around the city,
representing an increase of 77%.
The mobile phone penetration rate stood at 24.5%, the second
highest after Beijing. The
penetration rate for residential fixed line telephone reached 86%.
Gas Supply
¡Ð
To accelerate the country's energy development strategy in coming years,
a major gas pipeline with total length of 4,200 kilometers will be built. The pipeline will start from the Tarim
Basin in Xinjiang and ends at Shanghai, running through the provinces
Gansu, Shaanxi, Shanxi, Henan, Anhui and Jiangsu and Ningxia Hui Autonomous
Region. It aims to deliver
gas from the country's western area which were major gas production
bases to central parts as well as Yangtze River Delta areas and the
eastern regions.
Industries
Shanghai is
one of the most important industrial bases in China. In 2000, Shanghai's industrial output reached Rmb691.5 billion
(+13.5%). Of which, the
city's output of steel and automobiles reached 17.8 million tons and
253,000 vehicles respectively, ranking the first and second in China
respectively.
Shanghai is
a leading automobiles manufacturing region. The city has set up two joint ventures with the world's automobiles
giants, Volkswagen and General Motors. In the first half of 2001, the output of automobiles grew by
13.4% to 129,400 vehicles.
The six pillar
industries of Shanghai are automobiles, electronic & telecommunications
equipment, iron & steel, petrochemical & fine chemical processing,
power station equipment & parts manufacturing and home electrical
appliances. The
total output of these six piller industries increased by 18.7% in 2000
and accounted for 53.6% of the city¡¦s total industrial output.
Apart from
the pillar industries, Shanghai also aims at becoming an international
information centre in China. As
such it will concentrate on developing information technology (IT) industry
in coming years. In 2000,
Shanghai's IT industry generated Rmb35 billion in added value output,
representing and increase of 28.8% over 1999.
Major IT products included large-scale integrated circuits, computers
and mobile telecommunications equipment.
Besides, the
city has started to build a chemical industry park which is open to
both domestic and overseas investors.
The Shanghai Chemical Industry Park, located in Jinshan District
in the southern part of the city, covers an area of 22 sq.km. The park, which is scheduled for completion
by 2016, will concentrate on the manufacturing of various hi-tech petrochemical
products. So far, multinationals
such as BASF from Germany and NPU from Japan have already planned to
set up subsidiaries in the park.
Services Sector
Shanghai has
been chosen as one of the cities to spearhead reforms in the tertiary
sector covering banking, retailing, finance, trading and property
development. At present, there are more than 6,000
number of contracted foreign investment projects in the tertiary sector,
operating in areas such as retailing, banking, insurance, trading, shipping
and property development.
Shanghai is
an important financial centre of China.
Its financial sector expanded by 16% per year on average from
1990-1999 and its share of Shanghai¡¦s GDP rose from 10% in 1990 to
20% in 1999. In 1991, the Chinese government authorized
foreign banks to open branches in Shanghai for the first time since
1949. Banks from Japan,
the US, France and Hong Kong have set up representative offices in Shanghai
to participate in trade finance business.
Shanghai has more than 50 foreign-funded banks and about 24 of
them have licenses to carry out Renminbi business.
Tourism
Shanghai attracted
millions of shopping tourists every year. An "Old Shanghai Street" has been opened to boost
tourism industry. The street
is divided into two sections -- the eastern section is based on the
style of old Shanghai in the early years of this century and the western
section which features architectural styles characteristic of the Ming
and Qing dynasties (1368-1911).
In 2000, over 1.8 million overseas tourists (+9.5%) visited Shanghai
and generated total revenue of US$1.6 billion (+18.3%).
Shanghai also received over 78 million domestic tourist in 2000
(+4.7%) and generated a total revenue of Rmb77.5 billion (+7.7%).
Consumer Market
Shanghai is traditionally an important retail and distribution centre in
China. Its retail sales
of consumer goods rose by 8.3% to Rmb172 billion in 2000. Major consumer centres include Shanghai
No. 1 Department Store and Shanghai
Hualian. Nanjing Road is
called the "The First Chinese Commercial Street" which is
popular for shopping.
Foreign Trade
In 2000, Shanghai's exports grew by 34.7% to US$24.6 billion, ranked the
third of the country's total.
Major exports included instruments, machinery and electronic
exports, agricultural products, textiles and garments, and light industrial
products. Major export
markets were Japan, the US, Hong Kong, Germany and the UK.
Imports also increased by 52.1% to US$30.1 billion in 2000. Major imports included garment, automobile
parts, electronic parts, etc.
Major import sources were Japan, the US, Germany, Taiwan and
the Republic of Korea.
Apart from maintaining the trading partners such as Hong Kong, the US,
the EU and Japan, the city will focus on expanding markets in Western
Asia, the Middle East, Latin America and Russia as well.
Foreign Investment
In 2000, Shanghai approved 1,814 foreign-invested projects (+23.2%) with
contracted foreign investment of US$6.4 billion (+55.1%). Actually utilised capital was US$3.2 billion
(+11.4%) in the year. Hong
Kong was the largest foreign investor in Shanghai. In 1999, the city approved 347 HK-invested projects with contractual
and actual foreign captial of US$1.1 billion and US$1.2 billion respectively.
Accumulated to end-1999, the city approved 7,787 HK-invested
projects with contractual and actual utilized foreign capital of U$13
billion and US$11.7 billion respectively.
Other major foreign investments came from the US, Japan, Taiwan,
Singapore and the UK.
Shanghai will open its private sector to overseas investment and overseas
investors are allowed to set up joint ventures with all "standardized"
private firms. The new
policy specifically calls for the equal treatment of private firms and
state-owned enterprises in establishing joint or cooperative ventures
with overseas partners. In
the past, foreign investors are only allowed to make partner with state-
or collectively-owned enterprises and JVs have been a mainstream of
overseas investment in China since market reforms first held in early
1980s.
The Shanghai Chongming Green Food Zone, China's first state-level pollution-free
food production center, is open for both domestic and overseas investors.
The 32,000-hectare zone is located on Chongming Island, China's
third largest island at the mouth of the Yangtze River.
The zone is divided into six parts, concentrating on rice, special
aquatic products, vegetables, food processing, eco-agriculture and breeding
of fine strains.
To reform the existing processing trade system and to go in line with international
practice, the Chinese government has decided to set up export processing
zones in 15 pilot cities. Songjiang
of Shanghai is selected as one of the cities in this trial program.
Export processing zones are special restricted areas administered
by the Customs. Goods moving in and out of the zones are
regarded as imports and exports.
Enterprises involving in export processing, storage and transportation
are allowed to be set up in the zones.
Major Economic & Technological
Development Zones (ETDZs)
1.
Pudong New Area
The Pudong New Area is the focal point of China's economic development
strategy for the 1990s. It
is destined to become a hi-tech industrial zone and an international
financial and trade centre. Pudong
is a delta of 350 sq. km located between the Huangpu River and the Yangtze
River. In coming years,
Pudong aims at becoming an international center of finance, trade, tourism,
and conference and exhibition.
In the first quarter of 2001, the real economy of Pudong grew
by 15.6% after a 16.5% growth in 2000.
Pudong is divided into three zones, each with a different emphasis: free
trade in Waigaoqiao, finance in Lujiazui and export processing in Jinqiao.
In 2000, Pudong approved 693 foreign-invested projects (+47.4%) with contractual
foreign capital of US$2.9 billion (+170%). Hong Kong was one of the major investors
in the area. Its investment
mainly engaged in services sector such as warehouse and distribution,
transportation, finance, advertising, property management and infrastructure
development. Among those industries, investment in the property market
was the largest.
In Jan-Jun 2001, Pudong reported a 26% rise of foreign trade to reach US$14.3 billion. Imports rose 22.8% to US$8.7 billion and
exports grew by 31.54% to US$5.5 billion. Japan, US and Hong Kong were among the major trading partners
of Pudong.
Shanghai General Motors Corp., a China-US joint venture has established
an automobiles technology centre in Pudong. Major Chinese enterprises such as Chunlan Group in Jiangsu
and Shanshan Group in Zhejiang, have also established their technological
and information centres in Pudong.
IBM, HP, Intel, Lucent and AMKOR, a major chip assembler, have
also set up operations in the free trade zone within Pudong.
In order to speed up Pudong's development, the Shanghai authorities are
now empowered to approve both Chinese and foreign-funded enterprises
that are engaged in transit trade in the Waigaoqiao Bonded Zone. Besides, the Shanghai authorities are
able to grant import and export rights to large and medium-sized state-owned
enterprises in Pudong, to approve non-manufacturing investment projects,
and to approve manufacturing projects with investment not exceeding
Rmb200 million.
The Waigaoqiao Bonded Zone was officially opened in March 1992, covering
a planned area of 10 sq. km.
All enterprises in the bonded zone will enjoy import-export rights,
free movement of goods into and out of the zone, and exemption from
licenses and duties for products that are exported.
In Jan-May 2001, exports of the bonded zone rose by 129.6% to US$1.1 billion
and imports grew by 17.3% to US$2.4 billion. In 2000, the zone approved 181 foreing-invested projects (+26.6%)
with total contracted investment amounted to US$547 million (+14.8%).
With funding from the government and Hong Kong investors, Shanghai is undertaking
the third and fourth phases of the construction plan of Waigaoqiao Deep-Water
Port. In 2000, the
port processed 9.6 million tons of cargo (+25.1%) and the number of
containers handled grew by 30.4% to 1.21 million TEU. With the completion of second phase, the port now has a handling
capacity up to 2 million TEU a year.
2.
Other Economic Development Zones
The Shanghai government has also set up three economic and technological
development zones in Minghan, Hongqiao and Caohejing districts.
Minghang zone is located at the southwest
of the city proper. The
zone has developed an industrial base comprising heavy machinery and
prefabricated components for civil construction.
Hongqiao zone is located at the western part of Shanghai. The zone is designated to become a centre
of foreign trade, finance and other business services. The zone has taken a lead in the leasing
of land-use rights to foreign investors.
Caohejing zone is located
at the southwestern part of Shanghai.
The zone is intended to become a hi-tech industrial park, producing
micro-electronics, optic-fiber communication, computer software and
biochemistry.
Economic Indicators
|
|
1999
|
2000
|
|
Economic Indicators
|
Value
|
Growth
|
Value
|
Growth
|
|
|
|
(%, y-o-y)
|
|
(%, y-o-y)
|
|
Area
(sq km)
|
6,340.5
|
--
|
|
--
|
|
Population
(mn)
|
14.7
|
0.7
|
16.7
#
|
|
|
Gross
Domestic Product (RMB bn)
|
403.5
|
9.4*
|
455.1
|
10.8*
|
|
Per
Capita GDP (RMB)
|
30,805
|
9.1
|
34,600
|
12.3
|
|
Income
Per Capita
|
|
|
|
|
|
-
urban (RMB)
|
10,932
|
24.5
|
11,718
|
7.2
|
|
-
rural (RMB)
|
5,409
|
-1.9
|
5,596
|
3.5
|
|
Fixed-assets
Investment (RMB bn)
|
185.6
|
-5.6
|
186.1
|
0.2
|
|
Added
Value Output
|
|
|
|
|
|
-
primary industry (RMB bn)
|
8.0
|
0.1
|
8.2
|
2.5
|
|
-
secondary industry (RMB bn)
|
195.4
|
5.8
|
218.7
|
11.9
|
|
-
tertiary industry (RMB bn)
|
200.1
|
13.6
|
228.3
|
14.1
|
|
Retail
Sales (RMB bn)
|
159.0
|
8.1
|
172.2
|
8.3
|
|
Inflation
(Consumer Price Index, %)
|
-1.5
|
|
2.5
|
|
|
Exports
(US$ bn)
|
18.3
|
17.0
|
24.6
|
34.7
|
|
-
by FIEs (US$ bn)
|
10.4
|
26.7
|
14.3
|
37.8
|
|
Imports
(US$ bn)
|
19.8
|
26.9
|
30.1
|
52.1
|
|
-
by FIEs (US$ bn)
|
12.3
|
22.6
|
19.1
|
55.4
|
|
Foreign
Direct Investment
|
|
|
|
|
|
-
number of projects
|
1,472
|
-1.2
|
1,814
|
23.2
|
|
-
contracted amount (US$ bn)
|
4.1
|
-29.8
|
6.4
|
55.1
|
|
-
utilized amount (US$ bn)
|
2.8
|
-21.2
|
3.2
|
11.4
|
Notes: *In
Renminbi real terms
# Latest full
population census figure, 1999 figure was estimation based on previous
census.
Sources: Statistical Yearbook of
Shanghai and State Statistical Bureau
UK
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