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 1992 through 2006, total GDP increased by two digitals. By 2006, the GDP of Shanghai had reached RMB 1029.7 billion yuan. According to an expectation, by 2007, per capita GDP in Shanghai will be USD7500. At the same time, the rate of unemployment will be below 3%-5% and the ratio of inflation below 2%-4%.

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. Compared with other major foreign investment cities, Shanghai puts its priorities in industrial and service sectors. Six key industries are IT, motor, petrochemicals, fine chemicals, complete set of equipment, bio-pharmaceuticals.
Shanghai boasts obvious advantages in many industrial fields and strong capability in processing. 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. Finance will be core industry, 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.

Foreign Direct Investment (FDI)
In 2006, Shanghai’s FDI accounted for 29% of total fixed assets input.
(1) New Features and Trend of FDI Utility in Shanghai
With China’s accession to WTO, Shanghai’s attraction to foreign capital will be more and more stronger, and the investment in future will show new features and trends:
1. Industry structure, Shanghai will focus on high tech industry and foreign-oriented economy, and proportion of tertiary industry will be greater, at the mean time Shanghai will take concrete actions to encourage foreign investment in the 6-pillar industry.
2. Ways of investment. Shanghai welcomes WFOEs and foreign holding companies within permitted fields, and encourage investors using new ways like M & A to involve in the reform and restructuring of state-owned companies.
3. As for investment strategy, Shanghai encourages the investment in regional headquarters, R&D centers and purchasing centers, and hope the foreign investment can be more systematic and of more globally strategic significance.
(2) Economic Development Zones at different levels
Shanghai has planned some specialized economic development zones of all kinds for foreign investors.
Different development zones in Shanghai boast different features and preferential policies. Pudong New Area is the biggest development zone in Shanghai. Financial and trade development zones include Lujiazui Financial and Trade Zone and Hongqiao Economic and Technological Development Zone, export processing zones include Songjiang and Jinqiao Export Processing Zones. What’s more, the main industrial zones in the suburban area are: Jiading Industrial Zone, Baoshan Urban Industrial Zone, Chongming Industrial Zone, Qingpu Industrial Zone, Songjiang Industrial Zone, Xinzhuang Industry Park, Kangqiao Industrial Zone, Shanghai Comprehensive Industrial Zone and Jinshanzui Industrial Zone. A lot of world-famous companies have made investment in these zones.

Main Targets of Shanghai's 11th Five-Year Plan
Facing both opportunities and challenges in the 21st century, Shanghai has already set its middle- and long-term development goals: To build the city into one of the economic, finance, trade and transport centers in the world and a socialist modern international metropolis and by 2020.
To keep the social and economic growth on a fast and sustained pace, make the World Expo 2010 successful, splendid and memorable, and establish a framework for an international center of economy, finance, trade and transport, make major progress toward building the city into a socialist modern international metropolis, lay a solid foundation for the city’s sustained socioeconomic growth during 2011-2020.
To readjust and optimize the economic structure; continuously improve the city level of information utilization, market-oriented operation and the rule by law; bring into play the comprehensive advantages of an international metropolis; and sharpen the city's comprehensive competitive edge.
The detailed targets include:
-- To keep economic growth at a sustained, fast and healthy rate;
-- To make breakthroughs in carrying out the policy of developing the city through science and education;
-- To improve remarkably the city’s comprehensive services;
-- To further improve citizens’ living quality; and
-- To lead the country in building an environment that is more dynamic, more open and more geared up to the international practices.

The Main Indexes of Shanghai's 11th Five-Year Plan
-- To maintain an average yearly GDP growth rate at above 9% with the city's GDP reaching 1.5 trillion yuan (in terms of comparable prices) by 2010;
-- To increase the percentage of the added value of the tertiary sector in the city GDP to about 50% by 2010; the figure for urban areas should rise to about 80%;
-- To increase the percentage of the added value of the non-public sector in the city’s GDP to about 50% by 2010;
-- To cut the energy consumption in unit GDP production to about 20% by 2010;
-- To control the urban unemployment rate within 4.5% by 2010, and make 98% of local citizens enjoy social security benefits;
-- To increase the average life expectancy of citizens to above 80 years by 2010; the social security index should be kept at at least100;
-- To keep the percentage of spending on R&D projects in the city GDP at above 2.8% by 2010;
-- To make sure new work force has received at least an average 14.5 years of education by 2010;
-- To boost the city's port trade to 550 billion US dollars, the containers handled to 24 million TEUs, the number of passengers crossing local airports to above 80 million by 2010;
-- To increase the Internet penetration to about 68% by 2010;
-- To keep the spending on environment protection projects at 3% of the city GDP; more than 80% of household and industrial waste are treated before being discharged into local rivers, 80% of urban sewage is treated, and 85% of the year is rated good-air days by 2010.

Related Information