Shanghai

Shanghai , or Hu for short, is located on the estuary of Yangtze River of China. The city covers an area of 5,800 square kilometres (2,239 square miles) and represents the beating financial heart of modern-day China . With a largely seasonal population of between 16 – 22 million residents, Shanghai is a internationally-renown metropolis.

Economic Overview

Shanghai has grown rapidly to become the financial capital of China and is now central to the nation's economic structure and societal development.

With excellent port facilities, Shanghai has always been integral to Chinese economic development since ancient times. With the economic reforms after 1978, Shanghai has enjoyed a more open economic environment enabling faster development. The Shanghai economy has grown by a rate of over 10% per annum, for 15 consecutive years.

Despite occupying only 0.06% of the China land area, Shanghai generates up to 8.3% of nation's gross industrial output value, carries 10% of its port cargo, 25% of the total value of the country's imports and exports, and 12.5% of the total revenue of China . Shanghai truly is the heart of the Chinese economy.

Agriculture

Despite a comparative shortage of arable land, Shanghai has still remained a significant contributor to the agricultural market of China . A moderate temperature, sunlight, rainfall and fertile soil make Shanghai famous for its high yields of agricultural production in China . Despite huge population growth, the surrounding semi-rural areas of Shanghai have remained able to produce enough grain, meat, eggs, milk, vegetable and fruit to supply consumers in the city and suburbs.

In a sign that the Shanghai Municipal Government still regards the agricultural industry as important to the economic welfare of the city, Shanghai has instituted a variety of modern agricultural zones. These zones include Sunqiao Modern Agriculture Development Zone in Pudong New Area, Fengxian Modern Agriculture Zone in the south Fengxian District and many others in the suburbs including the districts of Baoshan, Jiading, Minhang, Songjiang, Jinshan and Nanhui as well as Chongming County . Such semi-urban agricultural zones are able to attract significant foreign investment, advanced technologies and agricultural professionals.

Industry

The driving force in the sustained growth of the Shanghai economy has been the staggeringly fast development of industry. Previously, Shanghai has given priority to advanced manufacturing industries and promoted the construction of its industrial base and large projects. Industries that have received key support from municipal government have included automobiles, electronic and communication equipment, petrochemicals, steel products, equipment assemblies and biomedicine.

Despite a lesser emphasis today, Shanghai still retains significant industrial capacity. There remain a multitude of industrial areas in Shanghai , such as Jinqiao Export Processing Zone in Pudong New Area, Zhangjiang Hi-Tech Park and some other processing zones in Jiading, Qingpu, Songjiang and Minhang Districts. As a result the city's industrial production continues to grow rapidly. There is no doubt that industry makes a lot of economic profit; however, it is much more costly to the environment.

Service Industries

Of increasing importance to the future development of Shanghai , are the service industries. During recent years the financial market system has steadily matured, providing citizens and tourists with improved services and enabling a better standard of life. Domestic and international trade has developed quickly bringing with it an increasingly multicultural city. The Lujiazui Financial and Trade Zone in Pudong has established itself as the financial services capital of the country. The advanced infrastructure and central location has attracted a huge variety of financial and commercial institutions such as stock exchanges, securities companies and insurance companies, from China and overseas.

Other service industries have also thrived in recent years. Transportation, most visible with the growing subway system in Shanghai , is developing vigorously and providing sufficient transport capability for a massive population. The postal services, communications and information industries are facilitating daily communication and creating significant economic wealth. Signs of this wealth are evident in other areas of service industry growth, namely catering, hotel services, entertainment, tourism, real estate, education, culture, health, physical training, TV and broadcast, consultation and information services, technology services, public utilities and social welfare.

The Future of the Shanghai Economy

The income of Shanghai locals has increased and the standard of living improved, however there are concerns over the long-term viability of this growth. High levels of economic growth in Shanghai has been maintained for many years, however some analysts now believe too much reliance has been placed on heavy industry. Alternate business segments such as the service industries comprise only a small portion of the industrial structure of Shanghai . This situation can compromise the future of the Shanghai economy.

In efforts to solve the problem, the Shanghai Municipal Government has sought to transform the industrial structure and promote the advancement of service industries. New industries have been designated as focus areas, including the information industry, financial services, commerce and trade, automobile manufacture, equipment assemblies and real estate. By focussing on these key industries, administrators hope that Shanghai can keep a balance between the economy and the environment.

Whether Shanghai possesses the level of economic resources to complete this innovation remains to be seen. Many Shanghainese enterprises have shown increasing levels of creativity and innovation in their development. In a positive sign, growing numbers of multinational corporations are establishing their Asia-Pacific headquarters in Shanghai . With the World Expo in Shanghai in 2010, Shanghai the city has a chance to show that its future remains bright.