China Market Guide

Shanghai
(Municipality)

(1) Shanghai - the most opening-up gateway in China

Shanghai is situated at 31'14" north latitude and 121'29" east longitude. Bordering on Jiangsu and Zhejiang Provinces on the west, Shanghai is washed by the East China Sea on the east and Hangzhou Bay on the south. North of the city, the Yangtze River pours into the East China Sea. It also assumes the central location along China's coastline. Thanks to its advantageous geographic location, Shanghai has today become an excellent transportation hub, boasting easy accesses to the broad hinterland. There are 18 districts and 1 county in Shanghai. It holds 9 state development parks, which are Caohejing Hi-Tech Park, Hongqiao Economic and Technological Development Park, Waigaoqiao Free Trade Zone, Zhangjiang Hi-Tech Park, Jinqiao Export Processing Zone, Lujiazui Finance and Trade Zone, Minhang Economic and Technological Development Park, Songjiang Export Processing Zone and Shanghai Chemical Industry Park.

At early years of the 20th century, Shanghai was the one of the most attractive cities in the Far East. Since the middle and late years of the century, especially 1970s, Shanghai had gotten the attentions for the international investment. Thanks to its advantages and steady improvement in market environment, Shanghai has become a highlight for lots of leading investors since entering the 21st century.

(2) The fast-growing comprehensive economic capacity

In the past years, Shanghai keeps its constantly fast growth in GDP. Last year, Shanghai's GDP reached RMB 540 billion, representing 10.9% growth over the previous year, the per capita GDP reached USD4909, Kept two digit growth rate since 1992. Also, Shanghai made more improvement of its central city function in international trade, the port import and export volume reached USD142.5 billion, accounting for one fourth of the national total. Shanghai is the first largest air transport center in China. Shanghai harbor is third largest harbor in terms of throughput in the world and is the fifth largest container terminal globally.

The value of Shanghai foreign trade reached USD72.65 billion, rising by 19.3%, among which the US$40.6 billion was contributed from import representing 22% in growth, and USD 32.05 billion contributed by export represented 16% in growth.

(3) The solid modern industrial foundation and the complete financial market system

Shanghai holds a complete industrial system with strongly complete processing capacity. With the view of fastening to upgrade the industrial structure, during the Tenth Five Years period, Shanghai will focus on the development of 6 pillar industries with high value added and wide coverage which includes information, finance, commerce & trade, automobile, complete sets equipment and real estate. Shanghai plans to develop these pillar industries into a new start point for improving four new industries: bio-pharmaceutical, new material, environment protection and modern logistic as well as for the further development of petrochemical and steel industries. During the Tenth Five Years period, Shanghai will pave the way to establish the biggest products bases in China in four fields of e-telecommunication, automobile fine steel and petrochemical & fine chemical. For this purpose, purpose, Shanghai's industrial investment will reach RMB 400 billion no 450 billion, among which the 80% of the investment will be poured into the 6 pillar industries.

(4) Complete and satisfactory financial market system

Shanghai's finance industry has been developing healthily in recent years. So far, a fairly complete financial market system has been established and lots of foreign invested financial institutes have been established. By the end of lots of foreign invested financial institutes have been established. By the end of last year, there are 3300 various financial institutes set in Shanghai, including a number of foreign invested financial institutions. Furthermore, Shanghai will make further open its financial market in the coming years.

(5) Sound city infrastructure system

Shanghai holds a sound city infrastructure system with sufficient supplies of water, electricity and gas. Because of the hub position for the cargo transportations, Shanghai enjoys convenient communications with all parts of the world by regular lines. There are two international airports in Shanghai: Pudong and Hongqiao. In the recent years, Shanghai is fastening the construction to develop the city as one of the international center of air harbor, information harbor and shipping. For further forming a modern and space transportation network, Shanghai has accomplished the construction of magnetic suspension railway, which is operating on trial basis.

(6) Rich human resource

Shanghai is one of the cities with richest human resources and advantage talent in China. By the end of last year, there are 45 universities, 13 senior professional technical institutes and 31 continuous colleges in Shanghai. In addition, Shanghai human resource market attracts lots of talents coming to Shanghai annually, which makes Shanghai enjoy competitive talent costs. Comparing with the US, the cost of the R&D project is only about 1/5 of that in the US. Therefore, the companies like GM of the US, Volkswagen of Germany and Bell of Belgium set up their R&D centers in Shanghai one after another.

(7) Satisfactory office and living environments

The foreigners and overseas staff who work in Shanghai can easily find various apartments meeting their various demands. In the CBD areas of Shanghai, the office buildings with complete modern facilities are very suitable for the needs of representative Office and SME. The average cost is about US$0.3-1.0 per day per square meter by rent. Most of the office building locate in the areas of Hongqiao Economic and Technological Development Zone, Pudong Lujiazui Finance and Trade Zone, Nanjin Road, Huaihai Road,and etc.

(8) The planned industry zones with characteristics

In recent years, Shanghai focuses on promoting the investment in four areas, to guide the foreign investment gathering in the planned areas.

Zhangjiang Hi-Tech Park is the key part of the eastern area, which is composed to Shanghai micro-electron industrial base with Pudong Micro-electron Industry Belt, Caohejing Hi-Tech Park and Songjiang Export Processing Zone. A lot of integrated circuit end product projects have been located in the base, i.e., Hongmao Micro-electronics Corporation, Tailong Semiconductor (Shanghai) Corporation. Weiyu Technological Testing and Sealing (Shanghai) Corporation and Intel Products (Shanghai) Co., Ltd. The investments build the foundation for Shanghai as the integrated circuit manufacture base in China.

Shanghai Chemical Industry Park is the key role in the southern area. A lot of multi-national chemical giants have made their investments in the area like Basf Chemicals Corporation, Bayer (Shanghai) Polymers Corporation, Shanghai Secco Petro-chemicals Corporation and Shanghai Michilin-Huili Tyre Corporation. The area will be built into a world leading chemical industrial base by integrating the public facilities with auxiliary ones, logistic with transportation, management with service, and by integral environment protection.

Anting is the center of the western areas, which will be developed into a modern automobile industrial park with manufacturing of cars, fittings & parts, exhibition and trade & marketing.

Shanghai BaoSteel Group is the key role of the northern area. The area will be developed, by the ways of reform and attracting foreign in vestment, into a giant steel complex integrated by steel & iron smelting, founding, rolling and deep processing products.

(9) Well-founded state and city parks

So far, the state and city parks have been established in Shanghai with various focuses. The state parks are: Caohejing Hi-Tech Park, Hongqiao Economic and Technological Development Zone, Waigaoqiao Free Trade Zone, Zhangjiang Hi-Tech Park, Jinqiao Export Processing Zone, Lujiazui Finance and Trade Zone, Minhang Economic and Technological development Zone, Songjiang Export Processing Zone and Shanghai Chemical Industry Park. The city parks are: Songjiang Industrial Zone, Jiading Industrial Park, Kangqiao Industrial Zone, Xinzhuang Industrial Park, Qingpu Industrial Zone, the Comprehensive Industrial Zone, Baoshan Industrial Zone, Jinshanzui Industrial Zone and Chongming Industrial Zone.

(10) World well-known cultural relics and sightseeing spots

As a historic city, by the end of 2001, there have been 16 state key protective relics, 110 city key protection relics, 21 historic memorial spots and 15 protective spots in shanghai. Among the relics and spots, the more than 1000-year-old Longhua Ancient Temple, the Three Kingdoms period built-in Jing'an Ancient Temple, the worldwide Known jade Buddha Temple, the famous eastern China's Garden Yuyuan, as well as jiading Confucian Temple, Songjiang Square Pagoda and Songjiang Zuibai Pond are the representatives, retaining the historic relics and preserving the typical Chinese garden elites, which originated in the Dynasties of Tand, Song, Yuan, Ming and Qing.

Since the beginning of 1990s, many well-known functional buildings have been erected in succession to form a fascinating modern city's scenery, as well as to become the new sightseeing in Shanghai. The buildings are: the People's Square named the city green lung, the Oriental Pearl Broadcasting & Television Tower creating 10 world records, the Jinmao Mansion the highest building in China, Nanjin Road Pedestrian Street, the Shanghai Museum, the Shanghai Grand Theater and the Shanghai City Plan Exhibition Hall, etc.