Shanghai is an important economic, financial, trade and shipping center in China. It contributes greatly to the whole nation's economic structure and the development of society.
Due to its excellent port, Shanghai has been a leading power of China's economic and trade development since ancient times. Since China's reform in 1978, Shanghai has had a more open environment and enjoys faster development especially since 2000. Shanghai's economy has increased by over 10% for 15 consecutive years.
Taking up only 0.06% of the country's land area, Shanghai now generates about 8.3% of China's gross industrial output value, 10% of its ports' cargo-throughput, 25% of the total value of the country's imports and exports and 12.5% of the total revenue of China.
Agriculture
The government of Shanghai knows that the importance of agriculture cannot
be overemphasized, so it always tries to develop planting, stockbreeding,
forestry and fisheries. Shanghai's advantageous geographical location
endows it with favorable conditions for agricultural development. Despite
the comparative shortage of arable land, moderate temperature, sunlight,
rainfall and fertile soil make Shanghai famous for its high yield of
agricultural production in China. Generally Shanghai can produce enough
grain, meat, eggs, milk, vegetable and fruit for consumers in the city
and suburbs. Some agricultural products are sold to neighboring areas
or even exported to foreign countries.
Shanghai has many modern agricultural zones. These includes 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. These urban agricultural zones attract a lot of foreign investment, advanced technologies and agricultural professionals.
In addition convenient transportation provides various fast links between the city zone and the suburbs which strengthen the cooperation of industry and agriculture. Shanghai has established a system of distinctively export-oriented agriculture. As a result, farmers' incomes have increased.
Industry and Architectural Industry
The great leap of Shanghai's economy benefited from the amazingly fast
development of industry. In the past Shanghai gave priority to advanced
manufacturing industries and promoted the construction of its industrial
base and large projects. The manufacture of automobiles, electronic
and communication equipment, petrochemicals, steel products, equipment
assemblies and biomedicine had once been promoted as the six pillar-industries
of Shanghai.
Shanghai still pays much attention to its industry. There are many 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.
The architectural industry has also developed quickly in Shanghai. The construction of airports, railways, highways, expressways, subways, maglev lines, ports, bridges and tunnels forms a convenient transportation network. Various commercial buildings, residential buildings and other infrastructure in Shanghai create an open and pleasant environment for investment and further development.
Other Industries
Other booming industries, especially the service industries, contribute a lot
to Shanghai's economy. In recent years the financial market system has gradually
matured, providing citizens and tourists with improved services. Domestic
and international trade also has developed quickly. The Lujiazui Financial
and Trade Zone in Pudong is now becoming more and more influential. It brings
together many financial and commercial institutions such as stock exchanges,
securities companies and insurance companies, both Chinese and foreign.
Transportation, especially the subway system in Shanghai, is developing vigorously, providing sufficient transport capability and good services. The prosperous postal services, communications and information industries facilitate daily communication among people.
Various other service industries are booming in Shanghai, so that the living standards of its citizens are improved. These include catering, hotel, entertainment, tourism, real estate, education, culture, health, physical training, TV and broadcast, consultation and information services, technology services, public utilities and social welfare.
Shanghainese Economy: Present & Future
The good national policy of reform and opening up sped up Shanghai's development.
The city's economic growth has maintained a very high level for many years.
The income of Shanghai locals has increased and the standard of living improved.
However, underlying problems can not be ignored. The growth of Shanghai's economy is too dependent on manufacturing, especially heavy industry, which usually demands much more land and energy, often seriously polluting the environment. Other business segments such as the service industries occupy only a small portion of the industrial structure of Shanghai. If the situation continues, it will unbalance or even damage Shanghai's economy.
To solve the problem, Shanghai will continue to make efforts to transform the industrial structure and promote the advancement of service industries. Shanghai has selected its six new pillar-industries: information industry, financial services, commerce and trade, automobile manufacture, equipment assemblies and real estate. It is obvious that Shanghai tends to accelerate the high-tech and service industries.
In this way Shanghai can keep a balance between its economy and the environment. Moreover many Shanghainese enterprises show increasing creativity and innovation in their development. More and more famous multinational corporations have set up their Asia Pacific headquarters in Shanghai. With the advent of World Expo 2010, Shanghai will grow into an international metropolis to better serve and lead the economic development of the Yangtze River Delta, the Yangtze watershed and even all of China.