Economy of Shanghai
Shanghai is one of China's old industrial bases. The reform over the past 20 years has injected the city with new vitality. In 1997,the city's GDP exceeded 336 billion yuan (US$40.5 billion) with the per capita GDP reaching US$3,000. Steel, telecommunications, automobiles, power production equipment, petrochemicals and electric appliances have become Shanghai's six pillar industries. The city produced 230,000 cars in 1997, while its steel output is the largest in the country. China's largest petrochemical complex is also located here.
The city's service industry now represents a growing part of Shanghai's economy. Finance and insurance, commerce, real estate, tourism and information represent the key sectors for development. The city's goal is to turn Shanghai into a regional economic and trade centre. The Shanghai Stock Exchange and various specialized markets have developed rapidly in Shanghai, which also has the country's largest foreign exchange trading centre as well as many foreign banks and insurance companies.
Opening Policy
The city has attracted more than 20,630 direct foreign investment projects, nearly 300 of which were invested by big-name multinationals. More than half of the world's top 100 industrial companies have invested in Shanghai.
The city's financial industry has been opening increasingly wider for overseas investors. By the end of 1997, there were 51 foreign-funded financial institutions and 162 financial representative offices in the city from more than 20 countries and regions around the world. Shanghai leads the country in the number and variety of foreign financial institutions situated in the city. Today, nine foreign banks, including Citibank of the United States, Hongkong and Shanghai Banking Corp, Bank of Tokyo-Mitsubishi and Industrial Bank of Japan, have moved to Pudong and are authorized to handle Chinese currency business. This is another lead that has been taken by the city in opening the country's financial industry to overseas investors.
By the end of 1997, 17,494 overseas-funded venture were operating in Shanghai and most of them reported good economic returns thanks to sound management and development of the product market. in 1997, these enterprises achieved total sales of 283.216 billion yuan, pre-tax profits of 13.429 billion yuan and export earnings of 5.2 billion US dollars. They represent an increase of 36.7%, 10.4% and 29.8% over 1996, respectively.
