Shanghai is often regarded as the center of finance and trade in mainland China. Modern development began with the economic reforms in 1992, a decade later than many of the Southern Chinese provinces, but since then Shanghai quickly overtook those provinces and maintained its role as the business center in mainland China. Shanghai also hosts the largest share market in mainland China. Shanghai has one of the world's busiest ports. Since 2005, Shanghai has ranked first of the world's busiest cargo ports throughout, handling a total of 560 million tons of cargo in 2007. Shanghai container traffic has surpassed Hong Kong to become the second busiest port in the world, behind Singapore.
In order to host The 2010 World Expo, Shanghai will invest RMB 28.6 billion in total, 18 billion in construction and 10.6 billion in operation, creating huge business opportunities.
| Economic Indicators |
2007 |
Jan - Aug 2008 |
| Value |
Growth (%, y-o-y) |
Value |
Growth (%, y-o-y) |
| Gross Domestic Product (RMB bn) |
1,218.9 |
14.31 |
653.13 |
10.31 |
| Per Capita GDP |
66,367 |
11.81 |
/ |
/ |
| Added Value Output |
/ |
/ |
/ |
/ |
| - Primary industry (RMB bn) |
10.2 |
2.01 |
3.43 |
-1.61 |
| - Secondary industry (RMB bn) |
567.9 |
11.51 |
307.23 |
11.51 |
| - Tertiary industry (RMB bn) |
640.9 |
17.11 |
342.53 |
9.31 |
| Value-added Industrial Output 2 (RMB bn) |
525.1 |
11.61 |
377.1 |
11.91 |
| Fixed-assets Investment (RMB bn) |
445.9 |
13.6 |
282.0 |
4.7 |
| Retail Sales (RMB bn) |
384.8 |
14.5 |
296.3 |
17.2 |
| Inflation (Consumer Price Index, %) |
/ |
3.2 |
/ |
6.9 |
| Exports (US$ bn) |
143.9 |
26.7 |
112.1 |
23.9 |
| - By FIEs (US$ bn) |
97.8 |
28.7 |
75.1 |
24.1 |
| Imports (US$ bn) |
139.0 |
22.0 |
105.5 |
19.2 |
| - By FIEs (US$ bn) |
95.4 |
23.0 |
72.2 |
19.9 |
| Utilized Foreign Direct Investment(US$ bn) |
7.9 |
11.4 |
6.8 |
17.9 |
Notes:
1 In real terms
2 For all state-owned enterprises and other forms with annual sales over RMB 5 million
3 First half of 2008
Sources: Shanghai Statistical Yearbook 2008, China's customs statistics 8.2008
In 2007, 52.6% of Shanghai's GDP was attributed to services industries. The top 3 largest industries were: financial services, retail and wholesale and real estates. Shanghai will focus on the development of financial services, logistics and cultural industries.
Sources: Shanghai Statistical Yearbook 2008
Shanghai has been undergoing major industrial restructuring over the last decade. The share of low value-added manufacturing has decreased significantly, particularly the textile and heavy-equipment manufacturing industries as many of them have relocated to outside Shanghai.
Shanghai is a major tourist destination. The 2010 Shanghai World Expo is expected to entertain some 75 million foreign visitors.
| |
2000 |
2007 |
2008 |
Number of Foreign Tourists through Shanghai Custom
(10,000 persons-times). |
181.4 |
665.59 |
640.37 |
Foreign Exchange Earnings from International Tourism
(100 million USD) |
16.13 |
47.37 |
50.27 |
The leading overseas markets in 2007 were the US, Japan, Hong Kong, Germany and South Korea. Major export items are machinery and transport equipment and raw material products etc.
Japan is the leading source of imports, followed by South Korea, the US and Taiwan. Major imports included machinery and transport equipment, raw material products and chemicals and related products etc. In 2007, Shanghai exported US$20.7 billion to Hong Kong and imported US$2.0 billion from Hong Kong.
Shanghai is a major destination for foreign direct investment. About 300 of the world's top 500 enterprises have invested in Shanghai, such as Delph, GE, Mitsubishi, Itochu, Siemens and Hitachi etc.
In 2007, Shanghai accounted for 9.5% of China's total utilized FDI. The city's cosmopolitan character, sophisticated and affluent consumers, and highly educated and skilled labor force make it highly attractive to overseas investors.
Of the total utilised FDI in Shanghai in 2007, secondary industry accounted for 32.8% and tertiary industry accounted for 67.1%. In recent years, thanks to liberalizations in the services sector, foreign investment in the services sector has increased more quickly than in the secondary sector. Utilised FDI in the services sector in 2007 was up 20.5% to US$ 5.3 billion. Growth of investments in trading, logistics, advertising and financial services have accelerated.
Hong Kong is the largest source of overseas investment in Shanghai. In 2007, Hong Kong investors signed 1,141 contracts with contracted amount of US$5.5 billion, and the utilized FDI invested by Hong Kong reached US$2 billion. Hong Kong's investments were mainly involved in infrastructure, real estates, banking, and food catering and retail trade. Other major investors came from Japan, the US, and Germany.
Inquiry Basket (
