Shanghai to develop as an international trade center

The commerce commission of China's most cosmopolitan city talks about the ambition to become a global trading hub center, Wang Hongyi reports.

Shanghai has vowed to turn itself into an international trade center by 2020 with a series of upgraded efforts.

The Shanghai municipal government recently announced its plan to achieve this during the 13th Five-Year Plan (2016-20). The goal is to become an international trade center with both domestic and international market resources allocation functions that aligns with Chinese economic and trade status. Meanwhile, the system will align with the high standards of international investment and trade rules. By that date, a modern market system will be formed so that commodities and ideas can achieve free flowing and equal exchange.

Shanghai's international trade has consistently been the highest across China. By the end of 2015, growth of the service trade as a proportion of international trade in Shanghai exceeded 30 percent, which is above the international average level, according to Shang Yuying, director of Shanghai Municipal Commission of Commerce.

"We have indeed made a lot of achievements during the 12th Five-Year Plan (2011-15). But we also clearly see that compared with those developed international trade center cities, Shanghai still has a lot of shortcomings," Shang said.

Shang noted that during the development of the international trade center some problems will still need to be addressed. For example, the project will need to check that the level of the market system is not too high, ensure the provision of high quality goods and services, as well as manage increasing challenges regarding trade expansion and upgrades. Meanwhile, the trade and investment promotion system and layout is not perfect, and the trade space and environment need to be further improved.

"Entering into the 13th Five Year Plan, the external environment and internal conditions for the development of the international trade center are undergoing profound and complex changes. The pattern of international trade rules and systems will also see significant adjustments. Our country's opening-up policy and regional development strategy will also be further promoted. All of these have set new requirements for the construction of the international trade center," Shang said.

Responding to the new changes and potential challenges, the plan has grouped the major tasks and has detailed measures in six aspects, so as to further promote the construction of the international trade center. The tasks include: promoting system innovation in the Free Trade Zone and improving the system's international trade environment; promoting quality foreign trade and fostering new competitive advantages in foreign trade; promoting the deepening integration of trade and investment, and stimulating trade growth; enhancing the domestic market, promoting consumption and creating a new supply of trade; improving the modern market system and promoting trade circulation to a new level; enhancing service functions and creating new space for the development of trade.

Besides that, the city will also carry out a total of eight special campaigns during the 13th Five-Year Plan.

"This is the first time that the city has transformed its key work in the future five years into detailed special campaigns. These projects will ensure that the goal is clearer, the move more powerful and the task more informative," Shang said.

These eight projects include a service trade innovation project, a market circulation innovation project, developing quality international trade, boosting new consumption, improving the headquarters economy, improving the life service industry, speeding up trade facilitation and an equipment to go out project.

"In the preparation of the planning, we firmly insisted on developing the concepts of innovation, coordination, opening-up, being green and sharing. It works to adapt to the new trend of economic globalization, constantly enhancing the status of Shanghai in global trade and investing in the network. Meanwhile, the development plan focuses on the value chain, investment chain and consumption chain, continuously enhancing Shanghai's trade competitiveness," Shang said.

"The modern market system and trade system are two supporting environment systems that will also be reinforced," she added.

Over the years, Shanghai has made significant efforts to promote the construction of an international trade center. By the end of 2015, the import and export of goods in Shanghai port accounted for 27.6 percent of the country's total, 3.4 percent of the world's total, above international trade center cities such as Hong Kong and Singapore. The service import and export volume approached $200 billion, accounting for 27.6 percent of the country's total and 2.1 percent of the world's.

At present, the city has attracted 535 multinational companies to set up regional headquarters. In addition, 41 regional headquarters have been upgraded to Asia-Pacific headquarters. Meanwhile, foreign R&D centers in Shanghai reached 396, in which 120 are research institutions from the world's top 500 enterprises, which have become an important force for the city to acquire and utilize global innovation elements and build a global science innovation center.

At the same time, Shanghai has also accelerated its pace in expanding into overseas markets. In 2015, Shanghai's total foreign direct investment increased by 3.7 times, and its network covers 178 countries and regions.

Through investments in and acquisitions of overseas brands, technologies, channels and other resources, Shanghai enterprises' resources allocation ability in the global range increased significantly, Shang said.

Contact the writer at wanghongyi@chinadaily.com.cn

(China Daily 11/11/2016 page7)