Shanghai has been described as the "showpiece" of the booming economy of China.[116][117] The city is a global center for finance and innovation,[118][119] and a national center for commerce, trade, and transportation,[120] with the world's busiest container port—the Port of Shanghai.[121] As of 2019, Shanghai had a GDP of CN¥3.82 trillion (US$539 billion) that makes up 3.85% of China's GDP,[122] and a GDP per capita of CN¥157,138 (US$22,186).[123] Shanghai's six largest industries—retail, finance, IT, real estate, machine manufacturing, and automotive manufacturing—comprise about half the city's GDP.[124] In 2019, the average annual disposable income of Shanghai's residents was CN¥69,442 (US$9,808) per capita, making it one of the wealthiest cities in China,[123] but also the most expensive city in mainland China to live in according to a 2017 study by the Economist Intelligence Unit.[125]
As of March 2021, Shanghai has the world's second-highest number of billionaires of any city in the world after Beijing.[126] Shanghai's nominal GDP is projected to reach US$1.3 trillion in 2035 (ranking first in China), making it one of the world's Top 5 major cities in terms of GRP according to a study by Oxford Economics.[127]
Economy of Shanghai since the Chinese economic reformYear197819801983198619901993199620002003200620102013201620172018[128]2019[123]GDP (¥T)[129]0.0270.0310.0350.0490.0780.1520.2980.4810.6761.0721.7442.2262.8183.0633.2683.816GDP per capita (¥K)[129]2.852.732.953.965.9111.0620.8130.3138.8855.6277.2892.85116.58126.63134.83157.14Average disposable income(urban) (¥K)[130][131][132]0.642.184.288.1611.7214.8720.6731.8443.8557.6962.6064.18(total)69.44(total)Average disposable income(rural) (¥K)[133][131]0.401.674.855.576.669.2113.7519.2125.5227.82
Shanghai was the largest and most prosperous city in East Asia during the 1930s, and its rapid redevelopment began in the 1990s.[47] In the last two decades, Shanghai has been one of the fastest-developing cities in the world; it has recorded double-digit GDP growth in almost every year between 1992 and 2008, before the financial crisis of 2007–08.[134]
Finance
The Shanghai Stock Exchange is one of the largest stock exchanges in the world by market capitalization.
Shanghai is a global financial center, ranking first in the whole of Asia & Oceania region and third globally (after New York and London) in the 28th edition of the Global Financial Centres Index,[135] published in September 2020 by Z/Yen and China Development Institute.[136] Shanghai is also a large hub of the Chinese and global technology industry and home to a large startup ecosystem. As of 2021, the city was ranked as the 2nd Fintech powerhouse in the world after New York City.[137]
As of 2019, the Shanghai Stock Exchange had a market capitalization of US$4.02 trillion, making it the largest stock exchange in China and the fourth-largest stock exchange in the world.[138] In 2009, the trading volume of six key commodities—including rubber, copper, and zinc—on the Shanghai Futures Exchange all ranked first globally.[139] By the end of 2017, Shanghai had 1,491 financial institutions, of which 251 were foreign-invested.[140]
In September 2013 with the backing of Chinese Premier Li Keqiang, the city launched the China (Shanghai) Pilot Free-Trade Zone—the first free-trade zone in mainland China. The zone introduced a number of pilot reforms designed to incentivize foreign investment. In April 2014, The Banker reported that Shanghai "has attracted the highest volumes of financial sector foreign direct investment in the Asia-Pacific region in the 12 months to the end of January 2014".[141] In August 2014, fDi magazine named Shanghai the "Chinese Province of the Future 2014/15" due to "particularly impressive performances in the Business Friendliness and Connectivity categories, as well as placing second in the Economic Potential and Human Capital and Lifestyle categories".[142]
Manufacturing
The F-22P frigate built by Hudong-Zhonghua for the Pakistan Navy
As one of the main industrial centers of China, Shanghai plays a key role in domestic manufacturing and heavy industry. Several industrial zones—including Shanghai Hongqiao Economic and Technological Development Zone, Jinqiao Export Economic Processing Zone, Minhang Economic and Technological Development Zone, and Shanghai Caohejing High-Tech Development Zone—are backbones of Shanghai's secondary sector. Shanghai is home to China's largest steelmaker Baosteel Group, China's largest shipbuilding base Hudong-Zhonghua Shipbuilding Group, and one of China's oldest shipbuilders, the Jiangnan Shipyard.[143][144] Auto manufacturing is another important industry. The Shanghai-based SAIC Motor is one of the three largest automotive corporations in China, and has strategic partnerships with Volkswagen and General Motors.[145]
The Nanjing Pedestrian Street in the evening, with the Radisson New World Hotel in the background
Tourism is a major industry of Shanghai. In 2017, the number of domestic tourists increased by 7.5% to 318 million, while the number of overseas tourists increased by 2.2% to 8.73 million.[140] In 2017, Shanghai was the highest earning tourist city in the world, which is expected to maintain until 2027.[15] As of 2017, Shanghai had 33 five-star hotels, ranking 7th in the world.[16] As of 2019, the city had 71 five-star hotels, 61 four star hotels, 1,758 travel agencies, 113 rated tourist attractions, and 34 red tourist attractions.[123]
The conference and meeting sector is also growing. According to the International Congress and Convention Association, Shanghai hosted 82 international meetings in 2018, a 34% increase from 61 in 2017.[146][147]
Free-trade zone
Main article: Shanghai Free-Trade Zone
Shanghai is home to China (Shanghai) Pilot Free-Trade Zone, the first free-trade zone in mainland China.[148] As of October 2019, it is also the second largest free-trade zone in mainland China in terms of land area (behind Hainan Free Trade Zone [zh], which covers the whole Hainan province[149]) by covering an area of 240.22 km2 (92.75 sq mi) and integrating four existing bonded zones—Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area, and Pudong Airport Comprehensive Free Trade Zone.[150][151] Several preferential policies have been implemented to attract foreign investment in various industries to the zone. Because the zone is not technically considered Chinese territory for tax purposes, commodities entering the zone are exempt from duty and customs clearance.[152]
Shanghai has been described as the "showpiece" of the booming economy of China.[116][117] The city is a global center for finance and innovation,[118][119] and a national center for commerce, trade, and transportation,[120] with the world's busiest container port—the Port of Shanghai.[121] As of 2019, Shanghai had a GDP of CN¥3.82 trillion (US$539 billion) that makes up 3.85% of China's GDP,[122] and a GDP per capita of CN¥157,138 (US$22,186).[123] Shanghai's six largest industries—retail, finance, IT, real estate, machine manufacturing, and automotive manufacturing—comprise about half the city's GDP.[124] In 2019, the average annual disposable income of Shanghai's residents was CN¥69,442 (US$9,808) per capita, making it one of the wealthiest cities in China,[123] but also the most expensive city in mainland China to live in according to a 2017 study by the Economist Intelligence Unit.[125]
As of March 2021, Shanghai has the world's second-highest number of billionaires of any city in the world after Beijing.[126] Shanghai's nominal GDP is projected to reach US$1.3 trillion in 2035 (ranking first in China), making it one of the world's Top 5 major cities in terms of GRP according to a study by Oxford Economics.[127]
Economy of Shanghai since the Chinese economic reformYear197819801983198619901993199620002003200620102013201620172018[128]2019[123]GDP (¥T)[129]0.0270.0310.0350.0490.0780.1520.2980.4810.6761.0721.7442.2262.8183.0633.2683.816GDP per capita (¥K)[129]2.852.732.953.965.9111.0620.8130.3138.8855.6277.2892.85116.58126.63134.83157.14Average disposable income(urban) (¥K)[130][131][132]0.642.184.288.1611.7214.8720.6731.8443.8557.6962.6064.18(total)69.44(total)Average disposable income(rural) (¥K)[133][131]0.401.674.855.576.669.2113.7519.2125.5227.82
Shanghai was the largest and most prosperous city in East Asia during the 1930s, and its rapid redevelopment began in the 1990s.[47] In the last two decades, Shanghai has been one of the fastest-developing cities in the world; it has recorded double-digit GDP growth in almost every year between 1992 and 2008, before the financial crisis of 2007–08.[134]
Finance
The Shanghai Stock Exchange is one of the largest stock exchanges in the world by market capitalization.
Shanghai is a global financial center, ranking first in the whole of Asia & Oceania region and third globally (after New York and London) in the 28th edition of the Global Financial Centres Index,[135] published in September 2020 by Z/Yen and China Development Institute.[136] Shanghai is also a large hub of the Chinese and global technology industry and home to a large startup ecosystem. As of 2021, the city was ranked as the 2nd Fintech powerhouse in the world after New York City.[137]
As of 2019, the Shanghai Stock Exchange had a market capitalization of US$4.02 trillion, making it the largest stock exchange in China and the fourth-largest stock exchange in the world.[138] In 2009, the trading volume of six key commodities—including rubber, copper, and zinc—on the Shanghai Futures Exchange all ranked first globally.[139] By the end of 2017, Shanghai had 1,491 financial institutions, of which 251 were foreign-invested.[140]
In September 2013 with the backing of Chinese Premier Li Keqiang, the city launched the China (Shanghai) Pilot Free-Trade Zone—the first free-trade zone in mainland China. The zone introduced a number of pilot reforms designed to incentivize foreign investment. In April 2014, The Banker reported that Shanghai "has attracted the highest volumes of financial sector foreign direct investment in the Asia-Pacific region in the 12 months to the end of January 2014".[141] In August 2014, fDi magazine named Shanghai the "Chinese Province of the Future 2014/15" due to "particularly impressive performances in the Business Friendliness and Connectivity categories, as well as placing second in the Economic Potential and Human Capital and Lifestyle categories".[142]
Manufacturing
The F-22P frigate built by Hudong-Zhonghua for the Pakistan Navy
As one of the main industrial centers of China, Shanghai plays a key role in domestic manufacturing and heavy industry. Several industrial zones—including Shanghai Hongqiao Economic and Technological Development Zone, Jinqiao Export Economic Processing Zone, Minhang Economic and Technological Development Zone, and Shanghai Caohejing High-Tech Development Zone—are backbones of Shanghai's secondary sector. Shanghai is home to China's largest steelmaker Baosteel Group, China's largest shipbuilding base Hudong-Zhonghua Shipbuilding Group, and one of China's oldest shipbuilders, the Jiangnan Shipyard.[143][144] Auto manufacturing is another important industry. The Shanghai-based SAIC Motor is one of the three largest automotive corporations in China, and has strategic partnerships with Volkswagen and General Motors.[145]
The Nanjing Pedestrian Street in the evening, with the Radisson New World Hotel in the background
Tourism is a major industry of Shanghai. In 2017, the number of domestic tourists increased by 7.5% to 318 million, while the number of overseas tourists increased by 2.2% to 8.73 million.[140] In 2017, Shanghai was the highest earning tourist city in the world, which is expected to maintain until 2027.[15] As of 2017, Shanghai had 33 five-star hotels, ranking 7th in the world.[16] As of 2019, the city had 71 five-star hotels, 61 four star hotels, 1,758 travel agencies, 113 rated tourist attractions, and 34 red tourist attractions.[123]
The conference and meeting sector is also growing. According to the International Congress and Convention Association, Shanghai hosted 82 international meetings in 2018, a 34% increase from 61 in 2017.[146][147]
Free-trade zone
Main article: Shanghai Free-Trade Zone
Shanghai is home to China (Shanghai) Pilot Free-Trade Zone, the first free-trade zone in mainland China.[148] As of October 2019, it is also the second largest free-trade zone in mainland China in terms of land area (behind Hainan Free Trade Zone [zh], which covers the whole Hainan province[149]) by covering an area of 240.22 km2 (92.75 sq mi) and integrating four existing bonded zones—Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area, and Pudong Airport Comprehensive Free Trade Zone.[150][151] Several preferential policies have been implemented to attract foreign investment in various industries to the zone. Because the zone is not technically considered Chinese territory for tax purposes, commodities entering the zone are exempt from duty and customs clearance.[152]
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