Shanghai Booming......................................................
cei.go.cn
Shanghai is leading nation's economic boom
by Zhao Shaoqin
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SHANGHAI (Xinhua) -- Shanghai, China's leading industrial base, is on track to spearhead the country's economic growth into the 21st century.
The vibrant metropolis' economy has been growing at an annual rate of 13 per cent for the last six years with per-capita gross domestic product (GDP) hitting a record US$3,000 in 1997, according to the latest statistics.
The fast-moving economic train of Shanghai, the result of restructuring and the market mechanism, has become a driving force in powering the development of China's national economy which grew 8.8 per cent in 1997 over the previous year, said Yao Xitang, a research fellow with the Shanghai Academy of Social Sciences.
Shanghai has long been an economic growth leader but lost steam in the late 1970s and 1980s because of strict State planning, under which the economic centre contributed most of its revenue and taxes to the national coffers.
In 1992, when China adopted a socialist market economy, Shanghai regained its momentum as the country's economic leader. During the last several years, the city sped up its reform of State-owned enterprises, optimized economic structures and built itself into an international financial centre.
Expansion of the service sector, which now accounts for 45 per cent of the city's total GDP (US$36 billion in 1997), is one of the major factors fueling rapid economic growth.
As part of its efforts to regain past glory as Asia's financial centre, Shanghai has established a comprehensive banking network that involves domestic and foreign financial institutions, trust corporations and insurance firms.
Shanghai has become a hub for commodities, capital, technology, information and education. Burgeoning markets of production materials and commodity exchanges stimulate circulation while the stock market, inter-bank lending and the foreign exchange trading centre enjoy brisk business.
Through economic restructuring, the city has also nurtured six technology-intensive pillar industries including automobiles and telecommunications. Shanghai has also developed industries such as electronics and biological engineering.
Unlike other parts of China, most of the financially troubled State-owned firms in Shanghai have been rescued and have become vigorous through the introduction of a modern enterprise system. Date: 01/05/98 |
