view: Shanghai by 2020
following is the full text of the speech by Mayor Han Zheng in
meeting with the delegates to the China Daily CEO Roundtable in
believe everybody in the room has some knowledge about the past
and present of Shanghai. Under the guidance of the central government,
Shanghai is considering its plans.
year, our country will launch the 11th Five-Year Plan (2006-11).
Shanghai is also set to draft its social and economic development
plan for the period.
general goal of our city is to become an international economic,
financial, trade and shipping centre. This goal was tailored for
Shanghai by the central government and matches the theme of this
roundtable - 2020: The World's Shanghai.
designed two stages for the achievement of our goals.
first is to build a framework for an international economic, financial,
trade and shipping centre by 2010. The second stage is to fully
accomplish that by 2020.
international economic centre should first tap its potential as
a metropolis. Its industrial structure, in particular, should
be developed as those of international cities. Shanghai has mapped
out an industrial structure that puts the "service industry
first, manufacturing second, and agriculture the third."
it has done since the 1990s, Shanghai is going to give priority
to the modern service sector. The service sector now accounts
for 48 per cent of Shanghai's GDP, compared with 30 per cent or
so in early 1990s. The 48 per cent ratio takes into account the
suburban areas of Shanghai. If we only count the figures in the
600-square-kilometre urban area, the ratio is between 75 to 80
per cent, and it is comparable to that of New York or Paris.
development of the service sector matters to the nature and function
of Shanghai. We are changing from a manufacturing and commerce-themed
city into an international economic centre. Development of the
service sector is key to the change. I think the service sector
will grow further growth in the next few years.
financial industry will grow further under the leadership of related
central government administrations. The financial industry in
Shanghai already has a solid foundation. Shanghai is home to the
country's capital market, foreign currencies market, many futures
exchanges, a diamond market, gold market and property exchange.
we are still lagging in the extent of internationalization, but
we have a way to tackle this issue. The Shanghai Municipal People's
Government is fully committed to developing an international financial
financial industry is the core of the modern economy and the key
to the development of our service sector. Besides that, the information
and logistics industries are also very important. The information
industry has surpassed finance, automobiles and real estate to
become Shanghai's largest industry. But now the output of the
industry is mainly generated by manufacturing rather than service.
Information services will be a priority in our future plans.
the service sector, our manufacturing industry will still continue
to make progress in the future. Shanghai has historically been
the country's manufacturing centre and in the city's suburbs manufacturing
manufacturing, the automobile industry will have major growth.
Shanghai will ultimately have a production capacity of 2 million
automobiles each year. This does not include the output from Shanghai
manufacturers' workshops outside the city.
important area is equipment manufacturing, especially accessories
for major industries, such as rolling stocks and parts for building
ships. Baosteel now has a yearly output of more than 20 million
tons of iron and steel products. I think the volume is big enough
but we can upgrade the product structure by producing more refined
petrochemical industry will also see fast growth in the next a
few years. There is now a 50-square-kilometre chemical industry
park along Hangzhou Bay, where I think some of you may have investments.
I believe it will become a world-class chemical industry zone.
strategy in the next five years is to fully develop modern service
in the urban area and foster advanced manufacturing in the suburbs.
This is the direction of the adjustment of Shanghai's industrial
structure. The key to this adjustment is technological innovation.
the past to the present and from the present to the future, Shanghai
needs to fulfil several major changes.
is to transform the economic system from a planned system to a
market-oriented one. All our jobs, including the shift of the
government's role, must be in line with the transformation. The
point is to let the market play a fundamental role in the distribution
of social and economic resources.
second is to transform from a manufacturing-and-commerce-based
city to an economic centre. The key to this job, as I've mentioned,
is to optimize the industrial structure.
third is to shift the focal point of urban construction from bailing
out non-performing projects to building an international infrastructure
pivot network. Shanghai is moving ahead towards this goal.
the past, Shanghai was a major port city, and it will become a
world-class port in the future. I would like to share with you
some numbers of which I am pretty confident: The cargo handled
through Shanghai's ports will exceed 400 million tons this year,
a volume no port in the world achieved last year. In particular,
container handling will surpass 17 million TEUs (twenty-foot equivalent
units) this year, up 3 million TEUs from last year. Based on this
growth the volume will likely exceed 20 million TEUs next year.
By my reckoning the growth of Shanghai's handling capacity will
continue to grow at three million TEUs each year.
we have a solid foundation for further growth of port's handling
capacity. The first-phase project of the Yangshan deep-water port
will be finished and start operation in the fourth quarter this
year. The bridge linking the port to the mainland, which is more
than 30 kilometres long, was nearly completed last month when
its two ends met. It will open to traffic in late October or November.
The first-phase of the Yangshan Port, with five deep-water berths,
will start operating in the fourth quarter this year. The second
phase, with four more berths, will start operating next year.
The third phase is being prepared now. Shanghai's ports are developing
under strong conditions.
regard to airports, the Pudong International Airport, designed
by the central government to be a pivotal port, is undergoing
construction of its second phase. The second runway is in operation
and we are preparing for the third. A new passenger terminal covering
400,000-square-metres is under construction. So far everything
with the construction is going well and we are confident it can
be open by 2008. We have a goal that by 2010, when Shanghai hosts
the World Expo, the Pudong International Airport and the Hongqiao
International Airport will together be able to serve 80 million
passengers a year.
express railway network linking Shanghai to the Yangtze Delta
is being optimized. Construction of inter-city express railways
is speeding up under the plan of the Ministry of Railways.
are also some short-term goals and they will push Shanghai's transformation
as an infrastructure pivot for the world and the entire country.
fourth transformation is to change the city's economic growth
from quantity-based to quality- and efficiency-based, blazing
a trail that features technological innovation and improvement
in the quality of human resources. It demands greater courage.
city of Shanghai, like your enterprises, needs constant innovation,
which is indispensable for any city that wants to grow by leaps
and bounds. The government needs to cultivate an environment that
encourages innovation. Certainly it is very important to rely
on technological progress and a strategy of rejuvenating the city
through science and education that will improve the quality of
long as we can fulfil the four changes mentioned above and if
we shift the government's function successfully according to the
central government's requirements, Shanghai will develop well.
In future reforms we will shift the government's role faithfully.
are the changes that will take place or are taking place in Shanghai.
But there are also challenges and bottlenecks we have to tackle.
we need to strike a balance between economic growth and protection
of the environment. I envy many cities in America and Europe that
have a nice environment. But it is impossible for Asian cities
where land is so scarce in per capita terms.
Shanghai has a de facto population of 20 million. The environmental
conditions created by 20 million people are totally different
from those created by 10 million. Considering the high population
density and the limited per capita possession of land and resources,
it is a big test for the government to achieve harmony between
economy, society and the environment.
have to crack the nut. The only way out is to develop a recycling
economy in Shanghai. We must promote the concept of an economical
society - to save energy, save resources, and save every inch
of land. Meanwhile we have to make efforts to protect the ecology.
The municipal government has decided that the input in environmental
protection in the future should not be less than 3 per cent of
efforts are paying off.
2003 to the end of last month, first-and second-rate weather days
were up to 85 per cent of the total. The municipal government
will work with more dynamism to treat Shanghai's water and air
according to the law.
you have seen, Shanghai is creating more and more green land.
We plan to increase Shanghai's per capita possession of green
land to 12 square metres within the term of this administration
(2003-08). Last year, Shanghai was awarded the "national
garden city" award. It was a hard-won merit, but we will
not stop and will continue to work hard.
second issue is Shanghai has very limited resources, especially
energy and land. There are few resources that can be supplied
locally so the city has to save as many resources as it can. In
this regard, we focus on three areas.
first is to save land. Land is not recyclable and we have to treasure
every inch. The second is to save water, which is the most important
resource to human development. Shanghai does not lack water, but
lacks good water. So Shanghai suffers water shortages in qualitative
terms. Shanghai has to make tough efforts to protect water resources
for the sake of our future generations. The third is energy sources.
Currently Shanghai's energy is mainly supplied by coal. I think
in the future Shanghai's energy source structure should be a mixture
of coal, natural gas and oil - with a sound and safe proportion.
We will also follow the central government's plan to increase
the use of natural gas.
third challenge is tackling the many social issues created by
the city's huge population. We always say, "people first,"
which means all the government's work is for the public. To be
frank, as the mayor of Shanghai, there are several problems to
deal with. First, with a population of 20 million - 17 million
of them permanent residents, Shanghai now sees growing employment
pressures. We must create more jobs. The registered jobless rate
in Shanghai is 4.5 per cent, which indicates relatively sufficient
employment. I hope the situation will last. This is also a fundamental
factor in our pursuit of a harmonious society. Today you can see
our citizens in the street wearing happy faces and one of the
biggest reasons is they have jobs.
we have to face the problem of an aging society. Now people older
than 60 make up 19 per cent of Shanghai's permanent residents.
Twenty per cent is the threshold of an ageing society according
to the United Nations standard. Shanghai is approaching that point,
given that its population is now in negative growth. I am pretty
sure Shanghai will become an ageing society before my term of
office expires in two years and a half or maybe as quick as next
year. To make our senior citizens happy, allow them to contribute
and ensure them a comfortable lifestyle is an important part of
building a harmonious society. Everybody gets old, and if today
we think about our senior citizens, tomorrow someone will take
good care of us the same way.
have taken a series of measures to improve the welfare of senior
citizens and take care of those who are single. The municipal
government has increased expenditure in this aspect.
also need to create a sound social security system that covers
all walks of life, which is very important to nourishing a fair
society. The social security system should be compatible with
the city's size, the extent of its economic development, and the
livelihood of its citizens. Our social security system has taken
shape, which includes unemployment insurance, health insurance,
pension insurance, work injury insurance and pregnancy insurance.
is a brief introduction to Shanghai. Thank you.
Elmar Stachels, Managing Director, Greater China Country Group,
Bayer China Co Ltd: It is very difficult to raise questions after
your very comprehensive elaboration on all topics, which is very
impressive, responsible, and professional. My question is: Is
it possible to build the kind of community where industry, academic
institutions and the government work together? In a sense the
companies will introduce their contribution to, for instance,
energy saving and other technologies. I think many of us have
a lot of know-how with regard to environmental protection. If
we form a community to bring all these ideas together and then
implement a market plan to promote Shanghai into a green Asian-Pacific
metropolis, do you think it is a realistic or feasible approach?
Your question indicates that you love Shanghai very much. The
Shanghai municipal government cares a lot about learning from
other world cities. We see their success as the fruits of human
civilization. I am very pleased to introduce you the IBLAC (International
Business Leaders Advisory Council for the mayor of Shanghai).
The council has been meeting for more than a decade every year
for this purpose. World-class economists and senior executives
from multinationals participate. They have made a lot of suggestions
on Shanghai's development and we took many of their suggestions.
Now we are facing very tough challenges in our development, and
we need a world perspective, world talent and world expertise.
We will continue to listen to your opinions and are open to new
ideas from you.
government has procedures to discuss these ideas and opinions.
For example, I have several environment experts who advise me
directly, including Mr Klaus Toepfer, former German environment
minister and now the director of the United Nations Environment
Programme. He gave me many good suggestions. Thanks very much
for your suggestion.
now every job is multi-disciplinary and comprehensive. So having
forums and discussions by experts from different disciplines,
like this roundtable, is valuable. You know much about Shanghai
after living here for three and a half years, and you'll know
more in the future. Please feel free to write to me with your
ideas at any time. Thank you.
Russo, President, Greater China, McDonald's China Development
Company: Thank you very much and I was also very impressed with
your introduction to Shanghai. I've only lived here for two and
a half days. I moved from Australia to work for McDonald's China.
I was interested in your comments on the service industry and
was wondering what we could do to help the government and the
mayor to achieve your goal?
McDonald's is quite successful in Shanghai. You really grabbed
the hearts of the younger generation and kids. I tell you a secret
in the Chinese market: you get the kids, and you get everyone.
Six adults look after every child: The parents and four grandparents.
If one adult accompanies the kid to McDonald's each time, there
are six visits in a round. My suggestion is if you can develop
something for the elderly, it is going to be very successful.
Lam, Chief Representative of Shanghai Representative Office, Fidelity
Investments Management (Hong Kong) Ltd: Can you enlighten us on
what measures you would consider on training of human resources
for the banking and financial industry?
The financial system of a country is integrated, so the development
of Shanghai's financial industry is part of the development of
the national financial system. It takes several indispensable
elements to be a financial centre. The first is world-class financial
institutions. The second is an environment suitable for the growth
of an international financial industry, including a compatible
regulatory system. Third and also the most important is talented
thing is innovation of financial products. Shanghai now already
houses many financial institutions, while there is still a need
to optimize the market environment and we are short of professionals.
Human resource is the most important factor in developing the
be candid, Shanghai is lagging in this aspect. We are taking measures
to address it. First, we are strengthening the training for more
financial professionals. Second, we are also seeking international
co-operation. Third, we are trying to make Shanghai a magnet that
attracts talented people. We have noticed the gap and we are making
efforts. We believe the gap is going to be narrowed. Thank you.
(June 21, 2005)