February 10, 2002
Shanghai
The gateway to the mighty Yangtze River, Shanghai was primarily a fishing village for centuries until the British stepped up trading activities there in 1842.
Area: 2,418 square miles Population: 14 million Country: People’s Republic of China Language: Mandarin Monetary unit: Yuan
Business gateway to China
History
The French, the Japanese and other groups later established a presence in Shanghai, making it one of the world’s most international trading centers as well as China’s first special economic zone. Great houses of finance and commerce from throughout the globe opened offices in Shanghai in the 1930s, and the city’s raucous street life became famous throughout the world.
In 1947, the Communist regime eradicated Shanghai’s slums and opium dens, stamped out child and slave labor, and also drove out western companies. Since the 1990s, Shanghai has been reopened to the world, and has again become one of Asia’s top trading centers as well as the gateway to China. This venerable city is set for a new role as a global business capital.
Economy
Shanghai, one of China’s oldest industrial bases, has proved its ability to evolve with the times. The city has steadily instituted reforms over the past two decades to become a thriving free market economy with an expanding services sector, and international investors are taking note. Shanghai has attracted around 30,000 direct foreign investment projects, many of them developed by big-name multinationals. More than half of the world’s top 100 industrial companies have invested in Shanghai.
Steel, telecommunications, automobiles, power production equipment, petrochemicals, shipping and electrical appliances remain key sectors in Shanghai’s economy. Today, as a result of government policies over the past decade to encourage the growth of light industry and services, Shanghai’s financial services, real estate, tourism and information technology are all growing fast and predicted to become the backbone of the economy in future. The city’s government is well on the way to turning Shanghai into a leading regional economic and trade center.
The city is known for its international atmosphere, its many educational and research institutions, and its rich cultural offerings. This pro-business city is resolutely global in outlook and welcomes foreign expertise. It offers a well-developed business services sector, highly efficient and expanding transport and telecommunications infrastructures, a strategic Asian location, and a solid economic base. China’s entry into the World Trade Organization is expected to bring about even more opportunities in this fast-growing business center.
United States investors will find a wealth of opportunities in Shanghai.
