Shanghai at a glance in 2016
Leadership of the Shanghai Municipal People’s Government
|1. Party Secretary - Mr. Han Zheng (also member of Politburo of CPC)||
2. Mayor - Yang Xiong (appointed in February 2013)
The municipality of Shanghai is one of China’s most dynamic and economically advanced areas. Following State Council’s announcement in 2009 to build Shanghai into an international economic, financial, trade & shipping centre (Four Centers) by 2020, nine key industries were specifically identified and target output value was set for realization by 2012. Shanghai Municipal Government’s 12th Five-Year Plan (2011-2015) highlights 10 major projects including a national exhibition facility, an international trade and overseas marketing promotion center, a Chinese technology import and export exchange, an electronic business platform, a commodities exchange, a services industry district etc. The overall objective of Shanghai is to develop a modern service industry and advanced manufacturing industry in the city while increasing the profile of service sector in Shanghai’s economy to beyond 70%. The goals of the 13th five year plan focusing on achieving a moderately prosperous society by 2020 achieving an annual per capita GDP of about 150,000 Yuan by 2020.
The Government has been encouraging foreign MNCs to establish their regional headquarters in the city and the number of such regional headquarters increased to 535 in 2015. Shanghai is now home to 1430 financial institutions including all the leading global institutions, including 618 monetary and financial service units, 350 capital market service units and 382 insurance companies and 396 R&D centers. At the end of 2015, among all kinds of financial institutions, foreign financial institutions reached 230.
Shanghai Port is the world's largest dry bulk cargo port & container port surpassing Singapore for the first time in 2010 and presently handling 36.5370 million TEUs, ranking top in the world for the sixth consecutive year. Shanghai’s own Foreign Service trade (by international accounts) totaled US$ 196.672 billion, up 12.2% and accounting for nearly one-third of the country’s total. The volume of cargo handled in Shanghai accounts for 10% of the national total, and commodities passing through the city’s Customs 25% of the nation’s total. Shanghai Waigaoqiao Shipbuilding Co. built record 36 ships (8.15 million DWT) in 2011 & created a new record for annual output of ships, ranking No.1 for 7 consecutive years in China. It has also become the first Shipbuilding Company to achieve 8 million DWT of ships in China.
Shanghai is one of the most urbanized regions in China. It is at the top of Brookings Institution's list of the world's 200 largest metropolitan areas. In 2010 Shanghai hosted the biggest ever Expo in the history of World Expos. Shanghai boasts of world class infrastructure which also received a massive boost in preparation for Shanghai World Expo in 2010. The ambitious Disneyland project which started in 2011 was completed and opened this year. More than 2000 households and 297 enterprises at the site however have been relocated to develop the same. The Beijing- Shanghai Hi-speed train started operation on 30 June 2011. It took 38 months to complete the 1318 km railway track which was done ahead of the schedule. Hongqiao International Airport has been certified as an aviation service base for business jets, the first in China & second in Asia.
The Central Government’s decision of bringing Shanghai into the forefront of China’s economic development has considerably strengthened Shanghai’s position both in China as well as internationally particularly from the point of view of development of logistics and the integration of the Yangtze River Delta Region. As Shanghai continues its work transformation of its industrial structure focusing on high tech and strategic industries such as large aircraft assembly plants, shipbuilding, electronics manufacturing and IT, the City will continue to play an extremely important role in China’s economic growth in future.
Shanghai used to be the country's manufacturing hub, with a reputation for products such as watches, bicycles, television sets, textiles and refrigerators. The picture is changing as the city works to make more advanced products and boosts its service industry. To spur advanced manufacturing industries focus is now on next generation IT, high end medical devices, robotics, high temperature superconductors, equipment manufacturing and new and renewable energy. Progress is being planned on implementing Shipbuilding base and Auto city; restructuring of Baosteel (to remove polluting plants). Emerging manufacturing industries are New-generation information technology, intelligent manufacturing equipment, New energy, Biomedical pharmaceutical and high-performance medical devices, high tech ships and marine engineering equipment, civil aviation and space information, energy conservation and environmental protection and New materials. The overall aim is to foster enterprises that design, source and sell in Shanghai and produce elsewhere. At the same time the government will support domestic industry in their efforts to go global.
Shanghai has become one of India’s key partner municipalities in China. . The Hon’ble Prime Minister of India Mr. Narendra Modi paid a very successful visit to Shanghai during May 15-16, 2015. The itinerary of Prime Minister in Shanghai included meeting with top Chinese CEOs, India China Business Forum, Meeting with Shanghai Party Secretary Mr. Han Zheng and inauguration of Gandhian and Indian Studies Center at Fudan University. Before concluding his visit to China, Prime Minister attended a reception organized by the Indian Community in Shanghai. In January 2016, Hon’ble Chief Minister of State of Haryana led a delegation to Shanghai and in April 2016, Hon’ble Raksha Mantri Shri Manohar Parrikar led a delegation to Shanghai. Chief Ministers from Indian States of Telengana, Andhra Pradesh, Punjab, Gujarat, Bihar, Madhya Pradesh, Karnataka and Manipur had visited Shanghai in recent years. Hon’ble Home Minister Shri. Rajnath Singh paid official visit to Shanghai in November, 2015. President of India H. E. Smt. Pratibha Devisingh Patil visited Shanghai during May 29-31 2010 as part of her State visit to China. This was the first visit by any VVIP from India to Shanghai since 200.
Shanghai Party Secretary Han Zheng visited India in May 2016. He led an 80 member business delegation to India. In New Delhi he met Prime Minister Shri Narendra Modi and in Mumbai he met heads of leading companies including Tata sons, Infosys Technologies etc. Mumbai and Shanghai are sister cities and this visit is seen to encourage strong cooperation between the cities.
India - Shanghai Economic & Trade Relations
In 2015, India’s total trade with Shanghai stood at US$ 6.6 billion, a decline of 2.1% on year-on-year basis. In 2015, from January 1st to November 30th the exports from India to Shanghai totaled US$ 2.4 bn, a decline of 17.4% on year-on-year basis and imports by India from Shanghai totaled US$ 4.2, a rise of 9.3% on year- on-year basis.
The principal items of export from India to Shanghai diamond, unwrought copper and copper products, textile yarns, fabrics, unwrought zinc and zinc alloy, clothes and accessories. The main items of import from Shanghai to India included automatic data processing equipment and its components, telephone/telecommunication related equipments, medicines, steel products, primary shape plastics.
Shanghai companies in India
Many prominent companies from Shanghai are present in India and doing business with a large cross-section of Indian companies in various sectors such as power generation, infrastructure development and cellular technology. This includes Shanghai Electric Corporation Limited (invested 9.8mn USD), Shanghai Urban Construction Group (SUCG), Baosteel, Shanghai Yong Guan Commercial Equipment Co. Ltd, Shanghai Centrifuge Institute Co. Ltd., Shanghai Zhenhua Port Machinery Co Ltd, ZTE Corporation, Highly Electrical Appliance(India) Co Ltd (manufacturer of compressors for air conditioners), Shanghai Baijin Group (manufacturer of chemicals), Shanghai Yanfeng Visteon Automotive Trim System Co Ltd, Trafomec(India) USP Magnetics, Shanghai Yunju Investment & Management Co., Ltd (along with a foreign company invested 200 mn USD in acquiring India ONE97) Shanghai Fosun Pharmaceuticals ( bought Gland Pharm IN 2016 for $1.3 bn) etc. Shanghai Research Institute of China Postal Group has entered into a joint venture with Mail Management Division, Department of Posts for automation of mail sorting process.
Indian Companies in Shanghai
There are about 100 Indian companies and financial institutions based in Shanghai. Apart from IT majors like Tata Consultancy Services (TCS), Infosys, Wipro, HCL and NIIT, major industrial houses like Larsen & Toubro, GMR, Adani Group, Aditya Birla group, Moserbaer, Reliance, Raymonds, TATA, BEML, Thermax, TVS, TAFE, Aurobondo Pharma, Lupin, Piramal and Dr. Reddy's Laboratories have offices in Shanghai. CII has full fledged presence in Shanghai since 2003. There are 4 PSUs namely Air India, BEML, BHEL & Engineers India Ltd. (EIL) in Shanghai. Air India operates five weekly flights from Shanghai to Delhi & Mumbai. With another 4 weekly flights from Shanghai to Delhi by China Eastern, Shanghai is the city which has maximum connections with India. There are six banks namely Axis Bank, Canara Bank, ICICI, Punjab National Bank, State Bank of India (SBI) and Union Bank of India based in Shanghai. Out of these banks, SBI commenced RMB operations in March 2010, while Canara Bank does non- RMB operations. There are also a large number of trading firms based in Shanghai that are engaged in sourcing raw material and semi-finished products from China.
The Shanghai Diamond Exchange, set up in 2000, has a significant number of Indian traders. India is the fourth largest exporter of Diamond after South Africa, Belgium and Japan accounting for 7.44% of total exports of diamonds to China. Diamond contributes to around 5 % of total exports from India to China.
India-Shanghai Cultural cooperation:
ICCR and Center for China Shanghai International Art Festival (CSIAF) have had close cooperation over the last few years. In 2015, India was designated as the Guest of Honour country for the 17th Edition of CSIAF in Shanghai and a series of cultural performances, including Bollywood dance performances, as well as an exhibition titled “Forms of Devotion” were put on display at the National Museum in Shanghai. In the last couple of years, several cultural troupes from India have performed in the Eastern China Region as part of the ongoing collaboration between ICCR and CSIAF.
A MoU was signed between ICCR and CSIAF during DG ICCR’s visit to Shanghai in October 2016 which calls for cultural performances to be organized in India and China during 2017-2018. As a part of the MoU both sides will attempt a joint theatrical re-production of the popular Indian movie ‘Awaara’ which would be set in contemporary times and re-enacted as a theatrical version for viewing by contemporary audiences worldwide.
During Prime Minister Modi’s visit to Shanghai in 2015, ‘Center for Gandhian and Indian Studies’ was inaugurated at Fudan University. The center for Gandhian and Indian studies is headed by Indologist Prof Liu Zhen. An ICCR sponsored Hindi chair has been in place from 2013 onwards at Shanghai International Studies University.
Indian community in Shanghai
The total number of Indian nationals residing in Shanghai is estimated at about 5500. In recent years, there has been a significant increase in the number of Indian companies setting up their offices here. The Indian community is a mix of entrepreneurs, professionals employed by Indian and global multi-national corporations, service personnel, senior business executives and traders. The Indian Association Shanghai is the apex body for the Indian community in Shanghai and regularly organizes cultural and sports events and gatherings during Indian festivals. There are more than 35 Indian restaurants in Shanghai.
Places to see in Shanghai
Shanghai is both an international metropolis and a place reminiscent of the city’s rich historic and cultural past. The city has various interesting tourist spots which include parks, gardens, museums, churches, temples, towers etc. Shanghai is home to buildings and structures of various architectural styles. The Bund, located by the bank of the Huangpu River, has a rich collection of early 20th century architecture, ranging in style from neoclassical to the art deco. Nanjing Road and Fuzhou Road are also famous landmarks of Shanghai since that period. A number of areas in the former foreign concessions are also well preserved, most notably the French Concession. Shanghai has retained some ancient sites such as the Yuyuan Garden, an elaborate traditional garden in the Jiangnan style; Longhua temple, the oldest Buddha Temple in Shanghai renowned for its annual fair; Jade Buddha temple, one of the most famous Buddhist temples of Shanghai which houses the beautiful white Jade Buddha statue that was brought from Myanmar in the nineteenth century. The Lujiazui Financial and Trade Zone on the eastern side of the river, known as ‘Pudong’, hosts the tallest buildings in Shanghai, the Jinmao Tower & World Financial Centre. The Oriental Pearl TV Tower is the tallest TV tower in Asia and all time favorite with the visitors.
|Oriental Pearl TV Tower
|Jade Buddha Temple