2013 Briefing on Shanghai’s Commerce

and InvestmentMr. Zhou Bo

Vice MayorShanghai Municipal People’s Government

Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven

Economic Transformation proved to be effective and made great achievements

Total GDP last year: 2 trillion RMB, 7.5% growth year on year

Local fiscal revenue last year: 374.37 billion RMB, 9.2% growth year on year

Consumer price up by 2.8% last year, a 2.4 percentage drop in increase compared to 2011

1. orderly run economy

Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic

Transformation proved to be effective and made great achievements

2. faster pace in structural upgrading

The tertiary sector, which took up 60% of the total GDP, saw a 10.6% growth in added value last year, outpaced the industrial sector by 7.5%

With consumption contributed over 70% of economic growth, the city’s economy became less reliant on sectors like investment, real estate, heavy industry and labor intensive processing industry

Great progress has been made in energy conservation and emission reduction, with energy consumption per unit GDP reduced by 10.5% in the last 2 years

Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic

Transformation proved to be effective and made great achievements

Faster upgrading of the city’s functions

1227 registered financial institutionsTotal trade volume of the financial market

reached 528 trillion RMB

Shanghai’s port has the world largest container throughput 3 years in a row

Pudong Airport has The third largest Airport cargo throughput in the world for 4 consecutive years

The construction of the city as an international cultural center and smart city paced up, with optic fiber access covering 6.5 million households

Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic

Transformation proved to be effective and made great achievements

Innovations in reforms and follow up on breakthroughs

the pilot scheme of business tax in lieu of value added tax proved to be effective

new progress has been made in “Pudong Across-the-board Coordinated Pilot Reforms” and other key reforms

a significant improvement in scientific and technological innovation capacity

Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic

Transformation proved to be effective and made great achievements

constant improvement of people’s well-being

613,800 newly created jobs

10.9% and 11.2% y-on-y increase in urban and rural residences’ disposable income

167,000 subsidized housing of various kinds are either in construction or being planed, with a total area of 12.82 million ㎡

spending on environmental protection was maintained at 3% of total GDP, with 5500 hectares of newly built green space

People’s well-being

Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom

Expedite Expedite

ReduceReduce

MultiplyMultiply

Eliminate

Eliminate

During Shanghai’s “Two Sessions”,

Secretary of CPC Shanghai Committee,

Mr. Han Zheng said ：“ Reform is the

biggest dividend, opening-up is the

biggest advantage, innovation is the

most important driving force, talent is

the most important resource

Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom

With trials and pilot schemes to push forward the reform on economic system and further open up the economy

Expedite means expedite the development of strategic emerging industries and the improvement of the city’s capacity to serve the whole country

1.Deepen the “across-the-board coordinated pilot reforms” and pilot on the establishment of Free Trade Zone2.Continue to reform on the opening of off-shore foreign currency account and innovations in financial leasing3.Continue to expand the pilot scheme of business tax in lieu of VAT, incorporate industries like post and communication industries into the scheme when appropriate4.Support the development of headquarter economy and put in place a comprehensive policy framework to support MNCs establishing regional headquarters5.Encourage and support capable local enterprises to invest abroad

Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom

Committed the city to develop modern service industry and reform on collective operation and management of foreign exchange owned by MNCs’ headquartersReform on collective operation and management of foreign exchange owned by MNCs’ headquartersPush forward the pilot scheme of foreign exchange management by International Trade Settlement CenterAccelerate the development of the EXPO area, Lingang area, Hongqiao Business District and Shanghai International Tourism Resort

Reduce means further reduce the reliance of Shanghai’s economy in 4 areas

Focus on key industries, key projects, key districts and accelerate the process of economic restructuring and transformation

Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom

Reform the modern service industry and the government licensing process for investment projects, adopt standardized procedure in the licensing process across the boardLimit the areas where the government can invest in and further delegate the autonomy of investment to enterprisesSpare no effort in improving administrative transparency and introduce in the mechanism to disclose the draft of major administrative decision to the publicImprove rule based operation. Exercise the power and honor the responsibilities strictly in line with the legal procedures and within the discretion granted by law

Multiply means the improvements in administrative efficiency and legal environment should have multiplier effect

Mindful of our objective to build a rule-based, clean, accountable and service oriented government, we aim to transform the role of government

Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom

eliminate means further eliminate backward capacity and the industries with high energy consumption, high pollution and high

risks create a resource conserving and

environment friendly society in line with the principle

of controlling the total amount of resources, adjusting the remained resources, focusing on efficiency

and encouraging social participation

Push forward the industrialtransformation and upgradingPromote the convergence of

Industrialization and informatizationEncourage enterprises to invest in

upgrading technologies

Actively develop production-related service industry

Support key industrial enterprises in transforming themselves into R&D, sales and advanced manufacturing

oriented entities

Eliminate 500 backward capacities with high energy consumption,

high pollution and high risks

Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom

To enhance the

city’s management

To build a deep talent

pool

To build a Smart City

Happy New Year