According to official statistics, the city’s value-added industrial output increased 7.3 percent year-on-year from January to June, beating its GDP growth of 6.9 percent. The automotive and electronic information industries were the best performers.
Driven by demand from new car models and new energy cars, the city’s automobile sector grew 22 percent from a year ago to become the greatest contributor to industrial growth. The electronic information industry grew 14.5 percent.
Meanwhile, productive service reported a 10.5 percent growth year-on-year in revenue. In addition, all types of exhibition space soared by 19.2 percent, e-commerce trade volume expanded by 21.7 percent, total online retail swelled by 29.5 percent, and international cruise berth vessels grew by 7.5 percent.
Liu said that this growth across the board is a result of a “double-engine driven economy” which relies on both the manufacturing and service industries.
“The service industry has been growing rapidly for several years. The manufacturing sector has started to catch up with this pace,” he said.
According to experts, the boundary between the manufacturing and service industries is getting vague and both stand to benefit from each other’s development.
In recent years, the municipal government has been driving the development of the “four new economy” — it refers to new industry, new business pattern, new technology and new mode — to tackle skyrocketing cost, limited resources and a bottleneck in economic development.
“The creative policy has greatly improved Shanghai’s innovation atmosphere and we have seen quite a few bright spots,” said Lei Xinjun, director of the Institute of Economics at the Shanghai Academy of Social Sciences. enterprises in the city’s top 100 companies list are from the service sector
The essence of the “four new economy” concept lies in that products would only be researched and developed in accordance with market demand, in turn boosting efficiency in production and preventing oversupply.
Under the new guidelines, the government will “give way” to enterprises and research the problems that companies face in their operations before creating solutions applicable to the whole city.
As part of restructuring efforts, the municipal government set up a problemfinding mechanism to help companies that are facing a bottleneck in their operations and unveiled guidelines encouraging industries to
in Shanghai grew 22 percent from a year ago to become the biggest contributor to industrial growth.
Though Shanghai looks to be well on its way to becoming an international hub for finance, shipping, trade and technological innovation, industry experts pointed out that the city does have an Achilles’ heel that could prevent it from fulfilling its full potential — private businesses.
Only 13 companies from Shanghai made it to the latest rankings of China’s top 500 private enterprises, one less than the previous year.
In contrast, the neighboring province of Zhejiang is home to 120 of the enterprises listed.
Shanghai has historically been China’s industrial base since the founding of the People’s Republic of China, with its industrial sector used to account for nearly 20 percent of the nation’s total.
Lei pointed out that nearly all the companies in the sector are either State-owned or collective-owned enterprises.
In addition, the city has since the 1990s been a hotspot for foreign-funded enterprises entering the China market.
The combination of these two factors meant that private-funded businesses have only a very narrow space to grow.
Experts noted that innovation input by private enterprises is crucial to the development of the city into a technological innovation center with global influence.
“As a matter of fact, a large quantity of the innovations would come from small private-owned enterprises, just like the creative small- and medium-sized enterprises in the US,” said Liu.
He noted that Zhejiang has done a better job in offering policy, resources and public service for all business, while Jiangsu’s favorable environment, quality of life and public service policies attracted private enterprises to grow and develop.
He said that Shanghai should learn from these successful examples to better promote its own private enterprise sector.
The automotive sector