China Daily (USA) - - SHANGHAI FOCUS -

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

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