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GDP: 540.876 billion yuan (2002).
GDP growth rate: 10.9 percent.
Average GDP per capita: 34,600 yuan in 2000.
GDP ratio (1st, 2nd and tertiary industries): 1.7 : 47.6 : 50.7 (2001).
Poverty alleviation plan:
In 1999, the government?ˉs poverty alleviation plan covered a poor Population of 466,000 in urban districts and suburban towns. A total of 113,000 citizens in urban areas were guaranteed subsidies for basic living necessities, and 45,000 people received support in kind.
Revenues: 220.2 billion yuan in 2002, up by 10.4 percent from the previous year.
Industrial added value: 231.28 billion yuan.
Foreign trade:
In 2002, the total value of imports and exports reached US$72.66 billion, up by 19.3 percent from the previous year.
Foreign investment:
By the end of 2002, a total of 104 countries and regions have investment in Shanghai. During the year, Shanghai approved 3,012 foreign direct investment projects, up by 22.5 percent from 2001. The contractual value amounted to US$10.57 billion, of which US$5.03 billion were actually used. These two figures were 43.4 percent and 14.5 percent up from the previous year respectively.
Friendship cities:
By the end of 2000, Shanghai has established long-term friendship relations with 47 cities (provinces, states) in 39 countries. A total of 39 countries had set up consulates in Shanghai.
Pillar industries:
Auto industry, electronic and telecommunications equipment industry, manufacture of power station equipment and parts, petrochemical and fine chemical processing industry, iron and steel industry, and home electric appliances industry.
Agriculture:
In 2002, the total agricultural output value in Shanghai reached 23.37 billion yuan. Of this figure, plantation contributed 9.74 billion yuan, animal husbandry contributed 8.7 billion yuan and fishery contributed 4.23.
Shanghai has made great effort in promoting the industrialization process of agriculture to probe new development approaches. By the end of 2000, the construction of facilities for the first group of four modern agricultural parks had been finished. A group of projects, including vegetable, flower and edible fungus production and farming product processing, began operation. More than 300 large and medium-sized, or foreign-funded, agricultural enterprises as well as 234 modern vegetable farms had been established. Great process has also been made in building new-type agricultural industry with the establishment of various projects such as that for seed cultivation, greenhouse, biological engineering and urban greenery.
Industry:
Shanghai became China's center for textile industry in the 16th century and has been one of the largest industrial bases in the country since 1949. Now it is China?ˉs largest economic and shipping center and will gradually develop into an international center of economy, trade and shipping.
In 2002, Shanghai?ˉs state-owned and state-holding industrial enterprises made total profits of 31.82 billion yuan, making up 58.4 percent of the city's total industrial profits. The pillar industries represented by the auto industry yielded 451.788 billion yuan, making up 58.4 percent of the city?ˉs total output value.
Commerce:
In 2002, the commercial sector in Shanghai achieved 36.34 billion yuan in added value, up by 11.1 percent from the previous year. The total turnover from retails of consumer goods reached 203.52 billion yuan. The number of chain stores had reached 6,432. The annual chain business sales value amounted to 63 billion yuan, up by 21.2 percent from the previous year. Lianhua, Hualian and Nonggongshang have become the largest chain supermarkets in China. E-business and e-sales have also developed rapidly in Shanghai.



List of industries where foreign investments are encouraged
? Agriculture, forestry, animal husbandry, fishery and related industries:
1. Reclaiming and development of wasteland, waste mountain, intertidal zone (except those with military facilities), as well as improvement of low- and medium-yielding fields.
2. Development of new varieties of fine quality, high-yielding crops such as sugar-yielding crops, fruit trees, vegetables, flowers and plants, forage grass and related new techniques.
3. Serialization production of soil-less cultivation of vegetables, flowers and plants.
4. Forestation and introduction of fine strains of forest trees.
5. Breeding of good strains of domestic animals, fowls and aquatic fingerlings (not including special, rare strains of our country).
6. Farming of famous, special and fine aquatic products.
7. New varieties of effective and safe agricultural chemicals and pesticides (over 80 percent insect-killing rate, safe to people, animals and crops).
8. High-concentration fertilizers (potash fertilizer, phosphate fertilizer).
9. Development of new technologies and new products of agricultural films (fiber film, photolysis film, multi-functional film and raw materials).
10. Antibiotic medicinal materials (including antibiotic and chemical synthesis).
11. New medicines for animals, such as anthelmintic, insecticide, anti-coccidiosis, and new varieties of these medicines.
12. Development of feed additives and exploration of feed protein resources.
13. New technology and equipment for the storage, preservation, drying and processing of food, vegetables, fruits, meat products, and aquatic products.
14. Forestry chemicals and new technology and products for the comprehensive utilization of "sub-quality, small and firewood" lumbers and bamboo.
15. Construction and management of key water-control projects. (The Chinese party will be the holding party or play a leading role.)
16. Manufacture of new type of water-saving irrigation equipment.
17. Manufacture of hi-tech agricultural machinery.
18. Improvement and construction of ecological projects.
? Light industry
1. Design, processing and manufacture of molds for non-metal products.
2.Paper pulp (with an annual production capacity of over 170,000 tons and a related raw material base).
3. Post-ornament and processing of leather and manufacture of related high-tech equipment.
4. Production of non-mercury alkali-manganese secondary battery and lithium-ion battery.
5. Manufacture of technologically advanced industrial sewing machines.
6. Production of polyamide film.
7. Production of new-type, highly efficient enzymic preparations.
8. Production of synthetic spices and single-ion spices.
9. Research and popularization of the applied technology of Freon substitution.
10. Production of diacetate for cigarette-making and processing of tows.
? Textile industry
1. Production of wood pulp for textile fiber (with an annual output capacity of over 100,000 tons and accompanied with the construction of a raw material base).
2. Special textiles for industrial use.
3. Printing and dyeing as well as post-processing of high emulation chemical fiber plus materials.
4. Production of assistant, grease, and dye-stuff for textile.
? Transportation and telecommunication
1. Technical equipment for railway transportation: the design and manufacture of locomotives and main parts; design and manufacture of rail facilities and equipment; technologies and manufacture of equipment for rapid transit railways; manufacture of communicational signals and transportation safety monitoring; manufacture of electric railway equipment and instruments.
2. Construction and management of feeder railways, local railways, and related bridges, tunnels, and ferry facilities (wholly foreign-owned enterprises are not allowed).
3. Design and manufacture of new mechanical equipment for highway and port.
4. Construction and management of city subways and light rails (the Chinese party shall be the holding party or play a leading role).
5. Construction and management of highways, independent bridges and tunnels.
6. Construction and management of public dock facilities of ports (the Chinese party shall be the holding party and play a leading role).
7. Construction and management of civil airports (the Chinese party will be the holding party or play a leading role).
8 . Production of the DCS/CDMA equipment.
9. Production of meters for digital serial transmission, phototiming or wireless synchronization of 2.5GB/S and above.
10. Production of metering devices of 2.5GB/S for photo communication, wireless communication and data communication;
11. Production of ATM exchange boards.
? Coal industry
1 . Design and manufacture of coal mining, conveyance and selection equipment.
2. Coal mining and ore-dressing by washing (the Chinese party shall be the holding party or play a leading role in the mining and ore-dressing by washing of special and rare kinds of coal).
3.Production of water-coal and liquefied coal.
4. Comprehensive development and utilization of coal.
5. Comprehensive development and utilization of low-thermal-value fuel and associated resources.
6. Pipe-transportation of coal.
7. Exploration and mining of coal-bed gas.
? Power industry
1. Construction and management of thermal power station with single unit capacity of 300,000 kw and above.
2. Construction and management of hydropower station with the main purpose of power generating.
3. Construction and management of nuclear power station (the Chinese party shall be the holding party or play a leading role).
4. Construction and management of power station with the technology of clean coal-burning.
5. Construction and management of new-energy power station (including solar energy, wind energy, magnetic energy, geothermal energy, tide energy and biological mass energy, etc.).
? Ferrous metallurgical industry
1. Super-power electric furnaces of 50 tons or above (equipped with the ability of external refining and continuous casting) and converters of 50 tons or above.
2. Making of stainless steel.
3. Production of cold-rolled silicon steel tape.
4. Production of hot-rolled or cold-rolled stainless steel plate.
5. Steel pipeline for transmitting petroleum.
6. Processing and treatment of steel scrap.
7. Mining and selection of iron and manganese ores;
8. Production of directly reduced iron and retailored iron.
9. Mining of high aluminum vitriol earth, hard clay and production of grog and clinker.
10. Deep processing of needle coke, hard coke and coal tar.
11. Production of dry-quenching coke.
? Non-ferrous metal industry
1. Production of mono-crystalline silicon (with a diameter of 8 inches or over) and multi-crystalline silicon.
2. Production of hard alloy, tin compound, and antimony compound.
3. Production of non-ferrous composite materials, new-type alloy materials.
4. Mining of copper, lead and tin (wholly foreign-owned enterprise is not allowed.).
5. Aluminum mining (wholly foreign-owned enterprise is not allowed) and production of aluminum oxide (300, 000 tons or more a year).
6. Rare-earth application.
? Petroleum, petrochemical and chemical industries
1. Manufacture of ion film for caustic soda.
2. Ethylene (with an annual production capacity of 600,000 tons or more, and the Chinese party shall be the holding party or play a leading role).
3. Corvic (the Chinese party shall be the holding party or play a leading role).
4. Comprehensive utilization of ethylene side-products such as C5-C9.
5. Engineering plastics and plastic alloys.
6. Supporting raw materials for synthesized materials (bisphenol-A, butadienestyrene latex, pyridine, 4.4' diphenylmethane, diiso-cyan ester, and vulcabond toluene).
7. Comprehensive utilization of basic organic chemical raw materials: the derivatives of benzene, methylbenzene and dimethylobenzene (para-, ortho-, or meta-).
8. Production of synthetic rubber (liquid butadiene styrene rubber by butadiene method, butyl rubber, isoamyl rubber, ethyl rubber, butadiene neoprene rubber, butadiene rubber, acrylic rubber, chlorophydrin rubber).
9. Fine chemistry: new products and technology for dye-stuff, interinediate, catalytic agent, auxiliary and pigment; processing technology for the commercialization of pigments; electronics and high-tech chemicals for paper-making; and production of food additives, feed additives, leather chemical products, oil-well auxiliaries, surface-active agent, water-treatment agent, adhesives, inorganic fiber, inorganic powder stuffing.
10. Chloridized titanium dioxide.
11 . Production of chemical products using coal as raw material.
12. Comprehensive utilization of exhaust gas, discharge liquid and waste slag.
13. Production of depurant for automobile tail gas, catalytic agent and other assistant.
14. Development and utilization of tertiary oil extraction which can increase the recovery ratio of petroleum (the Chinese party shall be the holding party or play a leading role).
15. Construction and management of oil and gas delivery pipelines as well as oil depot and oil wharf (the Chinese party shall be the holding party or play a leading role).
? Machine-building industry
1. Manufacture of high performance welding robot and effective welding and assembling production line.
2. High heat-resistant insulation material (class F, H of insulation) and mould-cast insulation products.
3. Manufacture of equipment for mining, loading and transporting in underground mines; mechanical power-driven dump trucks of 100 tons or over; mobile crusher; excavator of 3,000 cubic meters per hour or over; loading machine of five cubic meters or larger; and full-face tunneling machines.
4. Manufacture of multi-color offset press for web and folio or paper of larger size.
5. Manufacture of cleaning equipment for electro-mechanical wells and production of relevant cleaner.
6. Manufacture of turbine compressor and mixing and graining machine for the complete set of equipment that has an annual productivity of 300,000 tons or over of synthetic ammonia, 480,000 tons or over of urea, or 300,000 tons or over of ethylene (the Chinese party shall be the holding party or play a leading role).
7. Manufacture of whole set of new-type textile machines and paper-making (including pulp) machines.
8. Development and manufacture of precision on-line measuring instruments.
9. Manufacture of new-technology detecting instruments for safe production and environmental protection.
10. New-type meters' spare parts and materials (new switches and functional materials for meters such as intelligent sensors, electrical adapters, flexible circuit plate, photoelectric switches, and proximity switches, and so on).
11. Development center for research and design of major basic machinery, basic parts and important technical equipment.
12. Development of proportional, servo-hydraulic technology and production of low-power pneumatic control valve and stuffing static seal.
13. Production of precision trimming dies, precision cavity modes and matrix standard components.
14. Manufacture of city sewage-disposal equipment of 250,000 tons/day, industrial sewage film treatment equipment, up-flow anaerobic fluidized bed equipment and other biological sewage disposal equipment, slab-making equipment of coal ash (5-10 tons/year), recycling equipment for waste plastics, equipment for desulphurization and denitration of industrial boilers, large high heat-resistant and acid-resistant bag-style dust cleaner.
15. Manufacture of precision bearings and all kinds of special bearings.
16. Manufacture of key spare parts for cars: complete brakes, complete driving rods, gearbox, steering knuckle, fuel pump of diesel engine, piston (including pistoning), valve, hydraulic tappet, axle bush, booster, filter (3-filtering ), constant velocity universal joint, shock absorber, seat adjustor, car lock, backview mirror, glass lifter, compound meter, light, bulb, car fastener.
17. Manufacture of car and motorcycle moulds (including strike moulds, plastics filling moulds, mould-pressing moulds, etc.) and clippers (welding clipper, testing clippers, etc.).
18. Manufacture of cast and forged semi-finished products for cars and motorcycles.
19. Research center for car and motorcycle design and development.
20. Manufacture of vehicles for special purposes such as that used in the desert for petroleum industry.
21. Production of key spare parts for motorcycles: carburetors, magnetors, starting motors, lamps and disc brakes.
22. Manufacture of new-tech equipment for on-line water quality detecting.
23. Manufacture of special facilities for flood prevention and emergency rescue.
24. Manufacture of earth-movers and draining machines for wetland.
25. Manufacture of integrated feed processing equipment with a capacity of 10 tons or more an hour and spare parts.
26. Design and manufacture of new instruments and equipment for petroleum exploration and development.
? Electronic industry
1. Production of large-scale integrated circuit with a line width of 0.35 micron or smaller.
2. Production of new-type electronic spare parts (including slice spare parts) and electric and electronic spare parts.
3. Production of photoelectric components, sensitive components and sensors.
4. Manufacture of large and medium-sized computers.
5. Manufacture of compatible digital TV, HDTV, digital video tape recorders and players.
6. Development of semi-conductor, photo electronic materials.
7. Manufacture of new-type displayers (plate displayers and displaying screens).
8. Development of 3-dimension CAD, CAT, CAM, CAE and other computer application systems.
9. Manufacture of special electronic equipment, instruments, and industrial moulds.
10 . Manufacture of instruments for hydrological data collection.
11 . Manufacture of satellite communication equipment.
12. Manufacture of digital cross-linking equipment.
13. Manufacture of air-traffic-control equipment (wholly foreign-owned enterprise are is allowed).
14. Development and manufacture of high-capacity mass storage of laser disks and disks, and parts.
15. Development and manufacture of new-type printing devices (laser-printers, etc.).
16. Manufacture of multi-media systems of data communication.
17. Production of single-mode optical fiber.
18. Manufacture of equipment for cut-in communication system.
19. New-technical equipment supporting communication network.
20. Manufacture of ISDN.
? Industries of building materials, equipment and other non-metal mineral products
1. Production line of fine-quality floating glass with a daily melting capacity of 500 tons or over
2. Production line of high-level sanitation porcelain with an annual production of 500,000 pieces as well as auxiliary hardware and plastic parts.
3. New building materials (materials for wall, decorating and finishing materials, water-proof materials, and thermal insulation materials).
4. New-type dry-processing cement production line with a daily output capacity of 4,000 tons or more (in the mid and west regions only).
5. Bulk cement storage and shipping facilities.
6. Production line of glass fiber (through direct melting process) and glass fiber reinforced plastics with an annual capacity of 10,000 tons or more.
7. Production of non-organic, non-metal materials and products (quartz glass, artificial crystal).
8. Production of high-class refractory material used in furnaces for glass, ceramics and glass fiber.
9. Deep-processing technique for plate glass and manufacture of equipment.
10. Manufacture of tunneling machine, equipment for covered digging of city metro.
11 . Manufacture of special equipment for urban sanitation.
12 . Manufacture of machine for tree-transplant.
13. Manufacture of machines for road smoothening and repairing.
? Medicine industry
1. Chemical medicines under Chinese patent and administrative protection, medical intermediate specially used in medicine which have to be imported.
2. Analgesic-antipyretic produced through new-technical equipment.
3. Vitamins: niacin.
4. New-type anti-cancer medicines and those for cardio-vascular diseases.
5. Medicines and pharmaceutics: new products and new forms of drug produced by means of slow release, controlled release and target-preparation, and those absorbed through skins.
6. Amino acid: serine, tryptophan, histidine, etc.
7. New-type wrapping materials and containers and other advanced pharmaceutical equipment.
8. New, effective and economical contraceptive medicines and devices.
9. New technology, equipment and instruments that control the quality of traditional Chinese medicine and change the packaging;
10. New analytical and extraction technology and equipment for the examination of the effective part of traditional Chinese herbal medicines.
11. New medicines which are produced by means of biological engineering technology.
12. Development and utilization of new-type adjuvant.
13. Production of diagnosis reagent for hepatitis, AIDS, and radio-immunity diseases.
? Medical equipment industry
1. Medical X-ray machine set with medium-frequency, using computer-controlled technique and digital imagery processing technology.
2. Electronic endoscopes.
3. Tubes for medical use.
? Aerospace industry
1. Design and manufacture of civil planes (the Chinese party shall be the holding party or play a leading role).
2. Manufacture of spare parts for civil planes.
3. Design and manufacture of aeroplane engines (the Chinese party shall be the holding party or play a leading role).
4. Manufacture of air-borne equipment.
5. Manufacture of light gas turbine engine.
6. Design and manufacture of civil satellites (the Chinese party shall be the holding party or play a leading role).
7.Manufacture of civil satellite payload (the Chinese party shall be the holding party or play a leading role).
8. Manufacture of spare parts for civil satellites.
9. Development of the application technique of civil satellites.
10. Design and manufacture of civil carrier rockets (the Chinese party shall be the holding party or play a leading role).
? New industries
1. Microelectronic technology.
2. New materials.
3. Biological engineering (excluding genetic engineering).
4. Technologies for information network and communications system.
5. Technologies of isotopic irradiation and laser.
6. Ocean and ocean-energy development technology.
7. Seawater desalting and utilization technology.
8. Energy-saving technology.
9. Technology for recycling and comprehensive utilization of resources.
10. Projects for improving polluted environment and related monitoring and improving technology.
? Service industry
1. Information consultation on international economy, science & technology and environmental protection.
2. Maintenance and after-sale service of precision instruments and equipment.
3. Construction of high-technology and new-product development centers as well as incubation of enterprises.



Foreign investors enjoy following preferential taxation policies in the Pudong New Area:
1. A foreign-invested production-type enterprise in the Pudong New Area shall pay business income tax at a rate of 15 percent.
2. A foreign-invested production-type enterprise in the Pudong New Area which has an operational period of 10 years or more shall be exempt from enterprise income tax for two years beginning from the first profit-making year, and then enjoy a 50 percent reduction from the third to the fifth year.
3. A foreign-invested "technologically advanced enterprise" in the Pudong New Area shall pay income tax at a rate of 10 percent for three years after the expiration of the prescribed tax exemption and reduction period. An export-oriented foreign-invested enterprise, whose export value makes up more than 70 percent of their output value in the year, shall enjoy a reduced enterprise income tax rate of 10 percent after expiration of the prescribed tax exemption and reduction period.
4. A foreign-invested enterprise related to port, energy and transportation projects in the Pudong New Area shall pay enterprise income tax at a rate of 15 percent. If the said enterprise has an operating term of 15 years or more, upon its application and approval from the taxation office, it shall be exempt from enterprise income tax for five years beginning from the first profit-making year, and then enjoy a 50 percent reduction from the sixth to the 10th year.
5. Whereas a foreign-invested enterprise builds or buys real estate for its own use within the Pudong New Area, it shall be exempt from the property tax for five years beginning from the month of completion or purchase.
6. Financial institutions including foreign banks or Sino-foreign joint ventures established in the Pudong New Area whose capital from the foreign investor or the operation fund of the branch allocated by the headquarters totals US$10 million or more and which have and operating term of 10 years or longer, upon approval, shall pay enterprise income tax at a reduced rate of 15 percent. Such banks shall be exempt from enterprise income tax in the first year of profit-making and then enjoy a 50 percent reduction for the following second and third years.
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