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News material for Shanghai government’s press conference on May 7, 2018

May 08, 2018

The Shanghai government held a press conference today (May 7), at which Chen Mingbo, director of Shanghai Economy and Information Commission, introduced a plan on developing the brand of “Shanghai manufacturing” and pushing Shanghai into a world leading manufacturing city. Wu Jincheng, deputy director of the commission, Xie Dong, deputy director of Shanghai Financial Services Office, Fu Guoqing, chief engineer at Shanghai Science and Technology Commission, and Lu Min, chief engineer at the Shanghai Municipal Bureau of Quality and Technical Supervision, also attended the conference and answered questions from journalists.

Manufacturing is the key factor to show a city or a region’s overall competitiveness and it bolsters the place’s economic development. On April 22, the Shanghai municipal party committee and government released the plan to build up “Shanghai manufacturing” brand and speed up efforts into a world leading manufacturing city between 2018 and 2020. Echoing the spirits in Shanghai Party Secretary Li Qiang and Major Ying Yong’s speeches on April 24, which calls for the overall development of Shanghai’s four brands covering Shanghai services, Shanghai manufacturing, Shanghai shopping and Shanghai culture, the city is sparing no efforts to implement the tasks and realize the targets as soon as possible.

I Content of “Shanghai manufacturing” and plans to develop it

“Shanghai manufacturing” has a valued reputation in history. Coming into the new era, however, Shanghai needs to inherit the spirits in traditional industrial development while establishing new strategic plans to echo China’s further steps in reform and opening up. And that will revitalize manufacturing in Shanghai by adding new content to echo the new era’s requirement. To conclude, “Shanghai manufacturing” is to master advanced manufacturing that plays central role in the industrial and value chains, which meets various needs and high quality standards required by the market, which boosts smart manufacturing by combining artificial intelligence and industrial internet, which fosters green manufacturing by optimizing the use of resources. The plan has three main aspects.

First, to better serve China’s manufacturing strategy. “Shanghai manufacturing” is proposed to bolster China’s aim into a strong manufacturer from a big manufacturer by enhancing development of manufacturing and industrial internet, which meanwhile boosts the revitalization of manufacturing in Shanghai. Shanghai will not only speed up development of high-tech industries to compete globally as a national manufacturing leader, but also will nurture a host of selected goods and brands to lead market trends.

Second, to speed up innovation. Innovation is the first drive of development, but manufacturing is the basis of Shanghai’s efforts into a global innovation hub as it is the source of the city’s innovation. The city will speed up innovation by industrializing and commercializing scientific results, which will help foster new technologies and industries and revive and upgrade existing ones.

Third, to revive the brand image of Shanghai manufacturing and deepen reforms and opening up. Shanghai will take a more active role to deepen reform and opening up, making better use of resources worldwide to keep improving quality of products and technologies developed in Shanghai. The city will use the development of “Shanghai manufacturing” as a drive of product quality and life quality, which boosts the improvement of design, quality, standard and services of Shanghai-based manufacturing brands.

II Key points and key measures of the action plan

The action plan mainly proposes 10 special actions including four core actions and six innovative areas. The four core actions include famous brands, enterprises, professionals and demonstration zones. Shanghai will also focus on six areas including technology innovation, brand creation, high quality product, integration and innovation, industry cluster and green initiative to carry out the work.

First, the city will use famous brands as a starting point to enhance Shanghai’s city image. Through digging deep into the market demand and potential, especially for demand in the area of healthcare, fashion, intelligent device, the city will strive to create 500 products which are related to Shanghai manufacturing. First, the city will improve its brand effectiveness in order to promote Shanghai manufacturing at home and abroad. To be more specific, the famous brands will be divided into three levels. With the use of new technologies, new models and new mechanisms, the classic brands such as Lao Feng Xiang and Threegun underwear brand will have new validity. The city will accelerate the development of emerging brands such as Shanghai United Imaging Healthcare Co and Shanghai carmaker NIO. Second, the city will speed up the development of core technology. The city will strive to develop its key technologies. Shanghai will focus on break through bottleneck in the field of integrated circuits, airplane engines and other areas. The city will form a number of key brands and products with independent intellectual property rights and core technologies. Third, the city will form quality standards as the first priority and set the benchmark for Shanghai manufacturing which focus on quality in China. The city will fully carry out quality improvement action and launch a batch of products which meet Shanghai quality certification and leading standard in the manufacturing sector. Fourth, Shanghai will implement the plan for technology improvement and vitality of industrial development. The city will promote the industry upgrade of intelligent device and service and expand the application of new workflow, new material and new equipment.

Second, the city also plans to cultivate leading enterprises and a number of new companies in the field of Shanghai manufacturing. The city will better allocate the resources and serve the companies. These leading enterprises will include world-class companies, unicorn companies and hidden champion firms. First, the city will further enhance the influence of world-leading enterprises. The city will build an innovation, production and service network and accelerate the application of a new generation of intelligent manufacturing. With leading enterprises engaged, the city will build 20 industrial Internet platforms. The government seeks to have three manufacturing companies on the list of the world’s top 500 enterprises. Second, the city will encourage the development of unicorn companies to further enhance the innovation capability of Shanghai manufacturing. The city will focus on areas such as intelligent device, bioscience and health, new energy cars and intelligent connected vehicles. Shanghai will also encourage enterprises to improve innovation in terms of technology and business model. About eight to ten unicorn companies are expected to be established and cultivated in manufacturing sector. Third, the city will further cultivate more hidden champion firms. The city will guide companies to focus on the research and development, manufacturing and market expansion of products. The city will strive to form 200 hidden champion firms which are the top three companies in the segment at home and abroad.

Third, the city will use famous professionals as a linkage to gather more resources in the field of Shanghai manufacturing. Talent is a primary resource for industrial development. The city is set to focus on bringing together a team of manufacturing talent led by outstanding scientists, entrepreneurs, and craftsmen. First, the city will speed up implementation of projects to bring together leading talents. For key areas such as integrated circuits and computing science, brain science, and artificial intelligence, Shanghai will continue to introduce and cultivate talent and implement tailor-made policies. Second, a group of Shanghai engineers and Shanghai masters will be cultivated. The city will focus on supporting talents in the field of engineering and industrial application and strengthening related services such as housing and settlement. Third, the city will carry forward spirit of entrepreneurship and craftsmen to achieve the best use of human resources. Aiming at the forefront of science and technology and emerging industries, the city will gather a group of outstanding scientists and promote the spirit of entrepreneurship, innovation and craftsmanship.

Last but not least, the city will use demonstration zones as new carriers for Shanghai manufacturing. Faced with the constraints of land resources, the city aims at centralized utilization and efficient allocation of resources. Shanghai will accelerate the development of world-class demonstration zones and industrial bases. First, the city will cultivate world-class demonstration zones in order to better allocate the resources. The city will promote Lingang, Caohejing, Zhangjiang, chemical industry zone and Shanghai International Automobile City to build demonstration zones in order to optimize the increment, revitalize inventory, activate traffic and build a number of green demonstration parks.

Second, the city will create industrial landmarks and form regional brands. Shanghai will accelerate the city’s industrial map-making, guide the differentiation and precise positioning. The city will promote the secondary development of land use. The city will accelerate the transformation of five key areas including Wujing, Gaoqiao, Nanda, Wusong, and Taopu. Third, the city will create world-class manufacturing industrial clusters. Efforts will be made to build two world-class industrial clusters for automobiles and electronic information. The city will actively cultivate four world-class industrial clusters of commercial aviation, bioscience and health, high-end equipment and green chemical industry. In addition, it is necessary to strengthen the linkage of industrial clusters in the Yangtze River Delta and deepen the cooperation in the field of intelligent and connected vehicles, industrial Internet, 5G and other industry chains.

III Overall mechanism and goal of Shanghai manufacturing

In order to implement the overall requirements of the municipal party committee and the municipal government, Shanghai has broken down the action plan into 95 specific tasks. The city worked closely with the relevant party committees, offices, districts, parks, enterprises and other social parties to divide their work according to their responsibilities. The city will strive to better use its strategies and advantages of Shanghai manufacturing.

First, the city will focus on the layout of key industries. Shanghai will focus on industries in the vanguard such as information and technology, aerospace and oceanography. The city plans to accelerate development of strategic emerging industries such as commercial aviation, bioscience and health. Shanghai will not neglect its traditional industries such as automobile and chemical. Currently, the city is speeding up the formulation of action plan for the development of integrated circuits and civil aviation industries and promoting the development of the industrial chain and innovation chain.

Second, the city will focus on optimizing the coordination and promotion mechanism. Shanghai will intensify overall coordination safeguard measures proposed in the action plan including opening up, institutional supply, land resource, integration of industry and finance as well as brand promotion. In the near future, Shanghai will speed up the launch of supporting policies to revitalize the historical classic brand and foster high-growth innovative companies.

Third, the city will focus on targeting and continuing efforts. In the next three years, three sub-targets will be set to accelerate the construction of a world leading manufacturing city. By 2020, the city will strive to become a world-class city in terms of emerging industry development, advanced manufacturing clusters and manufacturing brands gathering place.

For Shanghai manufacturing, the most important things are key technologies, high-end industrial clusters and high-quality products. The city will further promote four core actions to make Shanghai manufacturing better and stronger. With the development of six key areas, the city will further enhance its economic development quality and efficiency. The city is going to achieve more advanced, smarter production, higher-end products and famous brands.

Appendix: Q & A by the Shanghai Planning, Land and Resources Administration

Q: As mentioned in the Three-Year Action Plan, efforts will be made to optimize the allocation of land resources for technologically advanced manufacturing companies while land parcels designated for such uses will be protected as carefully as how arable land has been treated. So could you elaborate a bit on what specific measures will be deployed to accomplish that target?

A: Technologically advanced manufacturing industry is of great significance to the national strategy and remains one of the core functions of Shanghai as the city moves toward a metropolis with global excellence. In line with the positioning of Shanghai under its “2035 Master Plan” and to build “Shanghai Manufacturing” into a renowned brand, we have proposed to establish industrial bases boasting the country’s highest production levels. For land parcels designated for technologically advanced manufacturing purposes, we will carefully protect and efficiently utilize them, just as what we do to protect and utilize arable land and basic farmland.  

In terms of management, a “double lockup” strategy will be deployed. From the planning perspective, land pieces designated for technologically advanced manufacturing purposes will be locked up within industrial bases with strict restrictions imposed on land use adjustment. From the land supply perspective, meanwhile, newly added industrial projects will be locked up within industrial bases and communities.  

Q: The “2035 Master Plan” has drawn a new blueprint regarding the overall size and layout of industrial purpose land parcels around the city. As mentioned in the Three-Year Action Plan, appropriate size of land parcels designated for industrial uses will be retained while layout will be planned carefully to ensure enough room for the future development of technologically advanced manufacturing industries. So how will we do to help build “Shanghai Manufacturing” into a renowned brand in terms of the land layout? 

A: It remains our all-time commitment to ensuring the size of land bank designated for industrial purposes so as to boost the development of technologically advanced manufacturing industries. In the “2035 Master Plan,” we have raised the size and quality of the land bank in various fields. In terms of size, along with the general positioning of the city’s function, we have planned to have 550 square kilometers of industrial lands by 2020 and 320-480 square kilometers by 2035. In terms of layout, a three-tier system -- industrial bases-industrial communities-fragmented industrial land parcels -- will be deployed to optimize industry planning and layout. In terms of magnitude, the plot ratio of land parcels designated for industrial purposes may be raised to 2.0 and that of land pieces designated for research and development purposes can be increased to 3.0. Their plot ratios might also be adjusted by referring to that of office and commercial projects in the same area. The plot ratio of newly released land plots for industrial purposes can be set during the administrative procedures that construction projects are required to go through while the raise of plot ratio for existing industrial plots can be completed through simplified procedures on a district-by-district basis.

Q:Against the broad background of restrained natural resources and environmental constraints, Shanghai should have a good plan in building up its “Shanghai Manufacturing” brand – being very efficient and making good use of its limited land for industrial purpose. My question is that how to make efficient usage of Shanghai’s land for industrial purpose during the city’s construction of “Shanghai Manufacturing” brand?

A: We will make full use of the land’s full life cycle management to better use the land for industrial purpose and raise its efficiency. The land’s full life cycle management refers to coordinated supervision and administration by multiple departments over all factors and procedures. Based on the land contract, it includes all factors, like input, output, energy saving, environmental protection and job creation, into management.

In the land’s full life cycle management, there are several key points: one is strict industrial access. Shanghai will guarantee industrial development through high-quality land supply with matched investment projects. We will stick to the principle of coordinated industrial development, making average efficiency the bottom line for future industries. We will also stick to unified standards in selecting projects that can ensure management of all factors and then significantly improve quality of projects. Second is strict evaluation and exit mechanism for land. During the whole process of using land for industrial purpose, Shanghai will conduct evaluation every three to five years to gauge the efficiency of the project and based on that, to decide whether or not let the low-efficient land exit. Third is strict supervision and management. Shanghai will stress the major responsibility of the government in managing the land for industrial purpose. On the principle of “who raises the proposal, who takes the responsibility of managing,” Shanghai will strengthen supervision of fulfilling the contract and evaluation based on full life cycle management to improve the overall efficiency of land used for industrial purpose.