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Press Release for Media Briefing of the Shanghai Municipal Government on September 28, 2020

September 30, 2020

“Quality Development, Quality Life” Series Municipal Government Press Conference—Pudong New Area

The Information Office of Shanghai Municipality held the 16th “Quality Development, Quality Life” Series Media Briefing today (September 28), during which Weng Zuliang, member of the Standing Committee of the CPC Shanghai Committee and Secretary of the CPC Pudong New Area Committee, introduced the economic and social development of Pudong New Area in recent years. Hang Yingwei, Deputy Secretary-General of the Shanghai Municipal Government, Deputy Secretary of the CPC Pudong New Area Committee and district chief, Wu Qiang, deputy chief of Pudong New Area, Yang Chao, deputy chief of Pudong New Area, and Li Lisheng, director of Pudong New Area Development and Reform Commission attended the press conference and jointly answered questions from reporters.

This year is the last year of building a well-off society in an all-round way and the 13th Five-Year Plan period. It also marks the 30th anniversary of the development and opening-up of Pudong. In the past 30 years, under the strong leadership of the CPC Central Committee as well as the CPC Shanghai Committee and Shanghai municipal government, Pudong has persisted in daring to try, pioneering, and building a modern new city with concentrated functions, complete elements, and advanced facilities on a piece of farmland. In 2019, the area’s GDP reached 1.2734 trillion yuan, with a per capita GDP of US$33,200. It’s created 1/80 of the country’s GDP and 1/15 of the total import and export of goods within an area of ??1/8,000 of the country’s total, making it an important symbol of the country’s reform and opening-up and the epitome of Shanghai’s modernization. Since the beginning of this year, in the face of the sudden COVID-19 epidemic, Pudong has coordinated the relationship between epidemic prevention and control and economic and social development. The district solidly carried out plans to ensure “six priorities” and stability in six areas for steady economic momentum. The district’s economy managed to counter the impact and showed strong resilience, with main economic indicators staging a steady recovery and accelerated improvement. From January to August, the number of Pudong’s newly established enterprises increased by 32.8% year on year, realized foreign investment increased by 4.7%, output value of industrial companies above designated size increased by 7.3%, out value of strategic emerging manufacturing industry increased by 21.5%, social fixed asset investment increased by 12.4%, industrial investment increased by 22.4%, and total imports and exports of goods increased by 0.9%.

The CPC Central Committee always paid close attention and gave priority to the development and opening-up of Pudong. Based on a new starting point, the promotion of high-level reform and opening-up is the core mission assigned to Pudong by the CPC Central Committee and a major responsibility that Pudong must shoulder for its future development. Looking back at the past, reform and opening-up as well as innovation have always been the distinctive features and valuable experience of Pudong’s development. Looking forward, Pudong will become the country’s the window of opening-up to further bolster the nation’s strength, as well as a highland featuring a wide range of functions and a governance model.

Standing up on the tide of opening-up, and comprehensively deepening the construction of the pilot free trade zone

Openness is Pudong’s innate mission and greatest characteristic. In recent years, Pudong has been guided by the construction of the Pilot Free Trade Zone and the Lingang New Area, constantly improving the level of openness, and striving to create a frontier window for all-round openness.

First, take the lead in exploring institutional openness. Since the establishment of the Pilot Free Trade Zone, Pudong has adhered to system innovation as the core, eyed the highest standards and the best standards, boldly experimented, ventured, and independently reformed, by focusing on investment, trade, finance, as well as interim and ex-post supervision. The district took the lead in constructing internationally accepted regulatory systems, and formed a batch of basic and core system innovations such as the negative list of foreign investment, the “single window” for international trade, free trade accounts, and separation of licenses and permits. A total of 328 system innovations have been replicated and promoted throughout the country.

Second, continue to expand the areas for opening-up. Pudong has accelerated the expansion of opening-up fields from manufacturing to service industries and from trade in goods to trade in services. It took the lead in launching 2 batches of 54 measures to expand the opening-up, attracting over 3,300 companies to settle down, and achieving a number of first national projects in 55 areas including wholly foreign-owned public funds, automobile manufacturing, and vocational skills training. At the same time, it vigorously developed high value-added trade formats such as offshore trade, entrepot trade, and cross-border R&D service outsourcing.

Third, strengthen the functions of global resources allocation. Based on two markets and two types of resources, Pudong continuously improved its global influence on the allocation of capital, information, technology, talent, and goods. In terms of finance, the focus was on increasing the depth of participation of overseas institutions and foreign-funded institutions and the richness of international financial products. In terms of trade, the focus was on strengthening transaction settlement functions, supply chain management functions, as well as the functions to lead consumption upgrading. In terms of shipping, the focus was on strengthening international transit functions and high-end shipping service functions. At the same time, the district accelerated the development of a higher-level headquarters economy. There are 348 regional headquarters of multinational companies in Pudong. Since the beginning of this year, the headquarters of state-owned enterprise, foreign-funded companies, and private enterprises such as CSSC, Sinochem, Minsheng Securities, and Costco, have settled down in Pudong. Volvo Construction and Dassault Systèmes have moved their Asia Pacific headquarters from Singapore and Japan to Pudong. Hema established its global headquarters in Pudong.

2. Play the strong tune of reform and be a pioneer in comprehensively deepening reform

Since Pudong launched a comprehensive pilot reform package, it has been stepping up efforts to explore in comprehensively deepening reforms. In recent years, Pudong has focused on creating a world-class business environment, deepening the reform of “streamlining management, delegating power, and improving services” to continuously improve the sense of gain and satisfaction of enterprises.

First, promote the zeroization of approval costs. On the basis of taking the lead in launching the reform of “separation of licenses and permits”, the district further explored the pilot of “one industry, one license”, and shifted the focus of reform from “department-centered” single items to “enterprise-centered” tasks. Multiple approval items that are involved in the access to an industry have been integrated to a piece of “industry integrated permit”. At present, it has fully covered 43 district-level industries, as the overall time needed for approval has been reduced by nearly 90%, application materials have been reduced by nearly 70%, and form factors have been reduced by more than 60%. The next step is to strive for more breakthrough in the deregulation of national and municipal power.

Second, create a new Pudong speed. Last year, the district created the “Tesla Speed”, and it took only half a year from signing the project to the start of construction. This year, “Sam’s Speed” was created again, as it took only 76 days for Sam’s Club flagship store to settle down in Waigaoqiao Free Trade Zone. For government-funded investment projects, Pudong has explored the “five-permit” coordination mechanism for land, building, water, forest, and greenery to shorten the land banking period of major municipal and district projects from more than 730 days to less than 295 days. A batch of major projects have realized land banking, project initiation, approval and start of construction within the same year.

Third, optimize Pudong services. Pudong has always promoted the development of new models, new business formats, and new industries with the concepts of inclusion and prudence. It emphasized the judgement on values rather than technology when it comes to enterprises’ demand for innovative business models. It established a “non-veto” mechanism at the service windows, in a bid to strive to help solve problems. These measures have significantly promoted the rapid development of new models and new business formats such as Hema Fresh and Dingdong Maicai. At present, the district is leveraging the unified online government services to improve the level of intelligent services. It took the lead to adopt remote identity verification in the registration and establishment of enterprises to help companies complete all processes online. Especially during the epidemic, it has effectively reduced the flow of people on site and lowered cross-infection risks. By establishing exclusive corporate and individual webpages, the district can detect needs in a smart way, precisely push policies, and proactively remind companies to deal with relevant affairs.

3. Be a pioneer in innovation and promote high-quality economic development

As the core carrier for the construction of Shanghai Science and Technology Innovation Center, Pudong insisted on the overall promotion of scientific research, technological innovation and industrial development, and accelerated the construction of a modern economic system.

First, strengthen the leading functions of science and technological innovation. Efforts were made to consolidate the richness of basic research, and a batch of world-class science facilities such as Shanghai Synchrotron Radiation Facility and the National Protein Center were built from scratch to continuously improve the concentration and visibility of Zhangjiang Comprehensive National Science Center. The district focused on building a platform for the development of various innovative entities, including well-known universities such as ShanghaiTech University, and the Shanghai Research Institute of the University of Science and Technology of China, as well as high-level scientific research institutions such as Zhangjiang Laboratory and Li Zhengdao Research Institute. Pudong’s high-tech enterprises and foreign R&D centers accounted for a quarter and more than a half of the city’s total respectively. Sixteen companies were listed on the Sci-tech Innovation Board, accounting for 59% of Shanghai’s total and 9% of the country’s total. A total of 76 national science and technology awards have been won since 2010, including 4 grand prizes and 3 first prizes.

Second, strive to create a first-class innovation ecosystem. The district constructed the “four major systems.” It built a full-life cycle innovation incubation system, with 166 various types of incubation institutions, forming a complete incubation chain from “nurseries” to “incubators” to “accelerators”. The district built a full-chain science and technology public service system, and established 190 science and technology public services platforms, which can effectively reduce the cost of innovation and entrepreneurship for small-, medium- and micro-sized enterprises. It built a comprehensive intellectual property protection system and established platforms such as the China (Pudong) Intellectual Property Rights Protection Center to help enterprises quickly obtain rights, quickly confirm rights, and quickly protect rights. The district built a full-coverage technology investment and financing system, and promoted the development of enterprises through the establishment of science and innovation fund of funds and small and micro enterprise credit enhancement funds, pilot projects of intellectual property rights securitization, and construction of the Yangtze River Delta capital market service base.

Third, focus on building innovative industrial clusters. The district accelerated the development of six hard-core industries including chips, innovative drugs, smart manufacturing, environmental protection, automotive, and data. In particular, it focused on breakthroughs in the three strategic areas of integrated circuits, biopharmaceuticals, and artificial intelligence. In the field of integrated circuits, Pudong has become the area with the most concentrated industry, the highest level of comprehensive technology, and the most complete industrial chain in China. In 2019, the scale of the integrated circuit industry in the district exceeded 120 billion yuan, accounting for 71.5% of Shanghai’s total and 16.1% of the country’s total. In the field of biopharmaceuticals, Pudong has produced 15% of the country’s original innovative drugs and 10% of innovative medical devices. In 2019, the industrial scale reached 77 billion yuan, accounting for 46% of the city’s total. In the field of artificial intelligence, Pudong is the first national pioneering area for the innovation and development of the artificial intelligence industry. The number of artificial intelligence companies accounts for 1/3 of the city’s total, and the industrial scale accounts for 1/2 of the city’s total. It has basically formed a complete industrial chain with an infrastructure support layer, a software algorithm layer, and an industry application layer. Especially, Zhangjiang Artificial Intelligence Island has become a landmark AI destination among netizens.

4. Break new paths of governance and continuously improve governance modernization

Pudong adhered to the implementation of the important concept of the ‘People’s City’, seized the opportunities of intelligence, and continuously improved the scientific, refined, and intelligent governance.

First, strengthen intelligent governance. In 2017, Pudong took the lead in establishing an urban transportation center and building an intelligent “urban brain”. On this basis, the three governance platforms of urban governance, economic governance, and social governance have been further constructed, and a batch of practical intelligent application scenarios have been developed, which has effectively improved the supervisory services capabilities. At present, in accordance with the city’s requirements on unified online government services, the district is exploring the construction of a governance system that integrates economic governance, social governance, and urban governance, while integrating multiple intelligent application scenarios in one field, connecting three governance platforms, strengthening departmental linkage, improving governance efficiency, and upgrading from intelligence to smartness. At the same time, the district explored the construction of “urban management micro-platforms” and “community-village joint stations” to improve the perception, control, and capability in grassroots governance.

Second, improve “door-step” services. In 2017, Pudong took the lead in launching the construction of the “door-step” service system, which has now covered all villages. All 212 community service items can be handled at the “door step”, and the village-based “door-step” service centers have achieved full coverage of “four stations and one room”. In the next step, the district will continue to improve service efficiency in accordance with the needs of the people, and strive to achieve “the little things can be done without leaving the village, and education services are available nearby.”

Third, create quality people’s livelihood. The district adhered to the principle that “if financial strength increases, there will be improvement in people’s livelihood”. It accelerated the promotion of social undertakings from being “balanced” to “high-quality”. In terms of education, 670 schools in basic education stages have been built, and 11 city-level experimental high schools have been established. In terms of healthcare, the district has 15 top-tier (Grade 3) hospitals. This year, four hospitals including Gongli Hospital, Pudong Hospital, People’s Hospital, and Zhoupu Hospital have achieved the upgrading from Grade 2 to Grade 3. In terms of elderly care, a batch of large-scale elderly care institutions are deployed in the “east, west, south, north and middle” parts of the districts. Services such as meals for the elderly are available at “door-step” service stations to meet the diverse needs of the elderly. In terms of culture, landmark cultural facilities such as Shanghai Library’s east branch, Shanghai Museum’s east branch, Grand Opera House, Pudong Art Museum, and Pudong Football Stadium will wrap up construction, in a bid by the district to create an international cultural living room.

Thirty years after the opening-up and reform, Pudong is now standing at a new starting point. Facing the future, Pudong is determined to become a leading demonstration zone for high-level reform and opening-up in the new era. Facing the world, Pudong is determined to participate in international cooperation and competition on behalf of the country. Facing the current situation, Pudong is determined to take the lead in creating the central hub of the domestic economic cycle and a strategic link in the dual circulation pattern with both domestic and international economic cycles. Pudong is determined to become a benchmark, dare to be a pioneer, strive to create a new miracle of reform and opening-up in the new era, and make new and greater contributions to the realization of the “two centenary” goals.