According to the Shanghai Municipal Government Work Report delivered by Mayor Gong Zheng on January 15, 2025, Shanghai’s economy was estimated to grow by approximately 5% in 2024, making it the first city in China to surpass a regional gross domestic product (GDP) of 5 trillion yuan. In recent years, Shanghai has embraced its strategic role in building a modern socialist international metropolis with global influence. The city has been actively advancing the development of the Five Centers (referring to the international economic, financial, trade, shipping centers as well as a sci-tech innovation center with global influence), enhancing the Four Functions (referring to functions of global resource allocation, technological innovation leadership, high-end industry leadership, and open hub gateway), and strengthening the Five Types of Economy (referring to innovation-driven economy, service-oriented economy, open economy, headquarters economy, and traffic-driven economy). While the high-end service sector continues to expand in size and gain momentum in capabilities, Shanghai is also prioritizing the recovery of its industrial share, ensuring stable industrial investment, and steadily boosting its overall strength and global influence. These efforts have made a significant contribution to both local economic progress and China’s broader economic growth. To further drive high-quality development and fully play its leading and exemplary role in advancing Chinese modernization, Shanghai will enhance its functions as a central hub in domestic circulation and a strategic bridge between domestic and international dual circulations by tapping into new growth drivers through innovation, optimizing resource efficiency, expanding development capacity, and fostering deeper integration between internal and external economic dynamics.
First, in response to profound shifts in the global trade landscape, Shanghai — China’s gateway to high-level opening-up and a key hub where international and domestic trade converge — will benchmark against high-standard global economic and trade rules. The city will closely align its domestic-foreign trade integration pilot program with its efforts to establish a global trade and consumption hub. It will cultivate new external growth drivers by upgrading and optimizing goods trade, establishing new service trade development mechanisms, and advancing digital trade, aiming to set a benchmark for further deepening reform and opening-up nationwide. 
Second, in driving the shift from old to new growth drivers, Shanghai will embrace the trends of technological revolution. It will actively foster strategic emerging industries with advanced technologies and solid industrial foundations, while proactively positioning itself for future industries. The city will strengthen the development of application scenarios and fully leverage the power of the international consumer market, fueling the growth of future industries and the formation of industry clusters. At the same time, Shanghai will accelerate the transformation of traditional industries, guiding them toward digitalization, intelligence, and sustainability. This will help effectively generate and shape consumer demand, while boosting the competitiveness and long-term sustainability of traditional sectors.
Third, in terms of coordinated regional economic development, Shanghai will continue to accelerate the construction of the “Five Centers,” enhancing its influence and driving power across the Yangtze River Delta and the broader Yangtze River Economic Belt. The city will expand its role in supporting the integration of the Yangtze River Delta, steadily improving the level and efficiency of regional high-quality development. In doing so, Shanghai will make significant contributions to the overarching strategy of regional coordination, collaborative growth, and shared prosperity.
Fourth, in response to the social challenges posed by an aging population, Shanghai will take a holistic approach, considering the specific needs of the elderly in urban planning, infrastructure development, and public services, with the goal of creating an age-friendly urban environment. At the same time, the city will actively promote the growth of the elderly care industry, champion innovation in care models, and enhance the quality and efficiency of services. Shanghai will offer referenceable experience and set a demonstration for other cities in the country in building aging-friendly cities and developing large-scale, standardized, clustered, and branded healthcare and elderly service industries.
The author is Zhan Yubo, Researcher, Institute of Economics, Shanghai Academy of Social Sciences.