上海市长徐匡迪在财富论坛上就上海的发展的讲话

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Mayor Xu Kuangdi Discusses Shanghai's Growth 上海市长徐匡迪在财富论坛上就上海的发展的讲话 Distinguished Participants and Guests, Ladies and Gentlemen,     It is a great honor for Shanghai to be chosen by the FORTUNE Global Forum as the venue for its annual meeting and to have so many CEOs of renowned international corporations, important personages from the political circles, specialists and scholars at this grand meeting. Here I would like to extend, on behalf of the Shanghai Municipal People's Government and the 13 million local citizens, warm welcome to all the distinguished guests present.     The FORTUNE Global Forum is holding this annual meeting in Shanghai at a time when the People's Republic of China jubilantly celebrates her 50th anniversary. Over the past half a century, earth-shaking changes have taken place in this country under the leadership of the Communist Party of China. As a member of the big family of the socialist motherland, Shanghai has also scored brilliant achievements in its development. Since the start of reform and opening up, in particular, Shanghai has, seizing the historical opportunity of Pudong development and opening up and with great enthusiasm and in the spirit of seeking truth, being pragmatic and being bold in making innovations, made exploration in the establishment of a new system of socialist market economy and quickened its pace of building infrastructure. It has made firm steps toward its goal of becoming a modern economic center.     Now, please allow me to brief you on the development of Shanghai since the start of the 1990's. Sustained Rapid Economic Growth.     Shanghai's GDP growth averaged 12.6 % annually from 1992 to 1998 and it is expected to hit 10% this year. In 1998, the city realized a GDP of 368.8 billion yuan, with per capita exceeding 3,400 USD, calculated at the current exchange rate. Stronger Service Sectors.     The tertiary industry with finance, commerce, trade, transportation, communications and real estate as its major sectors is fast rising, which is a powerful driving force behind the economic growth of the city. Today, the industry contributes equally with the secondary industry to the economic growth and in terms of the size of work force employed the two are also about the same. The import and export through the port of Shanghai accounts for about one fifth of the nation's total. There are 2, 450 financial institutions in the city, of which 62 are foreign ones and among them 19 are engaged in RMB business with approval. And the city is a major trading center now, where a number of markets including securities, foreign exchange, technology and metals have taken shape and their business operations cover all parts of the country. Fundamental Change in Economic Operational Mechanism.     The era characterized by a highly centralized economy has ended following unremitting efforts of exploration in the course of reform. Today, the enterprises in Shanghai are fully independent producers and operators on the market and the prices of 97% of the industrial products, agricultural products and means of production are set by the market. The social security system embracing old-age pension, unemployment and medical care with a coverage of 98% has been established. Housing commercialization has picked up pace, with over one fourth of the residents owning their housing now. All these testify to the fact that a new economic operational mechanism of allocating resources through the market has taken shape. Remarkable Improvement in Infrastructure.     The city put in a total investment of 240 billion yuan in urban infrastructure in the twenty years from 1979 to 1998, about 40 times that of the previous 30 years combined. Over 90% of this investment was made in the last eight years. A full-scale renovation of the old urban districts has been going on and a large number of municipal works, public facilities, transportation and communications equipment have been put up. A vertical transportation network in downtown Shanghai comprised of elevated roads and elevated, ground and underground rail lines has taken shape. A modern communications network covering the whole city and linking other parts of the country and overseas has been built, while large-scale construction of an information port is under way. The port handles 10,000 TEU a day and planning on a new deepwater port is in full swing. And the first phase of the Pudong International Airport has been completed and put into operation. Further Opening to Foreign Countries and Regions.     Businessmen from over 80 countries and regions had invested in nearly 20,000 projects in the city by the end of June this year, with total contracted capital coming to 37 billion USD. A large number of famous transnationals have chosen Shanghai to be their base for developing market in China. Of the top 100 industrial corporations in the world, 59 have invested in Shanghai. The Pudong New Area, after 10 years of development now, is home to a big number of domestic and foreign financial institutions, foreign trade companies and high-tech projects.     The decade of the 1990s has been a period witnessing most brilliant achievements in development in the history of the city. The people of Shanghai cherish full confidence in the future of their city. At present, we are drawing up a blueprint for a new round of development. We plan to use 10 years' time to lay a solid foundation for turning our city into an international economic center. To realize this goal, we will make vigorous efforts in the following five areas. Speeding up Pudong Development and Expanding Opening to the Outside World.     The State has recently introduced policies on expanding opening in the service and trade sectors, allowing the foreign banks in Pudong doing RMB business on a trial basis to extend their business to the two adjacent provinces of Jiangsu and Zhejiang. Shanghai will grasp firmly this opportunity to further improve its investment and service environment and fully bring into play the function of the Lujiazui Financial and Trade Zone in Pudong to extend service and business to more areas. It will also attract more domestic and foreign financial institutions, regional headquarters of international corporations, investment companies and high-tech enterprises to Pudong. Accelerating the Building of a Mechanism of Innovation and Improving the Ability at Technological Innovation.     Shanghai is one of the cities of China with a concentration of universities and scientific research institutions. In pursuing technological innovation, we will strive to give play to this edge. We will create a policy environment encouraging enterprises and individuals to go in for scientific and technological innovation and establish and improve a market mechanism of integrating the enterprises, universities and scientific research institutions so as to increase the city's power of technological innovation. Stimulating Consumption and Promoting Steady Economic Growth.     The Central Government has introduced a series of policies designed to stimulate consumer demand since early this year. Shanghai is earnestly implementing these policies. We believe that such measures as increasing the residents' income, improving the social security systems, speeding up the upgrading of industries and expanding consumer credit in housing, educational, and tourist consumption will surely promote consumption and ensure a virtuous circle of the economy. Intensifying the Reform of State-owned Enterprises (SOEs) and Improving the Modern Enterprise System.     The just-concluded Fourth Plenary Session of the 15th Central Committee of the Communist Party of China has pointed out the direction for the reform and development of the SOEs. Shanghai will continue to improve and standardize the reform of incorporation of the SOEs, encourage diversified investment and establish and improve the modern enterprise system in an effort to increase the competitive power of the SOEs on the market and the strategic realignment of assets through the market. It will also speed up the training of a contingent of highly qualified managers. Stepping up Environmental Treatment and Pursuing Sustainable Development.     Shanghai will firmly carry out a strategy of sustainable development and steadily improve the environment of the city. The Municipal Government has recently made a solemn commitment to all the residents that it will step up its efforts at environmental protection and construction to bring about a distinct change in the quality of the environment in three years time. We will carry out the realignment and treatment of rivers with stress laid on the comprehensive treatment of the Suzhou Creek in an effort to markedly improve the water environment. We will optimize the energy structure and control the discharge of tail gas of motor vehicles to improve the atmospheric environment. We will also build at a faster pace large green patches to increase the green coverage of the city. Although we are faced with an arduous task of improving the environment, we firmly believe that our objectives will be met.     Ladies and Gentlemen, Shanghai belongs to China and also to the world. I am pleased that many international business leaders present have already invested in Shanghai. We hope that our successful cooperation so far will lead to more cooperation between us in the future. We warmly welcome foreign businessmen with global perspectives and strategic vision to invest in Shanghai and participate in the development of Pudong. Let us work together to create a magnificent future.     In conclusion, I wish the annual meeting a complete success and all the participants a pleasant stay in Shanghai.     Thank you.