Speech on the Forum of Shanghai Suburban Investment Environment of SIF

Distinguished guests, ladies & gentlemen:
On behalf of Shanghai Municipal People's Government. I would extend my welcome and deep gratitude for your participation in the forum of Shanghai Suburban Investment Environment.
Situated at the golden coast of China, Shanghai is a metropolis of world attention, Forum theme entitled today is “Shanghai Suburbs: Hot land for investment”. You might have a feeling when you step on the soil of Shanghai Suburbs, you are intoxicated by warm and vigorous atmosphere.
Peop1e who are familiar with, understand and concern about the deve1opluent of Shanghai all know the fact that in the 1ast 20 years, especially in the 90's last century, Shanghai has witnessed earth-shaking changes with two-digit increase of GDP for ten year's running. A metropolitan circle with combination of industry and resource is emerging in Shanghai and ne1ghboring area, A beautiful and attractive metropolis has been enlivened with boundless vitality. Similar to the other wor1d cities, Shanghai possesses not only its metropolis nucleus-city proper, but also boasts for promising shell-Shanghai suburbs.
The erecting of the city proper can't be separated from rural development. With globalization and world metropolis accession nowadays, Shanghai has become a hot land for investors both at home and abroad with its unique location advantage. vast development, profound culture and better investment environment.
A. Strategic Position of Shanghai Suburbs.
Lying at neighboring of city proper and frontline of reform and opening up, Shanghai suburbs enjoy its abundant resources, rich land & smart ta1ents that offer broad inland and space for city development. It is of high significant to accelerate the establishment of international economic, financial, trade and shipping center furthermore, to boost the deve1opment of Yangtze River delta and coastal area of China.
a. Shanghai suburb is the important layer for city extension
Shanghai needs to build world-level metropolis. According to the regulation. of global cities' development. city proper is sure to form a metropolitan circle. As average GDP per capita in Shanghai reached to US$4500, Shanghai is becoming a metropolitan circle with city proper as metropo1itan nucleus, Suburban area as metropolitan layer while inland of Yangtze River delta as metropolitan circle. Total area of Shanghai suburbs is 5700 sq. km, accounting 6300 sq. km of the city total and is the important channel, bridge and intersection to connect with city proper. Yangtze River delta and at home and abroad. Three main functions wil1 be fully displayed in Shanghai suburbs’ future development. First is the acceptance, namely to accept city's radiation including industry transfer, population & foreign capital inlet. Second is the service i.e. to establish public social service system in order to push forward all-round progress. Third is ecology i.e. With green agriculture & ecological environment construction and structure of wetland, green land; forest & water system framed, eco-forest environment with human and nature has been harmoniously formed. As city's metropolitan layer, Shanghai suburbs have become a pattern which can be comparable with economic scale and comprehensive strength of the city within five years' efforts, Shanghai has established metropolis town system with reasonable 1ayout and complete function. A modern traffic network with high level, comprehensive and convenient connection to outside wor1d has been completed. A new image of natural environment l., Shanghai suburban area with green land, blue sky, clean water & better residence has been set up together with the economic operative and managing system. The unique function and strategic position Shanghai suburbs possess will make it a hot 1and for capital circulation investment.
b. Shanghai suburb has been a significant increase for further development
Entering into 21 century. Shanghai faces new historical opportunity. With the acceleration of socialist modernization, Shanghai has turned into metropolis which could represent conditionally China's strength meanwhile Shanghai is the important area to release Shanghai strength and Shanghai level. In the latest 10 years' development, Shanghai has been a magnificent element. By the end of this year, GDP in Shanghai suburb will have reached to 168 billion yuan, a 9.8 times increase in 1990, Total industrial output value will have attained to 417 billion yuan, a 13.8 times over than 1990, accounting one third and one half respectively of the city tota1. Great changes have been made in opening up and reform policy performed. 12500 foreign-funded enterprises have been approved in Shanghai suburbs. accounting 40% of the city total with contractual investment of US$28 billion, accounting 27% of the city total. Historical development in Shanghai fully shows. suburbs have relied on the city proper to attain the goal of GDP per capita of US$ 1000—5000 and now the right moment to depend on metropolis 1ayer—Suburban area, Therefore future development in Shanghai suburb will play an essential role for 1nternational economic, financial, trade and shipping center with the priority of city construction and structure arrangement to be transferred to the Suburban area, especially the shap1ng of 4 state-level industrial bases of international aviation port, deep water harbor, steel in Baoshan, automobile in Jiading, ZhangJiang high-tech in Pudong New Area and petro-chemical in Jinshan, The rapid development of 9 municipal -level of industrial zones and 100 economic zones will become the battlefield and engine for the economic development in Shanghai. By the end of last year, 50 enterprises of the Fortune 500 have settled in Shanghai, suburbs, NMB of Japan in Qingpu with recent 10 years has manufactured and sold 70% of the world miniature bearing, Preliminary project of deep water harbor in Yangshan and new harbor city have beet settled down in Nanhui. As the airplane carrier of Shanghai economic development within the next 5-10 years, suburban area in Shanghai will maintain its high speed operation and by the year 2007,main economic index will have been doubled based on this year. Therefore investment in Shanghai is a wise choice.
c. Shanghai suburb is the promising area for investment
With the boundless vitality and developing space, Shanghai suburb is the hot land full of hope for investment. As the industrial structure adjusted in Shanghai Suburb, we are anxious to upgrade our industry and have enterprises and various R&D centers of high-tech and famous HQ of multinational companies & large groups settled down there which provide brand new objective to push forward the procession and golden opportunity to town construction, real estate exploration, education, science, culture, public health and physical training. Fully utilize natural resources in Sheshan Dianshan Lake, island and Huangpu river of Shanghai, Suburbs in order to develop tourism which set to be the new choice in investment development. To quicken the pace of agro-modernization, breed and seed agriculture, facility agriculture, export- oriented agriculture and eco-agricu1ture Will be encouraged which is the new opportunity in rural area's development. Shanghai will display its strong influence and its unique 1ocation advantage and potential development to attract overseas with better system and cultural environment Rich imagination of tremendous prospective will be offered to the pioneers. Significant strategic position decides the importance of Shanghai Suburbs.
B. Beautiful Prospective in Shanghai Suburbs
Development in Shanghai will enter a crucial stage In the next 5 to 10 years. Up-holding the theme of increasing city's competitiveness. build metropo1is in accordance to the international standard, Shanghai suburbs as the important component of metropolis will offer the investors the following:
a. first-rate residential environment
Live and work in peace and contentment is the premise for investors' pioneer. With the procession quickened for unifying urban and suburban area, accelerating urbanization of rural area, new change for residential environment in Shanghai will be realized. First is the formation system of city and town. 200 towns in Shanghai Suburban area have been reduced to 131 through regional adjustment. Pilot for one city nine towns has been all-round started with namely new city has shown its image of industrial zone, university and Sheshan scenic spot in SongJiang, eco-town of PuJiang in Minghang, automobile of Anting town in Jiading. With the merging and exchange of the natural villages, farmer's residential area has been concentrated in the town. By the year 2010, suburban area in Shanghai will establish model as city proper-new city-center town-town. Second is the real estate with over 700 sq. km were constructed last year. In recent years, high level villas in Songjiang and Kangqiao have been made. In the next 5 to 10 years. with the urbanization of the suburbs and inlet city population, rea1 estate in Shanghai suburbs might have 4 major characteristics: urbanization will lead high level buildings, small town construction will boost real estate ,eco-environment will have more de1uxe suites and major construction project will form residential areas. Tourism in suburbs will have a breakthrough with eco-island, Dianshan lake, Dianpu river. upper reaches of Huangpu river esp. seaside touring in Fenxin which serve the purpose of tourism, leisure and vocation resort. Third is the completion of express and rail traffic network help to ease the inlet city population. By the year 2020, millions of city dwellers will be settled down in rural area to enjoy new modern life in pleasant environment.
b. first-rate eco-environment
Stepped into the new century, Shanghai is strive to build first- rate internationa1 eco-city while suburbs will shoulder historical mission. According to the requirement given to metropolis by the UN, Shanghai will resolutely follow the pattern of ECO-Shanghai i.e. economic ecology, As compound natural system for Shanghai economy-society, Shanghai needs to establish healthy, safe, harmonious and sustainable environment. This year Shanghai municipal government has formulated 3 year action plan (2003-2005 ) for rural environment protection which direct clearly for eco-construction in suburbs, simultaneously through agro-structure adjustment, 3 one thirds will be made. I.e. 3 million rice plots and one third of man-made forest, one third change into cash crops and other one third qualified paddy rice fields to further consolidate environmental protection strength. Since this year, project for rice to replace forest in rural. area has been operated accompanied with corridor, forest and pavilion which to be embraced by green land, blue sky, clear water and better residence with houses in the forest & forest in the city and man in the green. By the year 2005, suburban forest will have exceeded to 100 MU with forest coverage reach to 20%, at the same time agriculture pollution will be treated effectively. Shanghai is strive to build state-level garden city and world-level eco-city, create better environmental economy. society and ecology.
c. first-rate investment environment
Perfect investment environment is the solid foundation for pioneering. In recent years, Shanghai suburbs pay special attention towards investment environment so as to secure investment introduced. Insist on diversified development that offer pioneer base for investors both nationally and internationally. 90 sq. km of nine municipal-1evel industrial zones in Shanghai suburbs have been operated with 50 sq. km being built. Through regional adjustment, each district and county has formed its new investment zone. meanwhile utilize 100 over economic zones, encourage not-public sectors of economy such as private and individual enterprises from Guangdong and Wenzhou have settled down in the rural area with certain scale. The new round infrastructure construction of three ports and two roads (deep water port, aviation port, information port, express network and rail traffic network) will make Shanghai suburbs an important traffic network to Yangtze river delta and outside world. In the year 2005, Shanghai will basically secure its position as international shipping center, aviation intersection in Asia & Pacific and important information center and express and rail traffic network. With the completion of the infrastructure, easy traffic will be provided to the investors to speed up manufacture, logistics and information sector in Shanghai rural area.
C. Best Service provided in Shanghai Suburbs
Managing system for market social and legislative is a condition essential yearn for the investors. Shanghai suburbs will stick to the principle of sincerity effectiveness and best service to the investors.
a. establish responsible government, strengthen public service
With socialist market economy, especially China's entry to WTO, Shanghai has strengthened the reform in government structure. According to the requirement, weakening direct participation of economic management, separate government and enterprises, government and public agency are highly necessary. Responsible government establishment will represent the majority people's fundamental interests and maintain lawful right for Investors at home and abroad. Foreign investment service centers have been set up in various districts and counties to provide with one stop service ranging from proposal, land take over to register in the industrial and commercial bureau which simplify the procedure for foreign investment. At present, there are 57 foreign-funded banks and 80 foreign-funded branches can Support fund & service possible to the enterprises.
b. implement preferential policy, enjoy national Package
During these years, Shanghai municipal government and district and county level administrations take considerably about the investors' interests. try every means possible to reduce commercial cost, adopt a series policies Supportive to investors who might share the national package. First is to encourage industry concentrate in the industrial zones. Local government at various level inspire investors to run enterprises in nine rnunicipa1 level industrial zones and other relative key developing zones approved by the government. Not only projects and land lease approval procedure will be smooth and fast, but a1so wi1l reduce the Investors' cost. Second is to encourage special sector policy. Sectors that have been encouraged by municipal government will all be provided by certain supportive policy. Third is to reduce commercial cost. In order to make suburbs more attractive, local government has put forward 16 measures to cut down commercial cost.
c. explore human resources, support pioneer development
Shanghai is an international metropolis with talents, science & technology which can boast of 30 over universities & colleges and 100 more research institutes. Investment undertaken in Shanghai suburbs may appreciate the rich human resources. In recent years, education science and technology in the city proper has been extended in rural areas which will form new educational base in east, west, north and south. Comprehensive universities of letters and science based on Shanghai University have already been established in Baoshan. 2 sq. km garden university city have been set up in SongJiang. New campus of Jiaotong University based on Zhizu high-tech zone has been erected by the Huangpu River in Minghang. Private-run universities represented by jianqiao College combined with teaching, science and research and production near deep water harbor have been built in Nanhui. Surrounded by the social development, reform current educational system, create more intermediate and high level technicians, further improve labor initiatives so as to meet opening up and reform development in Shanghai suburbs.
Ladies and gentlemen, Shanghai suburb is a hot land for cooperative vitality. Inspired by the spirit of the closing 16th CPC National Congress, people in Shanghai will do a better job to meet the climax of new-round exploration and construction. We welcome your precious proposal and suggestion. Let's join hand in hand for an even more brilliant future!
Thank you!