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Pudong growth to boost Shanghai

By Cao Li (China Daily)
Updated: 2009-05-07 16:07

SHANGHAI: The Pudong district of Shanghai, the country's financial and commercial hub, is about to more than double in size, allowing the city to further develop as an international financial and shipping center.

"The State Council has approved a proposal to merge Nanhui district into Pudong," said municipal spokesman Chen Qiwei yesterday.

"The work to combine district government departments and other institutions has started. And we are trying to keep the system slim."

The new Pudong, with more than 1,210 sq km, will become the second largest district in Shanghai. It will integrate most of the city's financial and shipping resources, including Lujiazui, with most foreign financial institutions, and Yangshan Deepwater Port, the world's second-largest container port.

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"It is an important step to largely boost Shanghai's development," said Zhu Lianqing, who is with Shanghai Academy of Social Sciences (SASS).

"I believe the expansion is only the first step and favorable policies to encourage wider reform and opening-up in Pudong and Shanghai will follow."

In 1990, the central government decided to set up a special economic zone in Pudong. After 19 years of development, Pudong is home to the Lujiazui Finance and Trade Zone, the Shanghai Stock Exchange, and a skyline that includes the symbolic Oriental Pearl Tower, the Jin Mao Building, and the Shanghai World Financial Center.

It has emerged as the country's financial and commercial hub.

"But with limited land resources, the district is facing a bottleneck for further development," Zhu said.

"The recent Auto show in Shanghai has shown the necessity to build a larger exhibition center."

With the addition of Nanhui's 677 sq km of land mass, the new Pudong will comprise 1,210 sq km.

"And the development of financial, trading and shipping is inseparable.

Merging most of the resources under one jurisdiction will largely improve the efficiency," he said.

But some experts wonder if the change will help Shanghai's economic development.

Zheng Li, an industry expert, said in Time Weekly the expansion is only part of the story.

"The financial sector serves other industries," he was quoted as saying.

"It is more important to develop more industries that will supply the sector businesses."