Xuhui, a central urban district of Shanghai, is setting a new benchmark for economic and technological advancement during the 14th Five-Year Plan period (2021-25). Its GDP is projected to exceed 400 billion yuan ($56.1 billion) this year, placing it among the city's leaders. The district general public budget revenue is anticipated to surpass 30 billion yuan, according to a municipal press conference on Oct 16.

AI innovation

Over the past five years, Xuhui has strategically built innovation and industrial chains around artificial intelligence. In 2023, it launched the Shanghai Foundation Model Innovation Center (SMC), the nation's first large language model (LLM) innovation ecosystem community, sparking an AI innovation boom.

The district is now home to over 1,500 AI companies, 755 LLM enterprises, and 62 registered LLMs, accounting for 61 percent of the city's total, with a total output reaching the 100-billion-yuan level.

Economic development

Economic transformation is rapidly advancing across the district. Major industrial clusters in the digital economy, life and health, culture and creativity, and finance for science and technology innovation are thriving, each reaching a scale of 100 billion yuan. Emerging sectors such as smart terminals and green, low-carbon technologies are rapidly expanding.

Xuhui's R&D investment ratio stands at 6.46 percent, with enterprises contributing half of the total. The district has established 20 high-quality incubators, three of which are recognized at the municipal level, representing one quarter of the city's total. The integration of technological and industrial innovation is accelerating, providing strong momentum for Shanghai's economic growth.

Over the past five years, Xuhui has advanced 242 key reform tasks, pioneering innovations in more than 40 fields at the national and municipal levels. The UNESCO International Institute for STEM Education has established its base in the district. Xuhui has also launched the city's first intellectual property securitization project.

The district now hosts 174 regional headquarters of multinational companies and foreign-invested R&D centers, maintaining its leading position among the city's central urban districts. Actual utilized foreign capital is expected to grow by 79.2 percent compared to the 13th Five-Year Plan period (2016-20).

Consumption strength

To stimulate consumption, Xuhui has deepened the integrated development of commerce, tourism, culture, and sports. New business models such as the debut economy, night economy, and sports-entertainment economy are flourishing.

During the 14th Five-Year Plan period, the district's total commercial sales are expected to exceed 800 billion yuan, with retail sales surpassing 130 billion yuan.

Among the highlights, Xuhui has hosted the FISE World Series Shanghai, Shanghai International Light Festival, and various brand debut activities. It has also created new cultural and tourism experiences such as Huangpu River cruises, low-altitude sightseeing, and drone shows.

Leveraging the unique advantages of the Hengshan Road-Fuxing Road Historical and Cultural Block and the Caohejing Development Zone, Xuhui is developing distinctive tourism destinations, including new retail commercial streets and metaverse blocks, further boosting consumption and driving economic growth.

Source: Official WeChat account of the General Office of the Shanghai Municipal People's Government at "shanghaifabu"