Shanghai is accelerating its efforts to build an international trade center. [Photo/CFP]

In a robust push to establish itself as a preeminent international trade center, Shanghai implemented a national strategy in 1992, which was further defined by the State Council in 2001. The city's strategic upgrades during the 13th Five-Year Plan period (2016-20) have solidified its status as a key global trade hub, expanded its influence, diversified its trade functions, and moved up the value chain – significantly strengthening the trade center's capabilities.

In 2023, Shanghai's ports accounted for 3.6 percent of the world's total trade volume, placing the city at the top of global trade for the second consecutive year. At the same time, Shanghai's retail sales of consumer goods soared to an impressive 1.85 trillion yuan.

In recent years, Shanghai has made concerted efforts to promote the high-quality development of the Belt and Road Initiative. As of October 2023, the city has cultivated friendly relations with 94 provinces, states, and municipalities in 59 countries. The service center of the Belt and Road Initiative is functioning effectively, complemented by the increased frequency of the China-Europe freight train service. Leveraging its strategic position as a nexus of sea, air, and digital infrastructure, Shanghai has been instrumental in promoting the maritime, air, and digital Silk Road.

The city has also seen a significant expansion of two-way investment and trade. Shanghai-based companies have been at the forefront, with their overseas investment projects ranking among the highest in the country in both number and volume. Capitalizing on its reputation as an international financial center, Shanghai has enhanced its financing and funding services, attracting many foreign-funded financial institutions to establish their presence in the city.

During the 14th Five-Year Plan period (2021-25), Shanghai is committed to improving the ease of trade and investment while enhancing its role as a trade hub. Plans are underway to build an international trade demonstration zone, promote the growth of digital and knowledge-intensive service trade, achieve breakthroughs in offshore trade, and harmonize onshore and offshore business operations. In addition, Shanghai aims to become an international consumption city and a leading global exhibition center.

Shanghai's retail and e-commerce sector thrives

As a testament to its burgeoning retail sector, Shanghai celebrated the opening of 1,215 "first stores" in 2023. The city now boasts 8,530 coffee shops, the highest number in the world. In addition, Shanghai has pioneered the establishment of the country's first pilot zone dedicated to "Silk Road e-commerce" collaboration.

China (Shanghai) Pilot Free Trade Zone embarks on comprehensive reform

Pudong New Area has embarked on a comprehensive reform with an implementation plan unveiled on Jan 22, 2024. The plan explores the creation of a secure and convenient data flow mechanism and aims to establish a global offshore innovation hub.

China International Import Expo achieves record transactions

The China International Import Expo (CIIE) has achieved a cumulative transaction volume of more than $420 billion from 2018 to 2023. The 6th CIIE held in 2023 saw the participation of 154 countries, regions, and international organizations with intended transactions totaling $78.41 billion, an increase of 6.7 percent year-on-year.

 

Updated: April 11, 2024

Sources: Shanghai Municipal Government Work Report, Shanghai Foreign Affairs Office, 2024 Shanghai Basic Facts