SASS report: Shanghai's industries become more competitive

International competitiveness of Shanghai industries improved in the past two years led by stronger services sector, Shanghai Academy of Social Sciences said today.

The International Competitiveness Index of Shanghai Industries, released for the first time, rose to 118.91 by the end of last year, 4.1 percent higher than 2014, the academy said in the study commissioned by Shanghai Municipal Commission of Commerce.

The index covers three services and nine manufacturing industries assessing their competitiveness in foreign trade, market performance, technology, and core products.

Services industries including ship manufacturing, information technology, and exhibition services were the top three industries, followed by bio-pharmaceutical and auto industries.

Meanwhile, fine chemicals and ship manufacturing industries were the weakest with readings below 100, the academy said.

International competitiveness in Shanghai's ship, exhibition, bio-pharmaceutical, electronics information manufacturing, auto, and advanced shipping and maritime project industries were among top three in China.

Based on the index, the academy launched an industry safety alarming platform to alert risks in trade and industrial growth.

Ship and fine chemical industries were placed under alarm last year.

Output and market size of ship manufacturing industry have declined for five consecutive years.

The academy attributed weak performance in shipping industry to cancel of orders and high inventory.

Concerning fine chemicals industry, the academy said it suffered from price volatility of international petrochemical products and trade protectionism.

Shanghai commerce commission said the government has communicated with industry associations to act against trade friction.

The alarming signal will be used as importance reference to a trial of trade adjustment assistance program in Shanghai's free trade zone, the commission said.

Trade adjustment assistance

The trial program will start July 15 to reduce the damaging impact of a surge of import and trade protectionism to the economy.

Management committee of the Shanghai free trade zone will offer technical support for companies suffering from trade frictions.

Services will be offered to help companies improve market promotion, testing and certification, international marketing, product research and development, informatization level, risk management, export credit insurance, supply-chain management and financing, and employee training.

The assistance will be extended for two years.

Shanghai companies were affected by 740 cases of trade friction by the end of 2016, of which 445 protectionist measures are still in effect.

Free trade zone management committee said detailed operation rules will soon be announced to decide companies qualified for the assistance program.