Baoshan, Jinshan seen as key drivers of city's growth
Shanghai, a well-established destination for investment from home and abroad, is confident to ride the waves of a rising city to attract more quality investment with better policies and services.
Shanghai officials expect the combined gross domestic product of Baoshan and Jinshan districts to reach 400 billion yuan (US$61.5 billion) by 2025.
The two districts – in the city's north and south – will contribute to over 20 percent of gross industrial output in the city, according to the latest blueprint to elevate the functions of the city.
"We should focus on the implementation of national strategic deployment in the two districts and Baoshan and Jinshan's development shall serve the overall development of the city," said vice mayor Wu Qing at a press briefing on Tuesday.
The two districts are key areas to undertake national strategies and both are hubs to link other regions in the Yangtze River Delta region.
And they will be important sources of power to promote high-quality integrated development in the region, he noted.
Director of the Shanghai Reform and Development Commission Hua Yuan said supportive measures have been drawn up to attract talent, ensure housing supply, land supply, preferential taxes and financial policies to businesses in the key industry clusters within the two districts.
Some of the measures match the preferential measures of the five "new cities" of Qingpu, Fengxian, Jiading and Songjiang districts and Nanhui in the Pudong New Area.
The new cities are a priority in Shanghai's strategic plan for its future development, to optimize its development layout and to boost economic growth over the next five years.
The latest action plans for Baoshan and Jinshan eye the opening up of urban space and promote the optimal allocation of people, land and other resources.
The two districts would also connect with other cities in the Yangtze River Delta to formulate its special function in fostering industry clusters and various kinds of industry players.
In 2021, Baoshan's GDP was 172.5 billion yuan and Jinshan's was 118.2 billion yuan.
The latest action plan by the Shanghai Development and Reform Commission eyes larger influence and stronger competitiveness in the two districts.
An integrated development blueprint has been mapped out for industry and urban development in these two regions, which will also serve as a role model for ecologically friendly and liveable areas.
The two districts will foster strategic new industry clusters for new materials, biomedicines, intelligent equipment and information technologies and a city-level special promotion fund will be allocated for these segments.
Companies already see investment opportunities in the two areas as they continue to expand product offerings and production capacity for their latest products and solutions for the local market.
At the Shanghai Chemical Industry Park, materials manufacturer Covestro last week broke ground on two new plants to meet the rising demand for polyurethane dispersions and elastomers.
"These new projects further add to the scale and strength of our Shanghai site, and will contribute to high-quality and sustainable development in China and beyond," said Holly Lei, president of Covestro China.
With investment totalling mid double-digit million euros, the two new plants will allow the company to be better positioned to address the rising demand for more environmentally compatible coatings, adhesive materials and technical solutions.
The new PUD production line will expand its supply of waterborne PUDs that are used in coatings and adhesives, which have fewer emissions than solvent-based types and higher performance and for which the company sees strong demand in the local market.
Since its first PUD plant in Shanghai opened in 2008, it's been seeking more flexible supply and continues to respond to suit local needs, explained Li Jinqi, vice president for Coatings and Adhesives at Covestro China.
The production facility for polyurethane elastomers, which are widely used in industries ranging from offshore wind farms to solar energy, is expected to become operational already in 2023, and the company said this fits with China's push for a green economy and cutting carbon emissions.
The Shanghai government is seeking to reach strategic cooperation agreements with two state-owned enterprises, China Baowu Steel Group and Sinopec, to mobilize their advantages to help promote the city's industrial transformation and green, low-carbon development.
Baoshan will build a trading platform for commodities such as steel and Jinshan will feature an industrial Internet of Things platform for the chemical industry.
Jinshan is offering more leisure activity space for residents and visitors. Construction of the Legoland Shanghai Resort is underway and it is expected to open in 2024, according to Li Zelong, director of Jinshan.