Economy > Shanghai > General

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Introduction

Shanghai is one of the largest cities in China. It is situated at 31°14' N, 121°09' E and covers an area of 6218 km2, about the size of the Dutch province of Utrecht. The 113 km-long Huangpu River is the main waterway as it winds its way through the downtown area. North of the city the Yangtze River flows into the East China Sea near the centre of China's coast, making Shanghai an excellent sea and river port with easy access to the vast interior of the country.

Shanghai's population is estimated at more than 20 million in 2005 (including the so-called flowing population of around 3 million). With a pleasant northern subtropical maritime monsoon climate, Shanghai enjoys four distinct seasons, generous sunshine and abundant rainfall every year. The average annual temperature is around 16 degrees Celsius. The city receives an average annual rainfall of circa 1200 millimetres.

The Shanghai economy is a mixed market economy in which state-owned-enterprises (SOE), private enterprises and Foreign Direct Investments play a major part. The Yangtze river delta with Shanghai as its main city is -together with Guangzhou at the Pearl river delta- the most important economic centre of China. The city has achieved sustained, fast and sound economic advancement. From 1992 to 2004, Shanghai had registered a double-digit annual GDP growth rate for over ten consecutive years. GDP per capita has reached around USD 6500 in 2004. See Statistics for further figures.

Shanghai is often called the economic engine of China because of the size of its economic activities, the relatively high growth rate and innovative character. Business is booming since the introduction of the Open door politics in the early 1980's. It is developing at incredible speed. A good example of this is Pudong, a new district on the east side of the Huangpu river where a New York like skyline has evolved in the last 12 years. The city has two airports, two metrolines, a lightrail train and a high speed magneticly elevated train.

35 km Southeast from the coast of Shanghai, a new deep sea port is being built. This port will be one of the biggest in the world. See also Infrastructure.

• The relatively high degree of education in combination with relatively low wages compared to the western world.

The huge number of foreign companies and HQ in Shanghai gives testimony to the important role that Shanghai is playing in the development of China as a whole. Around one third of all trade to and from China goes through the Shanghai Port. Large sums of FDI pour into the city annually, facilitated by the government and the entrepreneural spirit of the Shanghai people.

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