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In terms of population, Shanghai is not only the largest Chinese city but also the largest city in the world. Controlled by the People’s Republic of China, the city boasts of more than 24 million inhabitants and is a global financial centre. Shanghai is home to the world’s busiest container port and is considered one of the most important transport hubs of the world. Located in East China in the Yangtze River Delta, Shanghai sits in the middle portion of the Chinese coast right at the mouth of the Yangtze river.
Bordering the provinces of Jiangsu and Zhejiang, Shanghai is also near the East China Sea. For many centuries the city has been an immense shipping, administrative, and trading town. In the 19th century Europe began to recognize the economic potential of Shanghai due to its favourable port location. Following the victory of Britain over China in the First Opium War the city was opened for foreign trade. After this, Shanghai was very successful as a centre of commerce between the east and the west and became the financial hub of the Asian Pacific. This economic prominence changed considerably after the Communist Party took over the nation.
That being said, Shanghai today is a very popular tourist destination due to its numerous historical landmarks like the City God Temple, Yu Garden, The Bund, and major museums including the China Art Museum and Shanghai Museum. The city is considered to be the epicenter of the booming economy in China.
Shanghai Economy
Not only is Shanghai the commercial and financial centre of China, it also ranks very high in the Global Financial Centres Index published in the UK. It is considered to be one of the largest and most prosperous cities in the Far East, as exemplified by the reclamation of the Pudong district into a pilot area for economic reforms. There are hundreds of financial institutions Shanghai, of which a great percentage receive foreign investments.
The Shanghai Stock Exchange ranks very high among all worldwide stock exchanges in terms of trading volume as well as total capitalization of listed companies. There are six key trading commodities on the Shanghai Futures Exchange, including rubber, copper and zinc. The very first free-trade zone in Mainland China was launched in Shanghai under Chinese Premier Li Keqiang. The Zone is famous for introducing many pilot reforms that are designed to foster an environment conducive to foreign investment. This has helped to attract the highest volumes of financial sector foreign direct investment found in any Asian-Pacific region.
Considered to be one of the fastest developing cities in the world, Shanghai has reported double-digit growth almost every year in the past 2 decades. The largest service industries in the city are financial services, retail, and real estate, while manufacturing and agriculture account for a great deal of the city’s output. Shanghai is the world’s busiest container port and therefore aims to be an international shipping centre in upcoming years.
Shanghai Infrastucture
Recently the Chinese central government has formally approved Shanghai’s plan to become an International Financial Centre, making the city a global economic, trading and shipping, and financial hub. The infrastructure of Shanghai is therefore being improved to meet these goals. Immense new developments were undertaken for the Shanghai Expo, seeking to reclaim the city’s former status as China’s most cosmopolitan city.
It is reported that China spent $95 billion in infrastructure improvements prior to the Expo, and the development surpassed anything the world had ever seen on such a scale. Today, this city is home to some of the world’s tallest skyscrapers and the world’s first super-high-speed magnetic-levitation train. During this construction there was much improvement to Pudong and Hongqiao airports, as well as expanded metro and high-speed railroad service. The subway was also expanded from 3 lines to 12, greatly improving transportation in the city.
This expanded transportation network has also improved the area’s shopping market, and many buildings from the Expo have been converted into eco-friendly offices, residential areas, and retail spaces. Thanks to all these improvements, Shanghai is more integrated and accessible than ever, and now boasts of one of the longest underground railway networks in the world. Transportation improvement have also made it possible for workers in the city to easily commute to affordable homes in the suburbs.
Shanghai Population
Shanghai is the most populous city in the world, and is home to a great deal of young, educated, and work-oriented people. That being said, there are countless migrant workers in China, perhaps filling deficits that are created by China’s policy on limited family size. These migrant workers are proficient at basic labour, but are not as adept at the more skilled trades. One explanation for the gap in talented workers is that the industries in China are developing at an incredibly rapid pace, and the country is definitely taking steps to fill the gap.
There are numerous training programs in Shanghai that aim to increase the numbers of skilled workers, and high wages are a means of attracting these workers. There’s a great effort to increase the talent in mechanical engineering and auto mechanics, sales, and software. Enterprises are developing quickly in Shanghai, and all of these require higher and higher skill requirements that the city is actively seeking to meet.
There is an increase in the number of workers who can speak English in Shanghai, and there’s a high value placed upon the members of the workforce who are proficient in the language. The Shanghai Employment Service Centre is a tremendous resource for not only helping workers to find jobs, but also for helping employers to find suitable employees.
Recent studies have shown that more and more Shanghai citizens are going to college, with a quarter of the university-aged population attending university. This bodes very well for the future talent of Shanghai, as well as the country as a whole. As more migrant workers receive the same level of education and training, the workforce in Shanghai will continue to improve.
Shanghai Business Cost
Based upon the five indicators of the cost for doing business; labour cost, office rent, energy prices, taxes, and employee insurance, Shanghai did not rank as the most affordable city in China to do business. In fact, it could even be considered one of the most expensive. That being said, this should not deter investors or foreign businessmen from setting their sights on the city. Shanghai is currently boasting of one of the most impressive infrastructures in the country, and the growing workforce is seeing improvements in education and training. Rental costs can be quite high in Shanghai, and there are also high expanses in terms of employee insurance coverage, such as pension, medical insurance, unemployment, and injury insurance.
Taking all of this into account, it’s still hard to deny that this is one of the fastest growing cities in China, and with the rapidly expanding transportation system and suburb development, Shanghai will only increase in size due to the favourable living conditions. In spite of the high costs, Shanghai is one of the most popular cities in Asia for foreign investment, and there are clear indicators pointing towards increased potential and economic growth.
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