Shanghai: The "Dragon Head" of China`s Economy

Abstract

With a strong economic performance over recent years, Shanghai has risen to prominence again in the Chinese economic scene. However, its development has been marred by some major problems, including continued reliance on extensive rather than intensive growth; the poor performance of the state-owned enterprise sector; weak international competitiveness in the six ”pillar industries”; a high level of unemployment; and overinvestment in Pudong`s real estate sector, leading to considerable under-occupancy of buildings. In addition, many of the accomplishments achieved by Pudong and Shanghai as a whole over the years have been due largely to the central government`s preferential policies. To become an international economic, trade, and financial center, it will not be sufficient for Shanghai to focus on the development of Pudong. More efforts should be made to achieve the globalization of production, distribution, and services throughout the city.