SHANGHAI LOCAL LAWS, RULES AND REGULATIONS

Industries Layout Guide for Foreign Investment in Shanghai

In order to guide the direction of foreign investment and further promote the economic development and urban construction in Shanghai and in accordance with “the city's urban center displaying its prosperity while its suburbs showing its strength”, the 10th Five Plan for Shanghai Economic and Social Development and the Overall Plan of Shanghai City, this Industry Layout Guide is put forward to guide foreign investment towards industrial parks.

I.Pudong New Area
Pudong New Area is the dragonhead in the development and opening-up of our country. Shanghai will continue to deepen the development and opening-up of Pudong New Area, speed up the construction of four key zones i.e. Lu Jiazhui Financial and Trade Zone, Jinqiao Export Processing Zone, Wai Gaoqiao Free Trade Zone and Zhangjiang Hi-tech Park with stress on the development of hi-tech industry and modern service industry and will strive to turn the Pudong New Area into one of the urban areas which are foreign-orient, multi-functional and modern in Shanghai.

Lujiazhui Financial and Trade Zone: With emphasis on the development of modern service industries such as finance, commerce and trade, it will speed up its work to attract multi-national companies to set up their regional headquarters there and actively develop element market with the plan to build the zone into a Central Business District.

Jinqiao Export Processing Zone: It has put the emphasis on the development of such industry as electronic information, automobile & spare parts, modern household electrical appliances, and bio-pharmacy.

Waigaoqiao Free Trade Zone: It will speed up its work to develop 4 major functions: export processing, modern logistics, international trade, transaction & exhibition of bonded commodities.

Zhangjiang Hi-tech Park: It will focally develop bio-pharmacy, information industry and other industries with technology research & development, innovation and manufacture as its guide.

II.State-Level Economic and Technological Development Zones
Caohejing New Technology Development Zone, Minhang Economic and Technological Development Zone, and Hongqiao Economic and Technological Development Zone are the earliest-established state-level development zones in Shanghai. We will further improve their development zone functions and give full play to their exemplary and guidance role in the aspects of development, construction, and management of development zones so as to raise the overall level for Shanghai development zones.

Caohejing New Technology Development Zone: It stresses on the development of such hi-tech industries such as microelectronics, photoelectronics, computers and software, and new materials.

Minhang Economic and Technological Development Zone: it stresses on the development of mechanical & electrical equipment, modern bioengineering, and pharmacy as well as beverage & leisure food.

Hongqiao Economic and Technological Development Zone: It stresses on the development of commerce and trade, exhibitions and shows with foreign trade as its central feature.

III.Export Processing Zones
Approved by the State Council, Shanghai has established five export-processing zones, i.e. Songjiang, Jinqiao, Qingpu, Caohejing and Minhang. Through policy focusing and standardized high efficiency service, Shanghai will speed up the concentration of the export-orientated and hard currency earning enterprises and turn the zones into the guiding zones for high & new technology industries, key export-for-hard-currency zones and zones with a large concentration of outstanding talents.

Songjiang Export Processing Zone gives the priority to the development of electronic information industry and its accessories industry focusing on lap-top computers. Jinqiao Export Processing Zone (southern zone) mainly develops such industries as electronic information, precision components and new materials industries. Qingpu Export Processing Zone puts the emphasis on the development of precision mould, LCD, TFT and communication equipment. Caohejing Export Processing zone mainly develops the manufacturing industries of electronic information products focusing on computers, new electronic components and communication and network equipment. Minhang Export Processing Zone mainly develops electronic information, optical electromechanical devices, precision machinery, high-quality clothing and metal hardware.

IV.Major Industrial Bases
In accordance with Shanghai Overall City Plan and industrial development plan, Shanghai will focus on the construction of 4 major industrial bases: suburban micro-electronics base, international automobile town, sophisticated iron & steel base and chemical industrial zone. Shanghai will also plan to build the Lingang New City Industrial Zone, marine industrial base, thus speeding up the concentrated development of industries in Shanghai.

Shanghai Microelectronics Industrial Base: It is composed of the core zone and expansion zone. The core zone is focused on Zhangjiang Hi-tech Park, extending to Jingqiao Export Processing Zone and Wai Gaoqiao Free Trade Zone that are regarded as Pudong microelectronics industrial belt. The expansion zone, including Caohejing New Technology Development Zone, Songjiang Science Park and Export Processing Zone, Qingpu Industrial Park, and Shanghai IC Design Creation Center, will be built into one of the major development and production bases in the world for microelectronics. The priority is given to the development of chip manufacturing and design, chip sealing and measuring, micro-electronics R & D system, micro-electronics equipment manufacturing, micro-electronics raw materials and other accessory industries, forming up a complete industrial chain.

Shanghai International Automobile Town: Located in Jiading District, it will be basically built into a comprehensive automobile industrial base which is the largest in scale and has the most complete range of functions in Asia. The priority is given to the development of R & D and manufacture of a whole automobile and spare parts, automobile trade, automobile logistics, automobile science and education expo, automobile culture tourism and automobile service industries.

Shanghai Sophisticated Iron & Steel Base: Located in Baoshan District, it is the largest sophisticated iron & steel production base and iron & steel technology R & D base in China. The 4 intensive sophisticated iron & steel bases will be built: common carbon steel manufacturing base of Baosteel, stainless steel manufacturing base of No.1 Steel Plant, special steel manufacturing base of No.5 Steel Plant, and deep processing base of Ruojing Steel Plant. The emphasis is on the development of automobile steel, petroleum pipe, marine plate, stainless steel, electrical steel sheet, and high efficiency steel for building industry.

Shanghai Chemical Industrial Zone: Located in northern bank of Hangzhou Bay in southern Shanghai, it will be built into a green chemical town with internationally advanced technique and technology, the largest economic scale in Asia, the world's first class management mode, and a coordinated development of production, ecology and environment protection. The emphasis is on the development of 6 series of chemical products including deep processing of petrochemical industry & natural gas chemical series, phosgene derivative series, fine chemicals series, processing of high polymer materials, comprehensive deep processing and hi-tech bio-engineering.

The modern equipment-manufacturing base in Shanghai Lingang New City Industrial Zone: Located in Nanhui District, it is planned to be built into a zone with the integration of six functions, i.e. advanced manufacturing, modern logistics, R & D service, export process, free trade, and education & training. The emphasis is on the development of 10 major industries including precision processing equipment manufacturing, digital & intelligent measuring and auto control equipment manufacturing, modern communication and transport and modern logistics equipment manufacturing, new-type environment protection devices manufacturing, medical apparatus and equipment manufacturing, electronic communications and network products manufacturing, new-type components manufacturing, new materials industries, modern logistics industry and vocational education and training research and development.

Shanghai Marine Industrial Base: Located in Changxing Island of Baoshan District, it is planned to be built into the largest shipbuilding, ship-repairing and corollary industrial base. It will become a R & D base for optimizing internationally competitive standard ships and developing ships with high & new technology, a manufacturing base for ships with hi-tech contents and high added value and a base for manufacturing marine engines and key parts and for supply of system integration and assembling. The emphasis is on the development of shipbuilding, ship repairing and their accessories industry. Meanwhile it is planned to manufacture marine mechanical & electrical equipment there with the emphasis on the development of electric appliances, auto control system, communications equipment, marine instruments and meters, deck and cabin machinery and other accessories for the shipyard.

V.City-level Industrial Parks
The city-level industrial parks are a priority in the development of manufacturing industry in Shanghai suburbs. Shanghai will speed up the construction of 9 city-level industrial parks in Jiading, Songjiang, Qingpu and other districts and county, forming the development pattern characterized by "having one very strong industry and the coexistence of multi-industries” to realize staggered competition and coordinated development so as to enhance the further development for districts and county.

The development focus of Jiading city-level industrial park is on the manufacturing industries of automobile spare parts, optoelectronic information and environment protection equipment. The development focus of Songjiang city-level industrial park is on microelectronics, non-pollution new materials, biomedicine and production of foodstuff & health tonics. The development focus of Qingpu city-level industrial park is on information communication, biomedicine, non-pollution material for modern textiles and non-pollution precision machinery processing. The development focus of Minghang city-level industrial park is on manufacturing computers and communication equipment, household electrical appliances as well as new materials. The development focus of Baoshan city-level industrial park is on extension processing for sophisticated iron & steel, modern machinery manufacturing, new materials, and transport equipment of heavy containers. The development focus of Jinshan city-level industrial park is on fine chemicals, chemical construction materials, and food processing. The development focus of Nanhui city-level industrial park is on electronic appliances, automobile spare parts and new-type construction materials. The development focus of Fengxian city-level industrial park is on manufacturing electronic communication equipment, power transmission and distribution equipment and electronic-machinery equipment. The development focus of Chongming city-level industrial park is on green industry.

VI.Modern Logistics Park
Relying on the comprehensive advantages of deep-water ports, airports, and land transport in Shanghai and giving full play to port functions, Shanghai will develop 4 major logistics parks of Waigaoqiao, Pudong Airport, Northwest and deep-water port.

Waigaoqiao Logistics Park will make use of the advantage of harbor area and free trade area and it will be built into a distribution center for multi-national corporations, becoming a logistics park featured by entrepot of bonded commodities. Using the advantages of quick and convenient aviation transport, and taking the construction of the aviation hub in Asian-Pacific region as an opportunity, Pudong Airport logistics Park will build itself into an aviation logistics hub with comprehensive service functions. Northwest Comprehensive Logistics Park will focus on its function as a distribution center for inter-provincial logistics and enhance the cargo transport & transaction function as a land transport trade center, thus building itself into a logistics hub radiating to the Yangtze River Delta and interior provinces through land highways. Deep-water Port Logistics Park will make use of the deep-water port advantages and connect the logistics network at home and abroad, matching the international shipping center in Northeast Asia and becoming the most important port logistics base. It will be the largest in terms of scale and the areas it covers.

VII.Modern Agriculture Park
The development of modern agriculture in Shanghai is mainly focused on 12 modern agriculture parks, i.e. Minghang, Jiading, Baoshan, Pudong, Nanhui, Fengxian, Songjiang, Jinshan, Qingpu and Chongming, as well as Nonggongshang and Shangshi Groups. The development focus is on crop and plant cultivation including seeds resource, green agricultural products, vegetables, flowers, high-quality commercial rice, fruit trees & horticulture, greening as well as aquaculture and animal husbandry including crab breeds, commercial crab, aquatic products, white goats, milk cow, Shanyuan intercrossed pigs and it will also develop such functions as processing of agricultural products, logistics, agricultural science & technology, and agricultural sightseeing & leisure.

VIII.The Others
The others include Sheshan National Tourism resort, Shanghai International Medical Park, Zizhu Science Park, and Xinghuo development Zone. Among them, Sheshan Tourism Resort will be built into a urban tourism and leisure resort, focusing on the ecological green protection, natural scenery and landscapes, and water scenery tourism. Shanghai International Medical Park, focusing on hospital construction and promoting the development of relevant health industries, will become the comprehensive medical park with the integration of medicine, education, research and production. The priority is given to the development of manufacturing medical apparatus and equipment, R & D, and specially required medical service. The Zizhu Science Park, featured by intelligent-type industries, has laid emphasis on the development of 3 major industries including information, new materials, biology and modern agriculture, becoming a modern science park with the integration of production, learning, and research. The development focus of the Xinghuo Development Zone is on textiles & chemical fibers, pharmacy, papermaking and construction materials.

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