2014 Briefing on Shanghai’s Commerce and Investment Shang Yuying Chairwoman Shanghai Municipal...

2014 Briefing on Shanghai’s Commerce and Investment

Shang Yuying

ChairwomanShanghai Municipal Commission of Commerce

ⅠⅠ Shanghai's Commerce Development in 2013

ⅡⅡ Outlook on Shanghai's Commerce in 2014


1. Unveiled China (Shanghai) Pilot Free Trade Zone.

▪ A new foreign investment management model with pre-

establishment national treatment and negative list.

2. Launched China Exhibition Complex.

3. Held 1st China (Shanghai) International Technology Fair.

▪ The first professional exhibition with technological trade as theme.

Nearly 1000 enterprises from 31 countries attended the exhibition.

183 projects were either achieved or had LOI prepared.

1. Unveiled China (Shanghai) Pilot Free Trade Zone.

▪ A new foreign investment management model with pre-

establishment national treatment and negative list.

2. Launched China Exhibition Complex.

3. Held 1st China (Shanghai) International Technology Fair.

▪ The first professional exhibition with technological trade as theme.

Nearly 1000 enterprises from 31 countries attended the exhibition.

183 projects were either achieved or had LOI prepared.

Deepened international trade center construction Deepened international trade center construction11


4. Promoted national modern service industry development.

▪ 105 pilot projects with government fund of RMB 500 mn , drew

RMB 12.5 bn social capital.

5. Accelerated government function transformation and

administrative approval reform.

▪Streamlined administration approval. Reduced approval items

from 56 to 35, a streamlined rate of 37.5%.

4. Promoted national modern service industry development.

▪ 105 pilot projects with government fund of RMB 500 mn , drew

RMB 12.5 bn social capital.

5. Accelerated government function transformation and

administrative approval reform.

▪Streamlined administration approval. Reduced approval items

from 56 to 35, a streamlined rate of 37.5%.

Deepened international trade center construction Deepened international trade center construction11


• <Shanghai Municipal Government's Opinion on Deepening Reforms of the

Circulation System to Expedite the Development of Circulation Industry>

• <Implementation on Accelerating Circulation Industry Development by

Deepening Circulation Industry Reform

On Accelerating Circulation Industry in Shanghai > (2013-2015)

• <Outline on Commerce Outlets in Shanghai> (2009-2020)

• <Construction Plan on Wholesale and Retail Markets of Edible

Agricultural Products>

• <Shanghai Municipal Government's Opinion on Deepening Reforms of the

Circulation System to Expedite the Development of Circulation Industry>

• <Implementation on Accelerating Circulation Industry Development by

Deepening Circulation Industry Reform

On Accelerating Circulation Industry in Shanghai > (2013-2015)

• <Outline on Commerce Outlets in Shanghai> (2009-2020)

• <Construction Plan on Wholesale and Retail Markets of Edible

Agricultural Products>

Improved market circulation systemImproved market circulation system22

Four breakthroughs in commerce

Over RMB 6000 bn up by 12.5% YoYMerchandise Sales

Over RMB 800 bn up by 8.6% YoYRetail sales of social

consumer goods

Over RMB 1000 bn up by 35% YoYE-business Transaction

Over RMB 200 bn up by 8.4% YoYTax Revenue

>Bulk commodities Over RMB 2.5 tn up by 8.1%

>Jewelery

>Household appliance

>Communication appliance

RMB 22.335 bn up by 41%

RMB 35.327 bn up by 13%

RMB 14.034 bn up by 35.2%

>online shopping Nearly RMB 200 bn


First, FDI attraction hit record high.

Contractual and paid-in foreign capital both grew by over 10% YoY.

Paid-in foreign capital was over 16.7 billion USD, occupying one-

seventh of China, increasing for 14 years consecutively.

First, FDI attraction hit record high.

Contractual and paid-in foreign capital both grew by over 10% YoY.

Paid-in foreign capital was over 16.7 billion USD, occupying one-

seventh of China, increasing for 14 years consecutively.

Optimized foreign capital utilization Optimized foreign capital utilization33


Second, optimized industrial structure.

Paid-in foreign capital of service industry was 13.567 billion USD,

accounting for 80% of the total, growth rate of commerce & trade, leasing

and logistics was 29.4%, 23.3% & and 37.6%.

Paid-in foreign capital of manufacturing was 3.184 billion USD, up by 29.8%

YoY. Growth rate of paid-in capital in civil aviation, high-end manufacturing,

electronic information, new material was higher.

Second, optimized industrial structure.

Paid-in foreign capital of service industry was 13.567 billion USD,

accounting for 80% of the total, growth rate of commerce & trade, leasing

and logistics was 29.4%, 23.3% & and 37.6%.

Paid-in foreign capital of manufacturing was 3.184 billion USD, up by 29.8%

YoY. Growth rate of paid-in capital in civil aviation, high-end manufacturing,

electronic information, new material was higher.


13.56 billion USD , 81%


Third, concentrated & upgraded headquarters economy.

Newly accredited 42 MNCs’ regional headquarters, 18 holding

companies and 15 foreign-invested R&D centers. Altogether 445

MNC’s regional headquarters, 283 holding companies and 366

foreign-invested R & D centers.

Third, concentrated & upgraded headquarters economy.

Newly accredited 42 MNCs’ regional headquarters, 18 holding

companies and 15 foreign-invested R&D centers. Altogether 445

MNC’s regional headquarters, 283 holding companies and 366

foreign-invested R & D centers.


General Mills R & D center

Shells R & D center

Evonik R & D center

Corning R & D center

……

http://baike.baidu.com/view/606007.htm?fromId=75191

http://corporate.evonik.cn/region/greater_china/han-s

http://www.corning.com/index.aspx


Fourth, areas that can utilize foreign capital will be expanded.

By 2013, Shanghai has played host to 17 foreign commercial factoring

enterprises and 219 foreign financing and leasing enterprises. New fin

ancial service sectors are flourishing, such as equity investment, ventu

re capital investment, insurance brokerage, currency exchange and thi

rd party payment.

Fourth, areas that can utilize foreign capital will be expanded.

By 2013, Shanghai has played host to 17 foreign commercial factoring

enterprises and 219 foreign financing and leasing enterprises. New fin

ancial service sectors are flourishing, such as equity investment, ventu

re capital investment, insurance brokerage, currency exchange and thi

rd party payment.

Improved Efficiency in Utilizing Foreign Capital Improved Efficiency in Utilizing Foreign Capital33

US "DreamWorks"

Shanghai Oriental DreamWorks Culture Communication CO ， LTD

Shanghai Oriental DreamWorks Technology Company

HCA (Hospital Corporation of

America)Shanghai Weizhan Hospital Management


First, annual trade in goods witnessed slight increase.

Total import and export volume reached $441.398 billion, up by 1.1% year on ye

ar, accounting for 1/10 of China's total; among which, export volume was $204.2

44 billion, down by 1.2% year on year, while import was $237.155 billion, up by

3.1% year on year; export of mechanical and electrical products and labor-inten

sive products remained steady, while import of consumer goods grew fast.

First, annual trade in goods witnessed slight increase.

Total import and export volume reached $441.398 billion, up by 1.1% year on ye

ar, accounting for 1/10 of China's total; among which, export volume was $204.2

44 billion, down by 1.2% year on year, while import was $237.155 billion, up by

3.1% year on year; export of mechanical and electrical products and labor-inten

sive products remained steady, while import of consumer goods grew fast.

Optimized Structure for Foreign Trade Optimized Structure for Foreign Trade44

进口总额出口总额

2371.55

2042. 44

2012年 2013年

Total import and export (billion)

3.1%

1.2%

Shanghaiother provinces and municipalities

Proportion of Import and Export

import export


Second, proportion of general trade grew steadily

Last year, the import and export of general trade amounted to $201.655

billion, up by 9.5% year on year, faster than processing trade by 16.4

percentage point, accounting for 45.7% of Shanghai's trade in goods, a 3.3

percentage point increase compared with last year. The import and export

of processing trade was $129.21 billion, a 6.9% drop on year-on-year

basis, accounting for 29.3% of Shanghai's total trade in goods.

Second, proportion of general trade grew steadily

Last year, the import and export of general trade amounted to $201.655

billion, up by 9.5% year on year, faster than processing trade by 16.4

percentage point, accounting for 45.7% of Shanghai's trade in goods, a 3.3

percentage point increase compared with last year. The import and export

of processing trade was $129.21 billion, a 6.9% drop on year-on-year

basis, accounting for 29.3% of Shanghai's total trade in goods.


export of general tradeexport of processing trade


Third, the trade market was more diversified.

The EU remains Shanghai's largest trading partner, with bilateral trade

exceeding $91.5 billion, accounting for 20.7% of Shanghai's total; the

bilateral trade volume with the US surpassed $73.3 billion, accounting

for 16.6%; the bilateral trade volume with Japan was more than $55

billion, down by 3.9%, accounting for 12.5%; the bilateral trade volume

with ASEAN nations, HK, Australia and Russia exceeded $ 53.9

billion, $17.4 billion, $14.2 billion and $4.5 billion respectively.

Third, the trade market was more diversified.

The EU remains Shanghai's largest trading partner, with bilateral trade

exceeding $91.5 billion, accounting for 20.7% of Shanghai's total; the

bilateral trade volume with the US surpassed $73.3 billion, accounting

for 16.6%; the bilateral trade volume with Japan was more than $55

billion, down by 3.9%, accounting for 12.5%; the bilateral trade volume

with ASEAN nations, HK, Australia and Russia exceeded $ 53.9

billion, $17.4 billion, $14.2 billion and $4.5 billion respectively.


1.5%4.6%

3.9%

EUUS Japan


Fourth, trade in service kept fast growth.

It is estimated that total import and export of trade in services last year

surpassed $165 billion, up by about 18%, accounting for 1/3 of nation‘s

total and 27% of Shanghai’s total international trade. The contracted v

alue of service outsourcing reached $6.618 billion, up by 27.32% year

on year ， of which the executed value was $4.379 billion, a 20.73% y

ear-on-year increase.

Fourth, trade in service kept fast growth.

It is estimated that total import and export of trade in services last year

surpassed $165 billion, up by about 18%, accounting for 1/3 of nation‘s

total and 27% of Shanghai’s total international trade. The contracted v

alue of service outsourcing reached $6.618 billion, up by 27.32% year

on year ， of which the executed value was $4.379 billion, a 20.73% y

ear-on-year increase.


Import and Export of Trade in Service

Ⅰ Shanghai's Commerce Development in 2013

　 Shanghai's ODI last year was $4.3 billion, up by 32.8% year on year,

accounting for 4.8% of the nation's total

　 According to the data of <2013 Annual Report of Shanghai Enterpris

es Overseas>, by the end of 2012, Shanghai enterprises accumulativel

y had ￥ 448.6 billion overseas assets under management, generating

￥ 396.8 billion in revenue.

Improved Quality and Level of "Go Global" Improved Quality and Level of "Go Global"5


4 features of Shanghai's overseas investment ：

1. In terms of investment destination

　　 8 advanced economies including USA, Australia, Germany, Japan,

UK, France, Canada and Hong Kong, attracted 82.8% of Shanghai's

overseas investment, up by 6.5% year on year

2. In terms of the nature of investment

In the form of M&A and increased investment accounted for 71.1%

of the total, up by 30.7% year on year

Improved Quality and Level of "Go Global"5


3. In terms of investors　　 Private companies accounted for 48.6% of the investment, a 9.1% increase year on year4. In terms of the fields being invested　　 Service industries like Real estate, commercial services, wholesaling and retailing, information service took up 80.5% of the investment, a 1% increase year on year

Improved Quality and Level of "Go Global"5

ⅡⅡ


Outlook on Shanghai's Commerce in 2014

Ⅱ Outlook on Shanghai’s Commerce in 2014

We will continue to seek progress while maintaining stability, carry out r

eforms and innovation, pursue innovation-driven development and econom

ic transformation, as well as gear towards a case-and-demand oriented mo

del. we will take the historic opportunity of China (Shanghai) Pilot Free Tra

de Zone to create a openness oriented new economic system and a moder

nized market system, with a greater focus on improving quality and efficien

cy, having long-term vision, and insuring stability. we will put more emphas

is on key issues and spare no effort to realize speed acceleration on 6 fron

ts and quality improvement on 6 fronts, aiming to build an "upgraded" Inter

national Trade Center.


Retail sales will be up by around 10%, Social

Consumer Goods sales up by around 8%

E-commerce Transaction Volume will be up by around 25% ；The structure of Trade in Goods will be further optimized on

the basis of positive growth; Trade in Services will be up

by around 15%;

Foreign Capital Utilization will increase by around 10%,

with 45 newly established MNCs' regional headquarters;

ODI will increase by around 20%, Contractual value of newly

undertaken overseas projects will amount to around

$10 billion

Expectation for major commercial development indicators in 2014


1. steady implementation of international trade center initiative

▪ Enrich the Ministry-Municipality Cooperation Framework and set new targets fo

r International Trade Center Initiative

2. Push forward the reforms and innovations in the Free Trade Zone

▪Formulate 2014's version of negative list; deepen the reform of Foreign Investme

nt Administration System; expand the functions of trade; develop new kinds of trade

3. attract more trade companies' headquarters

▪Formulate and release <Several Regulations on Shanghai Pulling Trade Compan

ies' Headquarters to Promote Trade Development>

Accelerated implementation of the international trade center initiative

1

ⅡⅡ Outlook on Shanghai’s Commerce in 2014

Accelerate the transformation of commerce

Accelerate the transformation of commerce

22

Accelerate the transformation of traditional business district

Accelerate the transformation of traditional commercial enterprises

Accelerate the transformation of business models

a well-connected circulation center

a cluster of all kinds of trade activities

a prosperous consumption destination

a Eco-friendly place to live and work

tocreate


Accelerate the cultivation of new business models

3

1. Comprehensively develop platform economy

▪Establish a group of commodity trade and resource allocation platforms in area

s like steel, non-ferrous metal, chemicals, oil and gas to double the trade volum

e

2. Speed up the development of e-commerce

▪Focus on areas like big data application, mobile internet and internet finance to

attract as well as cultivate industry leaders.

3. Accelerate the implementation of cross-border e-commerce

▪optimize supervision and service provision to expand import and export volumn


Accelerate the pace of local companies "Go global"

4

1. Proactively build a policy framework that cultivate local

multinational companies

▪Continue to implement the <Implementation Recommendations on Further

Accelerate the Cultivation of Local MNCs>, set force Shanghai version's "code of

conduct for cross-border operation of companies"

2. Focus on expanding outbound investment

▪Streamline application procedures, adopt filing system, guide and encourage

international M&A and equity investment

3. Further optimize the service system for companies going global


Accelerate the optimization of foreign trade structure

5

1. Optimize the structure of traditional foreign trade with a focus on enhan

cing core competitiveness

▪combining trade with industries: key areas include strategic emerging industries and adva

nced manufacturing industries like civil aviation, maritime engineering equipment, alternativ

e energy, high-end equipment, etc. The aim is to enhance export capacity

▪coordinate development between import and export: well utilize professional trade platfor

ms, strengthen Shanghai ports' distribution function and expand import and export

2. Optimize the structure of trade in services with a focus on service expor

t capacity

▪<Shanghai Trade in Service Promotion Catalog>: transportation, tourism, professional ser

vices, culture, Chinese medicine, education, high-tech, etc.

3. optimize the development environment for trade

▪Implement all the reform measures and innovative policies to facilitate trade


Accelerate interactive development of MICE, Commerce, Tourism and Culture industries

6

1. Elevate the overall competitiveness of MICE industry

▪Revision of <Measures on Supervising Shanghai's MICE Industry>

2. Formulate the "Plan of Interactive Development of MICE, Comm

erce, Tourism and Culture industries"

▪Comprehensively collect information about recent shows, sales promotions,

cultural activities, sport events, travel routes, scenic spots, etc.


Improve the quality of market system

7

1. Complete the mercandise market system

▪ Improve the layout of markets' space and improve services in finance, log

istics, information, etc.

2. Comprehensively develop modern logistic industry

▪ Develop a multi-layered logistic service system with standardized, informat

ized and organized industry operation

3. Establish order in the market

▪ Protect IPR and crack down on IPR infringement

28


Improve the development quality of livelihood related service industry

8

1. Continue to promote industrialization

▪ <Opinion on the Development of Shanghai's Livelihood Related Service

Industry>: industrialization, commercialization, informatization and branding

2. Deep implementation of key projects

▪ Encourage the development of commercial services, health services,

senior care services, domestic services, cultural services, tourism services,

sports services, etc. Promote People's Wellbeing Projects like "Breakfast

Project", "Household Management Project" and "House Appliances Repairing

Project"


Improve the quality of utilizing foreign capital

9

1. Optimize the investment environment for foreign investors

▪ introduce the administrative model of "letter of commitment plus standardi

zed approval procedures"

2. Elevate the functions of foreign-invested headquarters

▪ Focus on core functions like R&D, investment, clearing, etc.

3. Engage foreign companies in the build-up of modern industrial

system

▪ Further open up the service sector, support foreign investor to enter strat

egic emerging industries

ⅡⅡ Outlook on Shanghai’s Commerce in 2014

　　

Further strengthen service-oriented function

Use marketized, socialized and informatized

supervision

Let market, society and agency play their roles

Strengthen supervision during and after the

registration to activate market

Thank You ！

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