2014 Briefing on Shanghai’s
Commerce and Investment
Shang Yuying
Chairwoman
Shanghai Municipal Commission of Commerce
Ⅰ
Shanghai's Commerce Development in 2013
Ⅱ
Outlook on Shanghai's Commerce in 2014
Ⅰ
1
Shanghai's Commerce Development in 2013
Deepened international trade center construction
1. Unveiled China (Shanghai) Pilot Free Trade Zone.
▪ A new foreign investment management model with preestablishment 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.
Ⅰ
Shanghai's Commerce Development in 2013
1
Deepened international trade center construction
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%.
Ⅰ
Shanghai's Commerce Development in 2013
2
Improved market circulation system
•
<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>
Four breakthroughs in commerce
Merchandise Sales
>Bulk commodities
Retail sales of social
consumer goods
>Jewelery
>Household appliance
>Communication appliance
Over RMB 6000 bn
up by 12.5% YoY
Over RMB 2.5 tn up by 8.1%
Over RMB 800 bn
RMB 22.335 bn
up by 8.6% YoY
up by 41%
RMB 35.327 bn up by 13%
RMB 14.034 bn up by 35.2%
E-business Transaction
Over RMB 1000 bn
>online shopping
Nearly RMB 200 bn
Tax Revenue
Over RMB 200 bn
up by 35% YoY
up by 8.4% YoY
Ⅰ
3
Shanghai's Commerce Development in 2013
Optimized foreign capital utilization
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 oneseventh of China, increasing for 14 years consecutively.
Ⅰ
3
Shanghai's Commerce Development in 2013
Optimized foreign capital utilization
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%
Ⅰ
Shanghai's Commerce Development in 2013
3
Optimized foreign capital utilization
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
……
Ⅰ
Shanghai's Commerce Development in 2013
3
Improved Efficiency in Utilizing Foreign Capital
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
financial service sectors are flourishing, such as equity investment,
venture capital investment, insurance brokerage, currency exchange
and third party payment.
US "DreamWorks"
HCA (Hospital
Corporation of
America)
Shanghai Oriental DreamWorks Culture
Communication CO，LTD
Shanghai Oriental DreamWorks Technology
Company
Shanghai Weizhan Hospital Management
Ⅰ
Shanghai's Commerce Development in 2013
4
Optimized Structure for Foreign Trade
First, annual trade in goods witnessed slight increase.
Total import and export volume reached $441.398 billion, up by 1.1% year on
year, accounting for 1/10 of China's total; among which, export volume was
$204.244 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-intensive products remained steady, while import of consumer goods grew
fast.
Proportion of Import and
Export
Total import and export (billion)
2371.55
3.1%
2042.44
1.2%
Shanghai
other provinces
and municipalities
进口总额
import
2012年
出口总额
export
2013年
Ⅰ
4
Shanghai's Commerce Development in 2013
Optimized Structure for Foreign Trade
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 trade
export of processing trade
Ⅰ
4
Shanghai's Commerce Development in 2013
Optimized Structure for Foreign 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.
1.5%
EU
4.6%
US
Japan
3.9%
Ⅰ
4
Shanghai's Commerce Development in 2013
Optimized Structure for Foreign Trade
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 value 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% year-on-year increase.
Import and Export of
Trade in Service
Ⅰ
5
Shanghai's Commerce Development in 2013
Improved Quality and Level of "Go Global"
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
Enterprises Overseas>, by the end of 2012, Shanghai enterprises
accumulatively had ￥448.6 billion overseas assets under management,
generating ￥396.8 billion in revenue.
Ⅰ
5
Shanghai's Commerce Development in 2013
Improved Quality and Level of "Go Global"
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
Ⅰ
5
Shanghai's Commerce Development in 2013
Improved Quality and Level of "Go Global"
3. In terms of investors
Private companies accounted for 48.6% of the investment, a 9.1%
increase year on year
4. 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
Ⅰ
Shanghai's Commerce Development in 2013
Ⅱ
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
reforms and innovation, pursue innovation-driven development and
economic transformation, as well as gear towards a case-and-demand
oriented model. we will take the historic opportunity of China (Shanghai)
Pilot Free Trade Zone to create a openness oriented new economic system
and a modernized market system, with a greater focus on improving quality
and efficiency, having long-term vision, and insuring stability. we will put
more emphasis on key issues and spare no effort to realize speed
acceleration on 6 fronts and quality improvement on 6 fronts, aiming to
build an "upgraded" International Trade Center.
Ⅱ
Outlook on Shanghai’s Commerce in 2014
Expectation for major
commercial development indicators in 2014
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
Ⅱ
1
Outlook on Shanghai’s Commerce in 2014
Accelerated implementation of the
international trade center initiative
1. steady implementation of international trade center initiative
▪Enrich the Ministry-Municipality Cooperation Framework and set new targets for
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
Investment 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
Companies' Headquarters to Promote Trade Development>
Ⅱ
2
Outlook on Shanghai’s Commerce in 2014
Accelerate the transformation
of commerce
a well-connected circulation center
Accelerate the transformation
of traditional business district
Accelerate the transformation
of traditional commercial
enterprises
a cluster of all kinds of trade activities
to
create
a prosperous consumption destination
Accelerate the transformation
of business models
a Eco-friendly place to live and work
Ⅱ
3
Outlook on Shanghai’s Commerce in 2014
Accelerate the cultivation of new
business models
1. Comprehensively develop platform economy
▪Establish a group of commodity trade and resource allocation platforms in areas
like steel, non-ferrous metal, chemicals, oil and gas to double the trade volume
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
Ⅱ
4
Outlook on Shanghai’s Commerce in 2014
Accelerate the pace of
local companies "Go global"
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
Ⅱ
5
Outlook on Shanghai’s Commerce in 2014
Accelerate the optimization of
foreign trade structure
1. Optimize the structure of traditional foreign trade with a focus on
enhancing core competitiveness
▪combining trade with industries: key areas include strategic emerging industries and
advanced manufacturing industries like civil aviation, maritime
engineering equipment,
alternative energy, high-end equipment, etc. The aim is to enhance export capacity
▪coordinate development between import and export: well utilize professional trade
platforms, strengthen Shanghai ports' distribution function and expand import and export
2. Optimize the structure of trade in services with a focus on service export
capacity
▪<Shanghai Trade in Service Promotion Catalog>: transportation, tourism, professional
services, 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
Ⅱ
6
Outlook on Shanghai’s Commerce in 2014
Accelerate interactive development of MICE,
Commerce, Tourism and Culture industries
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,
Commerce, Tourism and Culture industries"
▪Comprehensively collect information about recent shows, sales promotions,
cultural activities, sport events, travel routes, scenic spots, etc.
Ⅱ
7
Outlook on Shanghai’s Commerce in 2014
Improve the quality of
market system
1. Complete the mercandise market system
▪Improve the layout of markets' space and improve services in finance,
logistics, information, etc.
2. Comprehensively develop modern logistic industry
▪Develop a multi-layered logistic service system with standardized,
informatized and organized industry operation
3. Establish order in the market
▪Protect IPR and crack down on IPR infringement
Ⅱ
8
Outlook on Shanghai’s Commerce in 2014
Improve the development quality of
livelihood related service industry
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"
28
Ⅱ
9
Outlook on Shanghai’s Commerce in 2014
Improve the quality of
utilizing foreign capital
1. Optimize the investment environment for foreign investors
▪introduce the administrative model of "letter of commitment plus
standardized 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
strategic emerging industries
Ⅱ
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 ！