Shanghai's Pudong, a Dream Comes True

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Last updated at: (Beijing Time) Friday, October 25, 2002

Shanghai's Pudong, a Dream Comes True

When William Keller, president of China operations for the Swiss pharmaceutical giant Roche, set up his first workshop in the wilderness of Pudong 10 years ago, some people called him crazy.

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When William Keller, president of China operations for the Swiss pharmaceutical giant Roche, set up his first workshop in the wilderness of Pudong 10 years ago, some people called him crazy.

Now the jeers have been replaced by cheers. The Shanghai Roche Pharmaceuticals Company Ltd. has profited enormously from the president's vision and has expanded its factories to six with five based in Pudong.

"When I started my business in Shanghai in 1991, I built my factory on a piece of deserted farmland. Now, it has grown into a large company with an annual revenue of 300 million US dollars andeight subsidiary companies and 2,000 employees," Keller said.

Within a mere 12 years, the once deserted farmland, now the Pudong New District of Shanghai, has become one of Asia's most modern and prosperous business hubs and is moving towards becoming one of busiest in the world.

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Pudong, at the mouth of the Yangtze River Delta in east China, has built a bridge to show other parts of China the outside world.To keep a close watch on global changing commercial tides Chinese ministries and provincial authorities have established more than 50 office buildings in Pudong and have poured 35 billion yuan (4.2billion US dollars) into 6,300 investment programs in the district.

Over 30 large domestic companies like Baosteel, Delong Group and Hope Group have made their headquarters in Pudong, and 200 investment companies are queuing up, shelling out 150 billion yuan(18.1 billion US dollars) in registered capital.

More strikingly, Pudong's huge influx of foreign capital looks like dwarfing the investments in all other Chinse rival areas. So far the amount invested exceeds 40 billion US dollars bringing in finance for 8000 programs sponsored by businesses from 78 countries and regions.

Pudong now has trade ties with 135 countries and regions with 150 of the world's top 500 companies including Intel, GM and Simens investing in 200 programs. In addition, 30-plus multinationals such as Alcatel, Kodak and HSBC have relocated their regional headquarters to Pudong.

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During the past 12 years Pudong has seen its population soar to 1.2 million with one fourth in the middle and high-level talent range. This is five times more than in 1990 when the seeds were sown for the miracle. One sixth or 28,000 of returned Chinese who studied overseas, have settled in Pudong with high hopes for a promising career.

Because of its fast development Pudong has played a vital role in turning Shanghai into an international center of finance, trade and shipping, and in expediting the economic growth of the whole Yangtze River valley area.

The Pudong authorities are looking to open up even wider, and are aiming for an economy which is internationally advanced. It has rigorously cut red tape for a more efficient administration and to facilitate economic progress.

The government has cut out 292 steps in their program approval systems. Faster clearance procedures now allow incoming and outgoing air freight at Pudong's Waigaoqiao Bonded Zone to be cleared within six hours instead of the previous 72 hours.

The acceleration is best illustrated by the erection of 600 high rise buildings of 30 or more stories in 12 years, with building approvals for each taking an average of 12 days.

Two huge, state-of-the-art bridges now cross Shanghai's Huangpu River, conveniently linking Pudong with west Shanghai, the centre of the city. For traffic expedience another big bridge and three under-river tunnels areunder construction.

In addition, the world first magnetic levitation railway line is about to be completed for commercial use, linking the Pudong International Airport with downtown Shanghai.

Vice Mayor Zhou Yupeng says Pudong is stepping up a modern service industry with focus on finance and insurance, as well as new and hi-tech industries weighting towards chips, software and biological medicine.

Statistics show that new and hi-tech industries make up half of Pudong's manufacturing output in Pudong with 96 percent of contracted overseas investment going to hi-tech projects with a capital value of 10 million US dollars or more.

Zhangjiang, a special base for hi-technology in Pudong, is on afast track to grow into a leading center of chip-making and biomedical products.

Its high-speed development has turned Pudong into a global arena for world-class contenders. It has 130 Chinese and foreign financial institutions, 4000 trade companies, 30 multinationals' regional headquarters, 80 multinationals' research and development centers, and sponsors annually more than 100 international conventions and exhibitions.

Pudong with only a twelfth of Shanghai's territory and a tenth of its population, contributes one fifth of the city's total GDP and a quarter of its exports now. The per capita GDP of Pudong has rocketed from 1000 US dollars in 1990 to 7700 US dollars in 2001.

The fast-changing landscape in Pudong is not only made up of skyscrapers for business people but also for new settlers who have set up their homes in cleverley designed residential compounds with outstanding infrastructure.

As well as modern workshops in a number of development zones the rapidly changing street make-up in Pudong have astounded Keller.

He said it was hard for him to find a sports field or a picnic ground near his house when he first came to the area. Now many green areas decorate Pudong, making life easier and more comfortable with facilities for education, health, culture and entertainment mushrooming around every corner.

Shanghai people in Shanghai used to be unwilling to move to the once underdeveloped Pudong but the population is increasing by 100,000 each year. As a result the house market is booming and sales are the highest in Shanghai.

More than 20,000 foreigners live in Pudong, and over 10 international residential communities have been built for foreigners working in Pudong, and their families.

The 100,000-square-meter central green area at Lujiazui, Pudong's Manhattan, cost the government one billion yuan (120 million US dollars) to relocate 3000 households and 60 enterprises to it. In Pudong the average public green area per person has surged from half square meter to 15 sq m, and vegetation coverage has grown from 8.4 percent to 35 percent contributing to the district's listing as a state first-class garden district.

An overseas businessman planned to invest 35 million US dollars in a textile project in Pudong but failed to get approval. The district rejects polluting industries in order to build an area where people can live with blue skies, green land and clear water, according to urban planning authorities of the district.

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