China's largest metropolis Shanghai is working hard to increase its international competitiveness pending China's entry into the World Trade Organization (WTO), according to Mayor Xu Kuangdi.

As a major financial, industrial, trade and shipping center, Shanghai is likely to become the first city in China to encounter WTO impacts, said Xu who is attending an on-going annual session of the Ninth National People's Congress (NPC). The mayor said Shanghai has been making all-round preparations for the WTO entry over the past three years. He expressed his hope that the city could serve as a pilot for the rest part of the country in dealing with problems arising from the WTO entry.

Traditional sectors including textiles, light industry, metallurgy and building materials are expected to benefit from the accession to the WTO with their exports likely to increase or even become dominant in the world market.

However, the mayor confessed, greater international competition could challenge local industries like telecommunications, computer, automobile and pharmacy, which have grown as the city's main revenue sources over the past two decades.

To cope with a fiercer competition, Shanghai has sent many young professionals to developed countries for training, Xu said.

The economic powerhouse is accelerating state enterprises reform and encouraging them to cooperate with trans-national companies, according to the mayor.

So far, Shanghai has set up 23,000 foreign-funded firms and established two economic development zones in Latin America and Africa, respectively. He disclosed that the city is considering building an industrial zone in Central Asia.