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 | Tuesday, April 18, 2000, updated at 19:59(GMT+8) | ||||||||||||
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Behind Booming PudongIn terms of economic growth, few places in the world could rival that of Pudong, whose gross domestic product increased 21 percent annually, from six billion yuan about 720 million U.S. dollars) to 80 billion yuan in a decade.As China celebrates the tenth anniversary of the opening-up and development of Pudong today, people are attempting to search answers to the mystery of its success. "Pudong today is closely related to China's resolute reform and opening-up policy," Ruan Yanhua, deputy director of the Pudong New Area Administrative Committee said. Located at the eastern bank of the Huangpu River in Shanghai, Pudong was largely an area consisting of shanty houses, dusty factories and farmland, neglected for centuries, until the Chinese government announced its development and opening to the rest of the world on April 18, 1990. The move is a strategy to reinvigorate Shanghai as an international trade and financial center, and to turn the city into a locomotive in the development of Yangtze River Valley. Since then, the 522-square-kilometer area has changed beyond recognition. Billions of U.S. dollars were poured into infrastructure construction, turning the area into a who's who of multinationals including GM, Siemens, Intel and Sharp. Nearly 6,000 companies from 67 countries and regions worldwide, including 98 of the world's 500 leading multinational, have invested some 29.4 billion U.S. dollars in Pudong. At the same time, more than 5,180 firms from other parts of China have established their subsidiaries, with a registered capital of 19.4 billion yuan. "Sound legal framework has guaranteed the smooth development of Pudong," said Prof. Zhou Hanmin at Shanghai Institute of Foreign Trade, who took part in formulating laws and regulations concerning Pudong's development. To protect the interests of investors, China has come up with more than 100 laws and regulations in different international languages, concerning lower taxes, bonded zones and other areas. Overall planning has been another factor contributing to the success of Pudong, experts said. The development of Lujiazui Finance and Trade Zone, for example, consulted master designers from Britain, France, Japan and Italy, thus avoiding haphazard construction. At present, Lujiazui's landscape is marked by a glittering collection of high-rises including Jinmao Tower, China's highest. According to a blueprint, Lujiazui will serve as an integral part of Shanghai's central business district, along with the Bund on the western side of the Huangpu River. Jim M. Lee, general manager of the Intel Technology (China) Ltd. , said that he was impressed by the working efficiency of local government officials, who are helpful in solving problems, like handling customs affairs. Huang Qifan, deputy secretary general of Shanghai Municipal Government, and chairman of Shanghai Economic Commission, believed that in Pudong, China introduced a new model of opening up and development. Different from Shenzhen or Hainan special economic zones in southern China, Pudong was developed in an area bordering a booming town, the Shanghai proper, while Shenzhen started from a fishing village and Hainan from an underdeveloped island. In addition, Pudong's development has focused on finance, trade and other service industries. The official said the Chinese government has been encouraging Pudong to take bold steps in reforms, making it an experimental field for the opening-up drive. For instance, in 1997, Pudong became the first place in China where foreign banks were allowed to handle Renminbi, the local currency. "Pudong is sure to become as active as London, New York, and Singapore in finance so long as it keeps on moving forward," said Toru Mitarai, president of the Sanwa Bank Shanghai Branch, whose business has kept expanding in China. Dr. Wang Lengyi, a member of the Shanghai Academy of Social Sciences, said that Pudong's success has been built on Shanghai's solid economic basis and promoted by its profound culture. Looking ahead, officials say Pudong will continue to lead the country's economic growth. "Pudong's future advantage lies in becoming a forerunner of China's deregulation in finance and trade after the country's entry to the World Trade Organization," said Hu Wei, executive deputy director of the administrative committee. Its geographical location, easy access to capital, abundant talented personnel and speedy delivery of information, will add to its superiority, Hu said when reviewing Pudong's first decade, and previewing the next.
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