Press release for the media briefing of the Shanghai Municipal Government on June 15, 2023

2023.06.16

On the afternoon of yesterday (June 15), the Information Office of Shanghai Municipality held a press briefing. Vice Mayor Li Zheng introduced the details of the Three-Year Action Plan of Shanghai for Promoting the High-quality Development of the Manufacturing Industry (2023-2025). Wu Jincheng, Director of the Shanghai Municipal Commission of Economy and Informatization, Wei Dong, Deputy Director of the Shanghai Municipal Planning and Natural Resources Bureau, Tao Changsheng, Chief Economist of the Shanghai Municipal Financial Regulatory Bureau, Chen Dong, Chief Economist of the Shanghai Municipal State-owned Assets Supervision and Administration Commission, and Wu Xiaohua, Deputy Secretary of the Party Working Committee of Lingang New Area, attended the press briefing and answered questions from reporters. Manufacturing forms a bedrock of the nation and serves as a crucial pillar for building a strong country. It is a vital support for the real economy and serves as the material foundation for Shanghai’s aspiration to establish itself as a modern socialist international metropolis. With a deep commitment to implementing strategies such as manufacturing prowess, quality enhancement, and Digital China, we aim to foster robust growth in the real economy. Recognizing the indispensable role of the manufacturing industry in driving transformation and innovation within the city’s economic development, we are at the forefront of charting a new path for industrialization that aligns with the characteristics of the new era. Our relentless pursuit is to achieve high-quality development. In line with this vision, the General Office of the Shanghai Municipal Government has recently released the Three-Year Action Plan of Shanghai for Promoting the High-quality Development of the Manufacturing Industry (2023-2025).I. Overall considerations of the Action PlanThe 20th National Congress of the Communist Party of China underscored the importance of focusing on the real economy for sustainable economic development, advancing new-type industrialization, and expediting the construction of a manufacturing powerhouse. In alignment with this directive, the CPC Shanghai Municipal Committee and the Shanghai Municipal Government’s top leaders have diligently studied and directed industrial development efforts across various sectors throughout this year. They have presented clear objectives and requirements. The formulation of the Action Plan is not only a mandate for executing the national strategic agenda but also serves as a roadmap for our city to promote the high-quality development of the manufacturing industry. In this regard, three key considerations have primarily shaped the plan:The first consideration is to effectively implement the requirements of the national strategy. We will fully embrace the essence of General Secretary Xi Jinping’s significant instructions regarding advanced manufacturing development. In accordance with the deployment outlined by the CPC Central Committee and the State Council, and under the guidance of relevant state ministries and commissions, our primary focus will be on promoting the intelligent, green, and integrated development of the manufacturing industry. We will exert every effort to establish a robust growth pole for high-end manufacturing.The second consideration is to prioritize stable growth and facilitate progress. The CPC Shanghai Municipal Committee and the Shanghai Municipal Government attach great importance to the development of the manufacturing industry. We are committed to maintaining steady growth and robust investment to ensure the stable and healthy development of the city’s economy. Moreover, we recognize the potential presented by the technological advancements driving industrial transformation. Therefore, we will actively promote the deep integration of the innovation chain, industrial chain, capital chain, and talent chain. By doing so, we aim to comprehensively enhance the core competitiveness of the manufacturing industry. The third consideration is to emphasize the coordinated pursuit of goals and tasks. As a guiding document for promoting the high-quality development of Shanghai’s manufacturing industry over the next three years, the Action Plan aligns with the objectives of the 14th Five-Year Plan. Simultaneously, it optimizes and improves the tasks and measures for the manufacturing industry’s development, taking into account the evolving trends and opportunities in our dynamic economic landscape.II. Main Elements of the Action PlanThe Action Plan comprises three primary components, namely the main objectives, priority tasks, and supporting measures. Firstly, it sets clear main objectives. By the year 2025, the Action Plan aims to consolidate and strengthen the “2+(3+6)+(4+5)” modern industrial system. This will be achieved by surpassing an industrial added value of 1.3 trillion yuan, which will account for more than 25% of the regional GDP. Additionally, specific indicators have been identified to address crucial aspects such as the leading role of high-end manufacturing, the capacity to foster independent innovations, the digital and green transformation, as well as the vitality and competitiveness of enterprise development.Secondly, the Action Plan outlines key tasks, consisting of 6 major actions and 22 specific tasks.The first major action focuses on key industries and entails implementing actions to upgrade the industrial supply chain. This includes promoting the development of three leading industries to establish world-class industrial clusters. It further involves accelerating the integration between advanced manufacturing and productive service industries. The plan seeks to create four industrial clusters in electronic information, life and health, automobiles, and high-end equipment, each exceeding a trillion yuan in value. Additionally, two industrial clusters in advanced materials and fashion consumer goods, with a value of 500 billion yuan each, will be cultivated. Furthermore, the plan aims to nurture a batch of 100-billion-level industries in specialized fields. It also emphasizes the acceleration of the “four new tracks” and “five future industries,” fostering the integration of advanced manufacturing with modern service industries.The second major action focuses on key technologies and entails strengthening the foundation and building a robust technological framework. The plan involves launching projects for industrial infrastructure reengineering and major technical equipment research, with over 100 key projects to be implemented annually. It also prioritizes the construction of manufacturing innovation facilities and the establishment of various national and municipal innovation platforms. The plan encourages “chain-leading” enterprises to spearhead open innovation consortia and emphasizes the development of manufacturing quality brands.The third major action centers on industrial upgrading and advocates for the implementation of actions to achieve a digital transformation. This entails expediting the digitalization of traditional manufacturing processes and enhancing the digital competitiveness of the manufacturing sector. Specific initiatives include the implementation of a smart factory pilot plan, with the aim of establishing 20 benchmark smart factories and 200 demonstration smart factories. Additionally, the plan supports the “Industrial Empowerment” action plan, which involves building 30 industry-wide industrial Internet platforms and cultivating 40 “Industrial Empowerment Leader” enterprises. To facilitate digital transformation, the plan also provides support through initiatives such as “smartness assessment coupons” and “computing power coupons,” enabling enterprises to access digital diagnostic services and purchase computing power resources.The fourth major action centers on energy conservation and carbon reduction, emphasizing the implementation of green leadership initiatives. A primary focus is placed on the advancement of green and low-carbon practices. This includes promoting innovation in low-carbon, zero-carbon, and carbon-negative technologies, as well as conducting product carbon footprint accounting and carbon efficiency evaluations. Key industries will undergo various energy-saving and carbon reduction technology transformation projects, and green and low-carbon demonstration parks will be established. Additionally, the plan targets the elimination of approximately 500 outdated production capacities annually. Efforts will be made to enhance the green manufacturing system by constructing green factories, green supply chains, green parks, and other eco-friendly infrastructure.The fifth major action emphasizes both introduction and cultivation of enterprises while supporting their growth. The plan aims to strengthen the development of leading enterprises, technology-oriented enterprises, and “specialized, special, and new” enterprises, thereby expanding the pool of exceptional manufacturing enterprises. It includes the addition of 15 new manufacturing enterprises with an output value exceeding 10 billion yuan. Approximately 50 leading enterprises will be dynamically nurtured, the establishment of manufacturing headquarters will be expedited, and a continuous focus will be placed on cultivating science and technology enterprises, including “unicorns” and “gazelles.” The plan also aims to achieve a total of 10,000 municipal-level “specialized, special, and new” enterprises. Furthermore, significant efforts will be made to promote the transformation of small and medium-sized enterprises to enterprises above the designated size. The sixth major action centers on space expansion in relation to industrial projects. The plan entails optimizing the spatial layout of the manufacturing industry to enhance industrial economic density. It emphasizes the use of industrial maps as a guiding tool for investment promotion and aims to develop several major industrial projects. Furthermore, the plan emphasizes accelerating manufacturing growth in regions such as Pudong, Lingang, the five new cities, and the north-south transformation areas. It calls for the construction of high-standard characteristic industrial parks, which will facilitate clustering, ecological sustainability, and integration. The plan also advocates for the revitalization of inefficient industrial land through initiatives such as the promotion of industrial activities in high-rise buildings. Thirdly, robust supporting measures will be implemented to support the high-quality development of the manufacturing industry. These measures are organized around five key aspects: working mechanism, comprehensive elements, internal and external opening-up, science and technology, and financial services, as well as industrial talent. In terms of the working mechanism, efforts will be made to strengthen the coordination and collaboration between the municipal and district levels. An efficient and coordinated promotion mechanism will be established to ensure the effective implementation of the goals and tasks outlined in the Action Plan.Shanghai is well positioned to capitalize on its solid foundation in developing the real economy and promoting the high-quality development of the manufacturing industry. The city will strive to build an innovation hub and a world-class industrial cluster with global influence, aligning with the objectives outlined in the Action Plan. Shanghai extends a sincere invitation to outstanding enterprises, innovative talents, and entrepreneurial individuals both domestically and internationally, urging them to seize new development opportunities and collaborate in writing a new chapter of excellence for “Made in Shanghai.”