From Farmland To Hightech Zone, Shanghais Pudong Mirrors Chinas Modernization Drive

At the recent China International Import Expo (CIIE), German automaker Mercedes-Benz displayed a refurbished car engine at its stand during a demonstration of the companies' new technologies and products at the Lingang New Area Pilot Free Trade Zone in China (Shanghai). zone: (FTZ) in Shanghai, East China.

Bustling Pudong International Airport also received an engine upgrade in early September. Imported from Volvo Construction Equipment (China), this example was the first of its kind in China.

Both cases were made possible by China's measures to open high-level free zones and free ports, announced by the State Council at the end of June.

In accordance with the measures, pilot programs will be implemented to import processed products into free zones or free ports.

“Compared with new products, recycled items can reduce energy consumption by 60%, and up to 70% of materials can be recycled, reducing carbon emissions by 80%,” said Chen Chaoping, vice president of Volvo Construction Equipment (China).

This new measure is just one of a number of innovative approaches that strengthen Pudong's reputation as the country's vanguard in promoting reform and opening up.

Pudong's transformation epitomizes China's push for modernization in recent decades.

When Pudong was declared a new area in 1990, it was still empty farmland, said Shao Yudong, then head of the Pudong Development Bureau.

"The construction of infrastructure in Pudong, such as roads, bridges, water supply, electricity and sewerage, was also completely inadequate at that time," Shao added.

In September 2013, Pudong was selected as the country's first pilot free zone, which plays an important role as a testing ground for institutional reforms.

Over the past decade, Pudong has achieved many successes through a series of bold efforts; founded the country's first wholly foreign-owned hospital, the first wholly foreign-funded state-owned enterprise, the first wholly foreign-owned automobile. - property of the production company.

Pudong has developed many innovative projects in 60 industries, such as automotive, financial services, value-added telecommunications, testing and certification.

Official data shows that 84,000 new companies were created in the Shanghai free trade zone between September 2013 and 2022, 2.35 times the number recorded in the region over the previous 20 years.

During the same period, more than 14,000 new foreign investment projects were implemented in the zone, with a total effective foreign investment of US$58.6 billion, meaning that more than US$10,000 of investment flows into the Shanghai FTZ every minute.

Today, Pudong is filled with glittering skyscrapers and is home to many modern businesses.

Occupying only 1/8000 of China's total area, Pudong contributed 1/74 of the country's GDP and became a model for the rest of the country on how to initiate reforms and achieve a new era of high-quality development.

As China moves closer to its two-hundred-year goal of establishing a modern socialist country, Pudong is also entering a new phase of development.

In 2021, China issued guidelines for supporting high-level reforms and opening up Pudong, and making the region a pioneer of socialist modernization.

By 2050, Pudong is expected to become a highly attractive, creative, competitive and globally influential major urban area, a global model of urban governance and a "shining pearl" of a large modern socialist country, the guide says.

In Lingang New Area, a special zone recently opened in the Shanghai Free Trade Zone in August 2019, new industrial clusters are becoming new engines of growth.

For example, new energy vehicles (NEVs) have become a priority sector in Lingang.

At Tesla's gigafactory in Shanghai, a finished car takes an average of 40 seconds to roll off the production line. In 2022, the annual production volume of electric vehicles in Ling'an New Area will exceed 230 billion yuan (about 32 billion US dollars).

With a strong industrial base and favorable policy support, the average annual GDP growth of Ling'an New Area has reached 21.2% in the past four years, and the average annual growth in the value of industrial output and fixed capital investment has been recorded. Excellent growth rates - 37.8% and 39.9% respectively.

In 2000, major construction equipment manufacturer Liebherr founded its first entirely foreign company in Waigaoqiao, Pudong Province. The company's growth was further enhanced by the establishment of the Shanghai Free Trade Zone. In 2019, Liebherr opened its headquarters in China, including a sales center, distribution center and aviation maintenance division in the Shanghai Free Zone.

“We are honored to grow together with the Shanghai FTZ. We also appreciate the support provided by ZLC. Also, in the future, we will continue to adhere to the principle of “We are in Shanghai to serve China” and bring the most advanced German car manufacturing technologies to China,” said Patrick Schulz, CEO of Liebherr China.

Bruce Sterling. Speculative Architecture (September 26, 2018)