- Also spelled:
- Shang-hai
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Manufacturing
For some time Shanghai has been the country’s leading industrial and manufacturing centre because of a distinctive combination of factors. Those include the availability of a large, highly skilled, and technologically innovative workforce; a well-grounded and broadly based scientific research establishment supportive of industry; a tradition of cooperation among producers; and excellent internal and external communication and supply facilities.
The iron and steel industry there was one of the earliest to be established in China. In the 1950s the blast furnace capacity of the industry was enlarged, and attempts were made to integrate the operations of the iron and steel industry more closely with the machine-manufacturing industry. Iron and steel companies started to build new facilities north of the city in the Baoshan area in the late 1970s; one of those, the Shanghai Baosteel Group Corporation, has been one of the world’s largest enterprises since the beginning of the 21st century.
Shanghai’s machine and machine tool industry has been especially important in China’s modernization plans. Among the varieties of industrial equipment produced are multiple-use lathes, wire-drawing dies, and manufacturing equipment for assembling computers and other electronic devices, precision instruments, and polymer synthetics.
The chemical and petrochemical industries are almost fully integrated, and there is increasing cooperation among individual plants in the production and supply of chemical raw materials for plastics, synthetic fibres, dyes, paint, pharmaceuticals, agricultural pesticides, chemical fertilizers, synthetic detergents, and refined petroleum products. Heavy industry (especially metallurgical and chemical) predominated until the late 1970s. Light industry is now favoured in an effort to reduce pollution, alleviate transport congestion, and compensate for energy and raw material shortages associated with heavy industry.
The textile industry has been reorganized to assure efficient utilization of the mills’ productive capacity at all stages of the manufacturing process. The textile mills cooperate in their use of raw materials and have established cooperative relationships with plants that manufacture rubber shoes, tires, zippers, industrial abrasives, and conveyor belts.
Shanghai is a primary source of a wide variety of consumer goods such as watches, cameras, radios, fountain pens, glassware, stationery products, leather goods, and hardware. Factories producing such goods have made a special effort to meet consumer demands and to produce durable and attractive products.
Commerce
The retail trade in manufactured consumer goods was managed by the First Commercial Bureau until the bureau was disbanded in 1995; trade is now more market-directed. A number of commercial corporations under the bureau were responsible for the wholesaling, distribution, and warehousing of specific commodity groups; those operations also have been reorganized into independent business groups. A separate corporation manages the larger retail stores, while the smaller retail establishments and some specialized wholesaling organizations are controlled by local commerce bureaus in the various districts of the city.
Finance and trade
Shanghai’s two major banks—the China Construction Bank and the Bank of China—function as administrative organs of the central government’s Ministry of Finance. They are responsible for the disbursement and management of capital investment funds for state enterprises. Two British banks, the Hong Kong and Shanghai Banking Corporation and the Standard Chartered Bank, along with other foreign banks, maintain Shanghai branch offices that underwrite foreign trade transactions and exchange foreign currency in connection with trading operations. Remittances from Chinese living in Hong Kong and abroad (mainly in Southeast Asian countries) are managed and collected by several overseas Chinese banks. Since the 1980s many more banks, both domestic and foreign-owned, have established operations in Shanghai.
Industrial products are exported from Shanghai to all parts of China. Imports are mainly unprocessed food grains, petroleum and coal, construction materials, and such industrial raw materials as pig iron, salt, raw cotton, tobacco, and oils. In domestic trade, Shanghai still imports more than it exports. In foreign trade, however, the value of exported commodities exceeds that of imported goods, and the proportion of manufactured exports is steadily increasing.
Transportation
Shanghai is one of China’s major transport centres. The central city is both a seaport and a river port, with the Huangpu River serving as an excellent harbour; at high tide, oceangoing vessels can sail up the river to the city.
In the early 1950s the harbour was divided into a number of specialized sections. Pudong, on the east bank of the Huangpu and in the Huangpu district, is used for the storage of bulk commodities and for transportation maintenance and repair facilities. Puxi, in the Nanshi district on the west bank, and Fuxing Island are the sites of general cargo wharves. Since then, oceangoing terminals along the Huangpu have been constructed at Zhanghuabang, Jungong Lu, Gongqing, Longwu, and Zhujiamen. More terminals constructed at the southern bank of the Yangtze, including those at Baoshan, Luojing, and Waigaoqiao, have greatly increased the handling capacity of the city’s port. A deepwater port operation off the coast at Hangzhou Bay started in 2005.
Heavily used inland waterway connections, via the Suzhou and Wusong rivers, and an extensive canal network are maintained with Suzhou, Wuxi, and Yangzhou in Jiangsu province and with Hangzhou in Zhejiang province.
The railway network reflects the efforts that have been made since 1949 to reorient the city’s industrial economy to balance export and domestic development needs. Shanghai is the terminus of two major rail lines south of the Yangtze—the Hu-Ning line, from Shanghai to Nanjing, and the Hu-Hang-Yong line, from Shanghai via Hangzhou to the port of Ningbo in Zhejiang province. A short spur line also runs from Shanghai to Wusong. Additional spur lines built since 1949 connect the industrial districts to the main trunk routes. In 2011 a high-speed rail line went into service between Shanghai and Beijing, which significantly reduced the travel time between the two cities.
Shanghai is served by two major airports. Hongqiao Airport, southwest of Shanghai, is now used mainly for domestic flights; Pudong International Airport, 19 miles (30 km) southeast of the city centre and on the bank of the Yangtze, has been in service since 1999 and has become one of China’s busiest. Both airports underwent major renovation and expansion prior to the 2010 world exposition.
Shanghai’s road network was improved and expanded considerably beginning in the late 20th century, notably with the construction of a network of express highways in and around the city. However, automobile use in particular rose dramatically, especially after 2000, resulting in frequent traffic jams and delays. Intraurban transport by light rail, electric trolleybus, trolley, and motorbus has been substantially improved since 1949. In addition, a high-speed maglev (magnetic-levitation) train line between Pudong Airport and central Shanghai began operation in 2003.