Under the new international and domestic situation, Shanghai should focus on accelerating the construction of the "Five Centers", coordinate and guide all aspects of economic and social development, continue to improve the city's energy level and core competitiveness, and accelerate the construction of a socialist modernization with world influence. International metropolis.

International benchmarking and future tasks for the construction of Shanghai's "Five Centers"

1. Shanghai International Economic Center

1. International benchmarking: Shanghai has now ranked among the global economic center cities and become an important hub of the global economic system

According to the "Global 500 Cities (2022)" report of the Massachusetts Institute of Technology's World Urban Laboratory, Shanghai ranks 8th in the list of the Global 500 Cities. Among them, Shanghai ranks highest among individual indicators of economic ability. On August 21, 2023, the Globalization and World Cities Research Network (GaWC) released the latest "World Cities Directory 2022" report, including a total of 37 "World's First-tier Cities" ranked above "Alpha (+/-)" level. Shanghai continues to rank fifth (Figure 1), ranks in the "A+" ranks with Singapore, Paris, and Tokyo (Table 1), and ranks among the world's top cities with high agglomeration and service capabilities.

Figure 1 GaWC World City Rankings 2000-2022

Table 1 GaWC World City Ranking Series (2022)

Source: GaWC official website of Loughborough University, UK.

2. Future tasks: Enhance the status of the international economic center and the influence of global governance

Looking to the future, Shanghai must strive to become one of the international economic centers with the strongest comprehensive strength, the strongest resource allocation capabilities, and the strongest innovation leadership that matches the new global status of China's economy, and ranks at the forefront of the world's first echelon. The key to achieving the above goals is to ensure that the economic aggregate continues to increase in cities around the world.

The first is to create a future highland for high-end industries.Continue to promote the innovative development of the "three leading industries" and "six key industries", accelerate the seizure of new tracks for industrial development, actively lay out future industries, link the Yangtze River Delta to create world-class industrial clusters, and form a high-end industrial structure that leads the Asia-Pacific and global economy., forming huge radiating energy.

The second is to gather more high-energy market entities.Further deepen reforms, improve market economic systems that are compatible with international economic center cities, and form a good institutional environment to attract and accommodate various market entities. Develop a higher-level headquarters economy, help international and local multinational companies expand their operations in Shanghai from China to the Asia-Pacific region and the world, and cultivate a group of truly leading global operations companies.

The third is to strengthen the global resource allocation function.Taking the opportunity of Pudong New District's high-level reform and opening up and building a leading area for socialist modernization, we will give full play to the role of the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone, accelerate the exploration of policy breakthroughs such as capital, tax system, data, and talents, and promote the facilitation and free flow of high-end factors in key areas.

(2) Shanghai International Financial Center

1. International benchmarking: insufficient financial service capabilities and low level of internationalization of financial markets

When the Global Financial Centers Index (GFCI) was first released in 2007, Shanghai ranked 24th, but Shanghai ranked 3rd in the second half of 2020 and the first half of 2021, and then dropped in the ranking, ranking 6th in the first half of 2024 (Figure 2). The construction of Shanghai's international financial center has achieved remarkable results, but there are still many shortcomings in benchmarking against the world's leading international financial centers such as New York and London.

First, financial service capabilities are insufficient.The main manifestation is the lack of industry influence of headquarters-based financial institutions. In terms of the number of headquarters of the world's top 500 financial institutions, there are only three in Shanghai. In the field of asset management, among the top 10 asset management companies in the world (IPE Top 500 list), 9 companies are headquartered in the United States, including 4 in New York and none in China.

Second, the level of internationalization of financial markets is not high.The main manifestations are the low participation of international investors, the small number and small scale of international varieties, the slow internationalization of RMB, inconvenient cross-border capital flows, and insufficient international integration of the institutional environment.

2. Future tasks: Enhance the competitiveness and influence of Shanghai International Financial Center

Looking to the future, Shanghai must further build an international financial center, not only implement high-level financial opening up and improve the internationalization level of financial markets, but also enhance security and controllability capabilities to better serve the real economy, technological innovation and joint construction of the "Belt and Road".

The first is to further deepen reform and opening up in the financial sector, create a more international financial institution system, accelerate the development of multi-level capital markets, support the innovative development of diversified financial markets, enhance the global pricing power and influence of Shanghai's financial markets, and promote the free trade pilot zone and Lingang New Area Financial opening up pilot areas.

The second is to further enhance the internationalization of the RMB, promote the free use of the RMB and the convertibility of capital accounts, and develop offshore RMB transactions and cross-border trade settlement.

The third is to further strengthen the construction of the financial system, improve the financial risk prevention and resolution mechanism, explore the establishment of a unified and efficient financial supervision system in Lingang New Area that is in line with international standards, actively connect with and deeply participate in the formulation of cross-border regulatory rules, and strive to improve modern financial supervision capabilities.

Fig. 2 2016-2024 Changes in Shanghai's ranking as global financial centers in 2009 Source: Z/Yen official website.

(3) Shanghai International Trade Center

1. International benchmarking: Shanghai has become the world's largest trading port city and ranks among the top cities in the world in attracting foreign direct investment

In 2022, Shanghai's total import and export volume will reach US$627.23 billion, surpassing New York, which ranks second, by nearly US$100 billion. Compared with China Hong Kong and Singapore, the total port trade volume of Shanghai International Trade Center is relatively large, but the development of offshore trade lags behind. In terms of attracting foreign direct investment, Shanghai ranks third, second only to London and New York, according to the research institute of the Financial Times, ranking future global urban FDI strategies from 2021 to 2022, and has strong global appeal.

2. Future tasks: Promote the quality improvement and upgrading of the International Trade Center

Looking to the future, there are three key requirements to promote the quality and upgrading of the Shanghai International Trade Center: First, align with high-standard international economic and trade rules, mainly benchmark CPTPP (Comprehensive and Progressive Agreement on Trans-Pacific Partnership) and DEPA (Digital Economy Partnership Agreement), putting forward high-standard requirements that are more in line with the development of the market economy and a better business environment. The second is to enhance the function of a trade hub, become an important hub in the global industrial chain, supply chain, and value chain, and accelerate the formation of an internationally competitive trade and investment policy and institutional system. The third is to promote the high-quality development of new trade formats, promote the development of new business formats and new models such as offshore trade and cross-border e-commerce, as well as the innovative development of service trade, digital trade, and green trade.

(4) Shanghai International Shipping Center

1. International benchmarking: Shanghai has become the world's third largest shipping center after Singapore and London

The "International Shipping Center Development Index Report" released by China Economic Information Agency and the Baltic Exchange shows that Shanghai has risen from the seventh place in the world for the first time in 2014 to the third place in 2023 (Figure 3), and has stabilized for the third place in the world for five consecutive years in 2019-2023. The Xinhua Baltic International Shipping Center Development Index over the years shows that Singapore has been ranked first for a long time with absolute advantage, and London is still highly competitive. However, Shanghai's score has grown rapidly in recent years and is constantly narrowing the gap with London. It is expected to overtake London in the near future and ranks second.

Figure 3 Xinhua Baltic International Shipping Center Development Index Ranking from 2014 to 2023 Source: China Economic Information Agency.

2. Future tasks: Improve the global allocation capacity of shipping resources of Shanghai International Shipping Center and accelerate the filling of shortcomings in the high-end shipping service industry

Looking to the future, Shanghai should base itself on shipping services, strengthen the high-end shipping service industry that occupies the upper reaches of the value chain of the international shipping industry chain, improve resource allocation capabilities, deeply integrate into the international shipping governance system, and achieve the upgrading and development of an international shipping center.

The first is to improve international professional service capabilities.Build the Shanghai Shipping Exchange into the most influential shipping index publishing platform in China and promote the listing of shipping derivatives such as shipping index futures. Build an international maritime justice center and an Asia-Pacific maritime arbitration center, and actively create a preferred place for maritime dispute resolution. Build a shipping insurance market with international influence and support local shipping service institutions to set up branches overseas. Actively participate in the formulation and revision of international maritime technical rules and standards. Support main-base airlines to build world-class intercontinental transit centers.

The second is to promote the agglomeration of high-end shipping service elements.Actively promote the construction of seven major shipping service function clusters, and support the promotion of modern port and aviation services, shipping information, shipping finance, maritime law, shipping culture and other professional service elements gathered in Shanghai through market-oriented means such as mergers and reorganizations, capital integration, and platform integration, as well as regional integration. Vigorously attract and cultivate international and national shipping professional organizations and functional institutions.

The third is to build an international shipping supply chain management center.Support the construction of shipping supply chain collaboration platforms and vigorously cultivate new shipping supply chain service enterprises. Give full play to the strong advantages of industrial chain and supply chain system agglomeration in the Yangtze River Delta region and attract core global shipping companies to set up supply chain management headquarters or platforms in Shanghai.

(5) Shanghai International Science and Technology Innovation Center

1. International benchmarking: Shanghai ranks third among the global scientific research cities

Since 2017, the journal Nature has ranked 500 cities around the world based on the contribution of cities (or metropolitan areas) published papers in 82 high-level journals in the previous year. According to its 2023 report, Shanghai ranks third among the global scientific research cities (Figure 4). In the 2023 Global Innovation Index, the Shanghai-Suzhou science and technology cluster ranks fifth in the world. The "International Science and Technology Innovation Centers Index 2023"(GIHI2023) report shows that Shanghai ranks 10th in the world in scientific and technological innovation capabilities.

Figure 4 Shanghai's ranking in the Nature Index from 2017 to 2023. Source: Natural Group official website.

2. Future tasks: Further strengthen the function of scientific and technological innovation sourcing

Looking to the future, Shanghai must strive to achieve new scientific discoveries, new technological inventions, new industrial directions, and new development concepts from scratch.

The first is to improve the level of basic research in key areas, further increase the proportion of Shanghai's basic research investment in the whole society's R & D investment, and promote the investment of enterprises and social institutions in basic research.

The second is to strengthen research on key core technologies, take scientific and technological innovation as the guide, promote the transformation and upgrading of traditional industries, accelerate the cultivation of world-class high-end industrial clusters, and accelerate the construction of a modern industrial system.

The third is to improve the system and mechanism for the integrated development of science and technology innovation industries, accelerate the construction of large-scale facility clusters in the fields of photonics, life, energy, materials, oceans, etc., fully promote the construction of Zhangjiang's national-level comprehensive science center, and strive to enhance the innovation power and vitality of enterprises, and provide industrial innovation provides effective support.

2. Some thoughts on accelerating the construction of Shanghai's "Five Centers"

The central government's document supporting Shanghai in accelerating the construction of the "Five Centers" puts forward the overall requirements of the "Five Persistences", namely, upholding and strengthening the party's overall leadership, insisting on serving the overall situation, adhering to the people-centered development philosophy, insisting on deepening reform and opening up, and adhering to the system concept. To implement the overall requirements of the "Five Persistences", the key is to work hard on the "Five Intensification" and the "Five Coordinations".

(1) Highlight the "five enhancements"

1. Strengthen national strategies

To accelerate the construction of the "Five Centers", we must stand at the height of national strategy and achieve "four places": Put it on the central government's strategic positioning for Shanghai's development, in the context of economic globalization, in the overall national development pattern, and in the country's overall deployment of the Yangtze River Delta development, improve strategic thinking, strategic grasp, and strategic operation capabilities, creatively implement the central government's strategic deployment, and enhance the influence and voice of the "Five Centers" in serving the whole country and participating in global cooperation and competition.

2. Strengthen benchmarking and first-class

The strategic positioning of Shanghai is to build a modern socialist international metropolis with world influence. The construction of the "five centers" must be compatible with the strategic positioning of Shanghai's city and should also be at the top and first-class level in the world. In the next step, we must target leading and top global cities such as New York, London, and Tokyo, focus on the gaps and shortcomings in the construction of the "Five Centers", benchmark against the highest international standards and best levels in various fields such as finance, trade, shipping, and science and technology, and accelerate the comprehensive shift from "following and running" to "running in parallel" and "leading".

3. Strengthen open leadership

Opening up is Shanghai's biggest advantage and a key starting point for promoting the construction of the "Five Centers" and improving the energy level and core competitiveness of the "Five Centers". Under the overall deployment of the country, we must vigorously promote pioneering reforms and leading opening up, accelerate the promotion of two-way financial opening up, the development of innovative drugs and medical devices, and cross-border data flow, and continue to create a market-oriented, legal, and international first-class business environment., further integrate into the global economic system, and accelerate the formation of an internationally competitive policy and institutional system.

4. Strengthen linkage development

The functions and positioning of the international economic center, financial center, trade center, shipping center, and scientific and technological innovation center are not separated from each other, but are integrated and organically unified. Accelerating the construction of the "Five Centers" is not simply to promote the individual and independent development of various fields of economy, finance, trade, shipping and science and technology, but to strengthen the synergy effect, plan and promote it in a coordinated manner, make breakthroughs in key areas, and promote the coordinated development, coupling, symbiosis, and mutual empowerment of the "Five Centers".

5. Strengthen bottom-line thinking

From the current and future perspective, the international situation facing my country's development is complex and severe. The construction of Shanghai's "five centers" is also facing many risks and challenges. For example, the construction of a science and technology innovation center is subject to external "stuck necks" and blockades, and the financial market's ability to withstand external risks still needs to be improved. Therefore, to accelerate the construction of the "Five Centers", we must keep in mind that security is the prerequisite for development and development is the greatest security. We must strengthen the construction of security capabilities in key areas of the "Five Centers", improve the ability to prevent and resolve major risks, and strive to achieve high-quality development and A positive interaction with high-level security.

(2) Strengthen the "five overall plans"

1. Coordinate domestic and international issues well and greatly enhance the internationalization of the "Five Centers"

This is not only the need for Shanghai's own development, the need to serve the whole country, but also the need to participate in international competition. To accelerate the construction of the "Five Centers", we must be based on the domestic market and face the world. We must not only enhance the service and radiation functions to the whole country, but also accelerate the improvement of the level of "internationalization", strengthen global resource allocation capabilities, attract and gather global factors, and form a face The global trade, investment and financing, production, service and innovation networks continue to strengthen the central node of the domestic cycle and the strategic link functions of the domestic and international dual cycles.

2. Coordinate the scale and functions and greatly enhance the soft and hard power of the "Five Centers"

To promote the breakthrough and upgrading of the "Five Centers", we must not only continue to expand the factors and market scale, but also strengthen the energy level and optimize functions in the large-scale process, so as to form influence, competitiveness and global discourse that match the scale. Right to continuously improve the core competitiveness of the "Five Centers". In the construction of an international shipping center, we must grasp the development trend of international shipping of large-scale ships, deep-water ports (waterways), transportation trunk lines, and operation alliances, continue to increase the throughput scale, and accelerate the improvement of high-end international shipping service functions.

3. Coordinate development and transformation and greatly improve the digitalization and greening level of the "Five Centers"

It is necessary to adapt to the two major trends of digitalization and greening in today's world and promote the transformation and upgrading of the "five centers". In terms of the construction of an international financial center, we must vigorously develop digital finance and green finance, and accelerate the construction of a financial technology center and an international green finance hub; in terms of the construction of an international trade center, we must actively respond to the "carbon barriers" of developed countries and accelerate the promotion of high-carbon export industries. Transformation and upgrading; in terms of the construction of an international shipping center, we must accelerate the green and intelligent transformation of shipping and promote the international shipping center to achieve higher-quality development on the new green, low-carbon, and digital intelligent track.

4. Coordinate onshore and offshore, and significantly improve the opening level of the "Five Centers"

Offshore business is an important foundation for high-level opening up. The scale of offshore business reflects international market competitiveness and the ability to allocate global market resources. In view of the lagging development of offshore finance and offshore trade in Shanghai, the internationalization degree of the "Five Centers" and the global resource allocation functions being restricted, we should give full play to the favorable conditions for undertaking national strategies, vigorously develop offshore finance, offshore trade and other offshore businesses, build a central hub for coordinating the development of onshore business and offshore business, and accelerate the improvement of the energy level and internationalization of the "Five Centers".

5. Coordinate the construction of single center and multi-center linkage to greatly improve the coupling efficiency of the "five centers"

The construction of the "Five Centers" must adhere to the system concept, focus on cross-cutting areas and basic support areas, focus on breakthroughs, achieve mutual empowerment and overall linkage, and promote the overall functions and comprehensive effectiveness of the "Five Centers". It is necessary to further promote the virtuous cycle of science and technology, industry, and finance, give full play to the positive role of scientific and technological innovation and financial support, and promote the construction of Shanghai's modern industrial system; we must grasp the development laws of trade and shipping, continue to promote the mutual support of trade, shipping, and finance, and Promote the continuous improvement of the development scale and development level of international trade centers and international shipping centers.

The construction of the "Five Centers" is a major strategy and important mission entrusted to Shanghai by the Party Central Committee and is related to Shanghai's long-term development. Shanghai must thoroughly study and implement the spirit of General Secretary Xi Jinping's important speech during his inspection of Shanghai and the important instructions and requirements for Shanghai's work, firmly grasp major strategic opportunities, serve national strategic needs, accelerate the improvement of the level of internationalization, continue to improve urban energy levels and core competitiveness, and promote China's modernization Give full play to the leading and demonstration and leading role.

[The author Qi Yan is the Party Secretary and Director of the Development Research Center of the Shanghai City People's Government. This article is excerpted from the 2024 Issue 1 (inaugural issue) of "International Metropolitan Development Research" sponsored by the Development Research Center of the People's Government of Shanghai City. The original title is: "The Evolution Process, Practical Orientation and Future Tasks of the Construction of Shanghai's 'Five Centers'", The Paper News is authorized to publish with editing and abridgement at the time of publication]