On the afternoon of Sept. 14, the External Communications Office of the CPC Shanghai Municipal Committee and the Information Office of Shanghai Municipality held the first press conference of the Party Committee special series on the theme “forging ahead in a new journey and make contributions in a new era.” Wu Jincheng, Deputy Party Secretary and Director of the Shanghai Municipal Commission of Economy and Informatization, gave a briefing on Shanghai’s high-quality development of the industrial economy by focusing on the theme of “strengthening the leadership of high-end industries and building a new industrial system.” Zhang Yi, Deputy Party Secretary of the Shanghai Municipal Commission of Economy and Informatization, Qiu Wenjin, Member of the Party Committee and Deputy Director of the Shanghai Municipal Development and Reform Commission, Wang Ye, Member of the Party Committee and Deputy Director of the Science and Technology Commission of Shanghai Municipality, Sun Wei, Member of the Party Committee and Deputy General Manager of China State Shipbuilding Corporation, and Wu Qiang, deputy head of Pudong New Area and member of the Party Committee of the district government, attended the press conference and answered questions from reporters.General Secretary Xi Jinping has placed high hopes on Shanghai's economic development, and has made important instructions many times, requiring Shanghai to strengthen the leading function of high-end industries, strive to capture the core links of the industrial chain, and occupy the high-end position of the value chain. The Party Committee of the Shanghai Municipal Commission of Economy and Informatization and the commission itself kept in mind the General Secretary’s entrustment, unswervingly practiced Xi Jinping’s thoughts on economics, thoroughly studied and implemented the spirits of the 12th Congress of the CPC Shanghai Municipal Committee, firmly grasped that “the real economy is the lifeblood of the country”, took the high-quality development of the manufacturing industry as the top priority, made every effort to promote “Manufacturing in Shanghai” brand, accelerated the construction of a new industrial system, and created a high-end manufacturing growth driver. The city’s industrial added value has increased from 723.1 billion yuan in 2011 to 1.0739 trillion yuan in 2021, remaining No.1 nationwide. The total industrial output value has increased from 3.3834 trillion yuan to 4.2014 trillion yuan, breaking the 4 trillion-yuan mark, and elevating the overall economic strength to a new level to lay a solid material foundation for Shanghai to accelerate the construction of a socialist modern international metropolis with global influence.1. The construction of a new industrial system has opened a new chapterShanghai takes the manufacturing industry as the main ‘battlefield’ of the real economy. In 2017, the city took the lead in releasing 50 measures to bolster the real economy. Since 2018, the city has implemented two rounds of the Three-year Action Plan on “Manufacturing in Shangha” brand, and has continuously climbed up the industrial chain value chain. Amid the rapid development of emerging industries and the continuous emergence of new growth drivers, Shanghai aims to build a modern economic system by promoting the transformation and upgrading of the six pillar industries proposed in the 1990s. The city has initially built a new industry system led by three leading industries and supported by six key industrial clusters, while seeking fast growth in emerging sectors and taking a forward-looking vision to foster future-oriented industries.First, the city has been building an innovation highland for three leading industries. It actively implemented the requirements of General Secretary Xi Jinping on building world-class industrial clusters of integrated circuits, biopharmaceuticals, and artificial intelligence, enabling the three leading industries to double the scale. In 2021, the total scale of three industries amounted to 1.27 trillion yuan. In terms of integrated circuits, the city focused on full chain development plus chip-machine linkage. The advanced process capacity, core chip development abilities, key equipment and basic materials supporting capabilities have been continuously improved. The 14nm advanced process facility has achieved mass production, and breakthroughs have been made in 90nm lithography machine, 5nm etching machine, 12-inch large silicon wafers, China-developed CPUs, and 5G chips. The city’s integrated circuit industry has reached a size of 250-billion-yuan, accounting for about 25% of the country’s total. The city is home to more than 1,000 key enterprises, and has attracted 40% of the country’s talents in the integrated circuits industry. In terms of biopharmaceuticals, the city focused on “R&D in Zhangjiang” plus “Manufacturing in Shanghai” by comprehensively deploying biological products, innovative chemical drugs, modern Chinese medicine, high-end medical devices and smart medical care. The city took an innovative approach in biopharma legislation in Pudong, achieved breakthroughs in CAR-T cell therapy, PET-CT, cardiac pacemaker and other technologies and products, and held the Shanghai International Biopharma Industry Week. The scale of the city’s biopharma industry has reached 700 billion yuan, of which the manufacturing output value reached 170 billion yuan. The number of Academicians, Changjiang Scholars and other high-level talents accounts for one-fifth of the country’s total, and the number of innovative drugs accounts for one-fourth of the country’s total. In terms of artificial intelligence, the city focused on algorithm innovation plus scene empowerment by advancing the operation of major national innovation platforms. Breakthroughs have been made in key technologies such as original algorithms and smart chips, and more than 100 major demonstration application scenarios have been created. The city has released the country’s first 14th Five-Year Plan for artificial intelligence, and the local artificial intelligence standard system, while taking the lead to explore local legislation. The city’s artificial intelligence industry scale has hit 305.6 billion yuan, and the number of talents in the sector accounts for one-third of the country’s total. The city has held the World Artificial Intelligence Conference for five consecutive years, making it a wind vane that leads the industry.Second, the city has been building six key industrial clusters. Key industries such as electronic information, life and health, automobiles, high-end equipment, advanced materials, and fashion goods saw accelerated growth in output value, varieties, and impact, and achieved cluster-based development. In 2021, the total output value of the six key industries exceeded 2.87 trillion yuan. In terms of electronic information, the city promoted the development of new displays, smart sensors, and Internet of Things, improved the technical capabilities in core links and the added value of products. A number of products such as 8K ultra-high-definition chips, smart cockpits, and 5G communication modules have reached globally-leading standards. In terms of life and health, the city accelerated the development and expanded the applications of health services, drug distribution, rehabilitation aids, home service robots, and online medical care. In terms of automobiles, the city promoted the development of new energy vehicles, intelligent connected vehicles and branded vehicles with efforts to create new brands and new models in the field of smart electric vehicles. The city has built one of the country’s first fuel cell vehicle demonstration urban clusters, and accelerated expansion of charging piles, swap stations, and hydrogen refueling stations. A total of more than 670,000 new energy vehicles have been sold, and a world-class automobile industry center has been built. In terms of high-end equipment, the city has built strategic industrial chains such as civil aviation, large cruise ships, heavy-duty gas turbines, and Beidou navigation system. The city’s annual output of industrial robots ranks first in the country. It also focused on supporting Lingang to create a “global city of power.” In terms of advanced materials, the city has accelerated green transformation of chemical and steel industries, developed cutting-edge new materials, and cultivated emerging sectors such as membrane materials and fiber materials. In terms of fashion goods, the city supported the development of cosmetics, creative design and other special industries. A batch of domestic trendy products, cultural and creative boutiques, and cutting-edge brands have been launched quickly. And the first World Design Cities Conference will be held tomorrow. Third, the city has been fostering new growth areas and future-oriented industries. It has implemented the requirements of the CPC Shanghai Municipal Committee and the Shanghai Municipal Government on strengthening the layout of “new tracks” and the “terminal-driven” approach, while release action plans for green and low-carbon development, metaverse, smart terminals, and digital economy. In the next five years, the city will expand the orientation of its new industry system and foster new growth drivers. In terms of green and low-carbon development, the city focused on six trends including clean energy, low-carbon raw materials, functional materials, process efficiency, terminal electrification and resource recycling. The city also prioritized five areas including new technologies, new processes, new materials, new equipment, and new energy, while accelerating the cultivation of green enterprises, zero-carbon demonstration factories, and green industrial chains, with the industrial scale to reach 500 billion yuan in 2025. In terms of metaverse, the city adhered to value orientation of leveraging virtual sectors to bolster the real economy, and promoted the “five-in-one” layout on interconnectivity, interaction, computing, tools and ecosystem. It implemented four major actions of industrial highland construction, digital format upgrading, model integration and empowerment, and innovative ecosystem cultivation. In 2025, the industrial scale of metaverse will reach 350 billion yuan. In terms of smart terminals, the city focused on the development of intelligent connected vehicles, service robots, smart home appliances, smart wearables, and virtual displays, with an aim to create a number of intelligent terminal brands with Shanghai identities. And the industry scale will reach 700 billion yuan in 2025. At the same time, the city will build development advantages in the next 5-10 years by cultivating cutting-edge industrial clusters such as future-oriented health, future-oriented intelligence, future-oriented energy, future-oriented space, and future-oriented materials. The city will also explore frontier areas such as brain-computer interface, gene and cell therapy, intelligent computing, 6G technology, new energy storage technology, and high-performance composite materials.2. Innovation drives industrial development to build new advantagesIn the past decade, Shanghai has led high-quality development with new development concepts, by making innovation the top driving force for industrial and economic development, and building a market-oriented technological innovation system with enterprises as the main body, together with the combination of industry and academia. The city has optimized the mechanism where the government plays its role with a special task force and companies take their responsibilities in a market-based way. The city took the lead nationwide to launch and implement the industrial foundation enhancement project and industrial foundation reengineering project, and made every effort to fight the tough battle for industrial foundation enhancement and industrial chain modernization. The industrial capabilities and core competitiveness have been significantly improved.First, the key pillars of the major power have emerged. A number of major achievements have elevated “Manufacturing in Shanghai.” The C919 jumbo jet successfully made its maiden flight. The ARJ21 regional passenger aircraft started commercial operation. The first domestic large cruise ship floated in the dock. The Xuelong 2 polar icebreaker and other international leading ships were launched successively. A national test base for heavy-duty gas turbines started construction. The world’s first kilometer-level high-temperature superconducting cable was put into operation. Shanghai has also been deeply involved in major national strategies such as manned spaceflight, deep space exploration, and new-generation launch vehicles. Second, the innovation system has been continuously improved. The city has formed a network of 95 nation-level, 713 municipal-level and more than 1,600 district-level corporate technology centers. The R&D expenditure of enterprises accounts for more than 60% of the R&D expenditure of the whole society. The R&D investment intensity of industrial enterprises above designated size reached 1.65%. The city has created two national manufacturing innovation centers for integrated circuits and smart sensors, as well as 8 municipal-level manufacturing innovation centers for gas turbines, marine equipment, high-end medical equipment, and intelligent connected vehicles. The city has established the Academicians’ Achievement Exhibition and Transformation Center for the Chinese Academy of Engineering to foster accelerated industrialization of innovative achievements. In 2021, the output value of the city’s strategic emerging manufacturing industries accounted for 40.6% of the total industrial output value of enterprises above the designated size, making them the main driver for the high-quality development of the industrial economy.Third, the quality and efficiency have been continuously improved. The city’s industrial labor productivity exceeds 400,000 yuan per person, and the total industrial output value per unit of land in the industrial parks exceeds 8 billion yuan per square kilometer, ranking among the leaders nationwide. The unit land output of 53 special industrial parks in three batches reached 14.1 billion yuan per square kilometer. Over the past 10 years, the city’s total industrial energy consumption has dropped by 5.26 million tons of standard coal, the energy consumption per unit of industrial added value has declined by 42%, and carbon emissions have eased by more than 50%, marking the green and low-carbon development has been steadily advancing.Fourth, the resilience of the industrial chain has been significantly enhanced. The city continued to replenish, consolidate and enhance the industrial chain. Since the outbreak of the COVID-19 pandemic, the city has made every effort to ensure the safety and stability of the industrial chain and supply chain, focused on key areas such as automobiles and integrated circuits, and cooperated with other regions in the Yangtze River Delta to establish a cross-provincial working mechanism to ensure the stability and operation of the national industrial chain and supply chain. The city gave play to its leading role, and formed a coordinated development pattern in the Yangtze River Delta region around key areas such as intelligent robots, new energy vehicles, new power equipment, and new displays.3. Digitalization empowers industrial transformation to form new growth driversOver the past decade, Shanghai has seized the opportunity of a new round of technological revolution and industrial transformation, implemented the strategic requirements for the development of Digital China and the digital economy, promoted the development of industries empowered by digital technology in an all-round way, and activated the new growth momentum of the digital economy.First, industrial digitalization has been accelerated. The city focused on intelligent manufacturing and industrial Internet, accelerated the pace of transformation in the manufacturing industry, and adopted a “one policy for one industry” approach for digital transformation in 10 fields. The city has built 60 smart factories, 5 lighthouse factories, 2 enterprises that have been named national intelligent manufacturing role models, and 200 outstanding scenarios for intelligent manufacturing. Shanghai’s robot density is 260 units per 10,000 people, which is more than double the international average. The city has formed 26 influential industrial Internet platform, linking more than 1.2 million enterprises and 8.2 million facilities nationwide. The city has built 35,000 industrial APPs, 1.5 million data sets, and 5,500 industrial algorithms, leading 200,000 small and medium-sized enterprises onto the platform, and promoting a number of innovative applications of “5G + AI + Industrial Internet.”Second, digital industrialization has been booming. The city has vigorously developed the online new economy, and formed 30 new-generation leading Internet companies and 7 e-commerce platforms with transaction value at 100 billion each. Zhangjiang Online, Changyang Xiudai, Hongqiao Zhiyuan and other online new economy parks have attracted a number of new-generation Internet enterprise headquarters to settle down, and the software and information service industry posted total revenue of 1.3 trillion yuan. The Shanghai Data Exchange was established, with more than 100 data products listed, and it collaborates with more than 500 “digital merchants.” The city has accelerated the construction of the international data port, and released the country’s first operational guidelines and positive list for the cross-border flow of ICV data. 4. Optimization and improvement of factors stimulate new vitalityIn the past 10 years, Shanghai has given full play to the decisive role of the market in resource allocation, continuously optimized the business environment, and ensured that “good projects do not lack land, good industries do not lack space, good applications do not lack scenes, good ideas do not lack talents, good teams do not lack resources,” providing fertile ground for the high-quality development of the industrial economy.First, industrial investment continued to be expanded. The city took the lead nationwide to release an industrial map, and guided by the industrial map, it continuously optimized the overall industrial spatial layout and advanced investment promotion. In the past five years, the city has built more than 30 projects with a size of over 10 billion yuan each and more than 250 with a size of over 1 billion yuan each. The city has held the global investment promotion conference for three consecutive years, and has signed a total of 690 projects with a total investment of about 1.5 trillion yuan.Second, enterprises in different tiers have accelerated growth. Five manufacturing enterprises have become Global 500 companies. The city took actions to support top enterprises to be leaders in the industrial chain. The city built high-tech private enterprise headquarters clusters in South Hongqiao, Zhangjiang and Shibei, while luring a number of high-quality private enterprises to settle down and continuing to provide coordination services for foreign-funded enterprises. The city has deepened strategic cooperation with central state-owned enterprises, and attracted them to set up headquarters and functional units in high-end manufacturing, science and technology, and finance. CSSC and China Electric Equipment have established headquarters in the city. Small and medium-sized enterprises have accelerated the improvement of their professional capabilities. The city has cultivated a total of 26 national manufacturing champion enterprises in single sectors, 262 national “little giant” enterprises, and 4,942 municipal-level specialized and sophisticated SMEs.Third, services for enterprises have been continuously improved. Shanghai has been ranked first overall in the national assessment of the development environment for small and medium-sized enterprises for two consecutive years. The city took an innovative approach to set up the municipal enterprise service cloud platform to provide 7x24 online assistance. The city established a SME service commissioner mechanism, with 6,200 service commissioners covering 100,000 small and medium-sized enterprises. The city promoted a virtuous circle of industry, science and technology and finance, by increase financing support to enterprises, and luring the National SME Development Fund and the National Green Development Fund to settle down. The city supported innovative enterprises to be listed on the Science and Technology Innovation Board.As the wind comes from the east, one should bravely stand on the tide. The Party Committee of the Shanghai Municipal Commission of Economy and Informatization and the commission itself will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and implement the spirits of the 12th Congress of the CPC Shanghai Committee. We will continue to strengthen the leading function of high-end industries, and actively plan for new growth areas for future development. We will support the agglomeration of emerging industries, and the transformation and upgrading of traditional industries, while making every effort to promote the “Manufacturing in Shanghai” brand. We will contribute Shanghai's efforts to promoting the high-quality development of the country’s manufacturing industry in the new era, and embrace the convening of the 20th National Congress of the CPC with practical actions. #