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Economy

Shanghai aims to boost role as commerce center

By Tang Zhihao (China Daily)
Updated: 2011-07-07 14:32
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SHANGHAI - Commerce administrators in Shanghai have vowed to strengthen the city's position as an international commerce center during the 12th Five-Year Plan period (2011-2015).

The Shanghai Municipal Commission of Commerce (SMCC) estimates that the income from commerce in the city will reach 8.7 trillion yuan ($1.35 trillion) in 2015, up from 3.74 trillion yuan in 2010. The annual growth rate will exceed 18 percent.

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Sales revenue from chain stores will reach 570 billion yuan in 2015, increasing 20 percent year-on-year.

"Commerce has played an important role in boosting Shanghai's economy. It not only supports the growth of the city's gross domestic product, but also boosts the development of the property sector, the labor market and infrastructure construction," said Sha Hailin, SMCC director. SMCC data suggest that tax income from commerce accounted for 19.1 percent of taxes levied in Shanghai in 2010.

Being one of the most important economic centers in China, Shanghai has many advantages that can contribute to its success in the next five years. Among these are the development of an international financial center, the emergence of Nanhui district with the Pudong New Area and the construction of Disney Theme Park.

The city intends to give greater attention to promoting the development of e-commerce and the logistics sectors.

Sales revenue from e-commerce is expected to reach at least 850 billion yuan by 2015. About 100 billion yuan of that will come from the online retail sector, accounting for 8 percent retail sales revenue in Shanghai.

Since the 1990s, the city has been a major shopping destination. It is famous for its abundant fashion products and wide range of choices. However, Shanghai's development also has reached a bottleneck. Many time-honored brands have been forced out of business and shoppers have discovered they can find the same products in other cities and online.

"While many cities in China are accelerating their commercial development, Shanghai is gradually losing its competitive advantage," said Zhang Haisheng, deputy director of SMCC.

Experts said Shanghai may need to improve its position in wholesale businesses and change its traditional business model.

They suggest that the city must give more attention to the entire industrial chain to support its growth in the next five years.

"Shanghai has a very strong position in the retail sector, but it is weak in procuremnent, logistics, and other areas, compared with international giants such as Wal-Mart," said Zhu Lianqing, director of the Commerce Research Center of the Chinese Academy of Social Sciences.

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