The year of 2015 is not only the concluding year of the 12th Five-year Plan, but also key to Shanghai´s essential stage of development and transformation. Facing dual challenges of tightening external environment and enhanced internal constraints, the industrial sector in Shanghai accomplished positive progress by focusing on innovation-driven development and economic transformation and upgrade. It broke through the bottleneck in transformation,reshaped its competitive advantages, changed its growth drivers and optimized its economic structure. Therefore, oriented by quality and profitability, it accelerated the structural reform at the supply side, stabilized the growth rate, fine-tuned the structure and drove the transitions.
Throughout the year, the industrial sector in Shanghai showed the transition trend from slowdown to stability and positive growth. In 2005, the growth of the entire sector was RMB711 billion, 0.5% above the previous year, completed by the increase of 0.2% in the output growth of leading industrial enterprises. It realized the annual profit of RMB265.1 billion, with its industrial margin (7.9%) and profit tax rate (14.0%) which are 2.1% and 3.7% higher than the national average and also higher than most provinces in East China. Meanwhile, the export of high-end products roared, and computer, communications and other electronic equipment manufacturing sectors represented the largest share in export delivery value. Driven by the centralized production of Pegatron Corporation ready for the launch of iPhone 6s, the figure went up 0.6% compared to last year. Moreover, the export delivery of the healthcare industry inflated 10.6% thanks to the expansion of premium medicine market.
The trend during the 12th Five-year Plan further highlighted the feature of structured deceleration in Shanghai´s industrial transformation. Historically, when a developed economy entered the early stage of high income dominated by service economy, it often showed the trend of structured deceleration, including decline in growth and weight of industrial sector as well as slowdown of economic growth. Since the 12th Five-year Plan, Shanghai has demonstrated such trend in terms of its industrial growth, weight of industrial sector in its GDP and change in its GDP growth. Concerning industrial growth, the industrial sector in Shanghai underwent 8 years of two-digit growth rate from 2000 to 2007, at the average rate of 12.9%. Meanwhile, its GDP also maintained the rapid rise around 10%. After the financial crisis in 2008, Shanghai´s industrial sector took the lead to enter the new stage of transformation in China, accompanied by visible slowdown of growth. The average growth rate between 2008 and 2015 was 6.0%, and was only 0.5% in 2015, representing the lowest figure since opening and reform. Accordingly, the overall GDP in Shanghai also changed from high growth to medium-high growth. As to the change in the percentage of industrial sector, in 1997, the share of Shanghai´s service sector exceeded the industrial sector for the first time. In recent 10 years, the percentage witnessed an ongoing decline of 1.5% year by year on average. In 2015, it was only 28.5%, below 30%, at its historical valley, showing the drop of 2.8%, also the largest since the 12th Five-year Plan. However, these changes in growth and weight are consistent with the rules of structured deceleration in an industrialization evolution, that is, the decline of industrial growth leads to its lighter weight, and the rise of service sector is coincident with the slowdown of economic growth.
Reviewing the progress in industrial transformation and upgrade, since the 12thFive-year Plan, in particular in 2015, Shanghai´s industrial sector accurately captured the new directions of industry developments both in China and across the world, including "Industrial 4.0" and "Made in China 2025". Based on Shanghai´s industry strength, to meet the goal of turning Shanghai into an international center of technology and innovation, it heavily invested in new technologies, industries, businesses and models (hereinafter referred to as "Four New" economy), accelerated the creation of innovation-driven development, and focused on high-end, intelligence, service-based, centralized and eco-friendly expansion. The industrial sector continued to enhance its supporting role in Shanghai´s transformation and further highlighted its leadership and demonstration effect. First of all, led by "Four New" economy, it accomplished new innovation-driven progress. 3D printing, robotics and other new technologies became the hotspots of the society. New industries, including Connected Vehicles, BeiDou Navigation and smart lighting, began to take shape. Fourteen new business models of "Internet + traditional services" featured accelerated convergence, such as Internet education and Internet finance. New patterns of O2O (online and offline integration), online ordering and store pickup, warehouse behind store and customization kept on emerging. When actively driving the first "Four New" pilot zone in China, Shanghai Textile Holdings, Shanghai Electric and other major SOEs and industrial parks regarded "Four New" economy as the key opportunity to lead the next round of rapid growth. The "4-in-1" model showed new advancements and fostered the construction of innovation supporting system. Second, motivated by major projects, the high-end development entered the new stage. Shanghai published the "Implementation Opinions on Accelerating Smart Manufacturing and Constructing A Global Technology & Innovation Center in Shanghai", followed the State Council´s "Outline for Promoting the Development of the National Integrated Circuit Industry", formed Shanghai Integrated Circuit Industry Development Steering Group and finalized the scheme of IC development investment fund. Three projects were listed in the Ministry of Industry and Information Technology´s Smart Manufacturing Pilot Program in 2015, including Intelligent Connected Vehicle by Shanghai International Automobile City. In addition, 9 projects won the Ministry of Industry and Information Technology´s Smart Manufacturing Dedicated Grants, including Smart Manufacturing Industrial Cloud and Big Data Standard Testing & Verification. C9191 large-size passenger aircraft, Shanghai Tianma AMOLED 5.5 and other key projects achieved breakthroughs. Focusing on steel, equipment manufacturing, automotive and other essential industries, it implemented the informatization renovation of traditional sectors, supported traditional enterprises to innovate in new technologies and models, and engaged in the construction of public industry service platform and IT system integration and applications. Third, through in-depth integration of industrialization and informatization, it also accomplished new breakthroughs in intelligence development. When actively driving innovations in industrial Internet, industrial big data and smart manufacturing, as one of 16 "Industrial Cloud" pilot provinces and municipalities, Shanghai supported and discovered a number of key "Industrial Cloud" initiatives, launched the "Industrial Cloud" service pilot platform, and actively explored industrial e-commerce. In the directions of "Smart Production", "Synergic Management", "Platform Services", "Individualized Customization" and "Big Data Application Security", it supported and guided a series of key demo initiatives focusing on Industrial Big Data, and reinforced some in-depth applications, including digital and coordinated R&D platform, smart manufacturing execution system, industrial robots and automated logistics system. Moreover, Shanghai also actively developed new technologies, models and applications, ranging from crowdsourcing and mass entrepreneurship to crowdfunding and O2O marketing. Fourth, concentrating on service-oriented manufacturing, it further upgraded its service-oriented development. In 2015, the revenue of all producer service sector in Shanghai reached RMB2 trillion in key areas, 15% above that in 2014. Among them, general integration, general contractor, R&D services, and supply chain management services boasted rapid inflation. Shanghai Electric (Group) Co., Ltd., Shanghai Nuclear Engineering Research and Design Institute, SNPEC and other organizations heightened their level of R&D and technical services, while ambitiously expanding the domain of service-oriented manufacturing. Shanghai published the "Guiding Opinions on Promoting the Development of Productive Service Industry Functional Zones in Shanghai", which adhered to the principles of "Three Regulations in One, Combination of Construction and Management", and accelerated the development of Productive Service Industry carriers. Fifth, Shanghai aimed to upgrade its industry parks and accomplish new leaps through centralized development. To promote the construction of new national industrialization demo sites, Jiading Industrial Park and Qingpu District successfully created the 6th batch of "National New Industrialization Demo Sites". Thus far, 15 demo sites in 6 batches have been approved and licensed by the Ministry of Industry and Information Technology. The first batch of 50 "Four New" economy innovation pilots in Shanghai were certified. Shanghai also introduced the first "Guidelines of Industry Park Startup Service System Construction" in China, aiming to create new vehicles for "mass entrepreneurship space". Devoting to the development model of "Inter-park Partnership & Brand Alliance", it encouraged branded and sound park developers in China and across the world to expand their operations in Shanghai. And sixth, Shanghai actively drove the adjustment of industry structure and demonstrated the new results of green development. It changed the passive adjustment of terminal government to the active and strategic action. Shanghai structured the Green Industry Park Rating System, offered the supports of public service platforms and fostered green development. Meanwhile, the efforts of urban-rural integration, industrial area transformation and upgrade, 198 land reduction, country park construction, ecological environment government and downtown innovation centers effectively promoted the structured adjustment of key areas. Shanghai also accelerated the development of energy-efficiency and environmental protection businesses, with the overall output of RMB84.37 billion in 2015, which accomplished the industry development objectives in the 12th Five-year Plan ahead of schedule, further revealing the general trend of steady and positive growth and rapid evolution of service sector.
