Little development took place in the city during the 20th century as China made a rocky transition to a new political and social regime. When the country reopened its doors to foreign participation in the late 1970s, Shanghai finally embarked upon a period of extended growth that continues today. Recent landmarks include establishing China’s first stock exchange in 1990, constructing China’s tallest building - the 88-story Jin Mao Tower - in 1998, winning the bid for the 2010 World Expo in 2002, and opening the new Yangshan Deepwater Port in 2005.
After 14 consecutive years of double-digit annual GDP growth starting from 1992, which placed the city in the international spotlight, Shanghai stands at the crossroads of becoming a major center for the finance and service industries, in addition to manufacturing. Manufacturing still accounts for roughly half of Shanghai’s total GDP, but according to figures quoted in China’s revised economic census, services made up a record 50.8 percent of total municipal GDP in 2004. This breakthrough was accompanied by rising foreign direct investment (FDI) in ser vices and falling FDI in manufacturing, in part a result of municipal policy to emphasize service industry growth and China’s push to meet its WTO-commitments to open several key service industries to foreign participation, including banking and insurance. In 2005, more than half (53.5 percent) of total service industry investment in Shanghai came from foreign investment.
The city’s real estate sector in particular grew to new heights over recent years. About 20 percent of China’s total real estate industry value came from Shanghai, which saw 1 million housing star ts in 2004 even though prices had soared to twice the 2001 level. Moves by the central government in 2005 — including taxes and other charges on real estate transactions— have helped to cool down the sector. The city’s real estate is only expected to grow by 20 percent in 2006, compared to 30 percent in 2005. Shanghai is also consolidating its natural role as China’s main transpor tation hub.
The city’s Waigaoqiao Port facility surpassed Singapore to become the largest in the world in 2005 in
terms of annual throughput, which rose year on year by 16.7 percent to 443 million tons. Also at the end of 2005, Phase I of Shanghai’s Yangshan Deepwater Port opened in Hangzhou Bay, giving Shanghai a further push to the forefront of worldwide shipping.
— Sources: National Bureau of Statistics, state media