Zhu Xiaomin, deputy general secretary of Shanghai Municipal government, said Shanghai will establish strategic cooperative relations with multinationals and encourage them to set up transnational centers and regional headquarters in Shanghai in a bid to make the city an international commercial center.

The official said the target as the key to achieve the goal of turning Shanghai into an international trade and shipping center by 2010.

Zhu, also director of Foreign Economic and Trade Commission of the Shanghai Municipal government, explained Shanghai has a solid industrial foundation, sound infrastructure and business environment for achieving the target.

Shanghai has almost turned its industrial mix of traditional industries into high-tech ones and service-oriented, he said.

"The output value of high-tech industries in Shanghai has accounted for 20.6 percent of the city's overall industrial output value, and it's growing fast."

Booming industries, such as the IT industry with high added value, deep-processing textile industry and consumer goods industry with novel design are clustered on the Yangtze River delta surrounding Shanghai, the country's manufacturing and financial center, he said.

The port of Shanghai ranks third in the world in terms of the volume of goods it handles annually, and the value of the goods to and from the port totaled US$109.3 billion in 2000, or about 23 percent of the country's total foreign trade.

Shanghai is implementing a deep-water harbor development plan to improve the handling capacity of the port.

The city has also started programs to improve the efficiency of local customs and logistical support as part of its efforts to make the city a competitive procurement center.

Zhu said the municipal government is considering policies and measures that will offer procurement centers of multinationals better and faster service when dealing with customs, foreign currency and taxation institutions.

(People's Daily December 21, 2001)