Pudong a national benchmark for opening-up and development
Print Edition
In 1987, 30-year-old Zhou Hanmin, a newly minted postgraduate in International Economic Law, joined a six-member think-tank team under the direct leadership of the Shanghai government. Their mission was to offer detailed proposals for crafting an ambitious development plan for Pudong, then a vast expanse of farmland on the east bank of Huangpu River.
Over the subsequent decades, Zhou evolved into one of the key participants and drivers behind Pudong’s opening-up and development, serving as a living witness to its historic milestones.
On April 18, 1990, China officially announced the development and opening-up of Pudong. A decade later, in 2000, Zhou was appointed vice director of the Pudong New Area.
Reflecting on Pudong’s early days, Zhou – now a member of the Standing Committee of the CPPCC and president of the Shanghai Public Diplomacy Association – recalled the stark contrast between Pudong and Puxi (the west bank of Huangpu River).
The popular saying then was that people “preferred a bed in Puxi to a house in Pudong.”
“It required extensive infrastructure upgrades to entice people to cross the river,” Zhou noted.
But more than just physical connections like the bridges crossing the river, he emphasized, the area needed a far-reaching vision to become a development powerhouse.
Pioneering the ‘points-to-area’ reform model
Lujiazui, Jinqiao, Zhangjiang and Waigaoqiao were selected as Pudong’s pilot key areas. Each had distinct functions, yet shared a common goal: to spearhead reform and catalyze development across the entire region.
“China’s reform is characterized by driving overall progress through focused efforts at key points, then linking those points to form an integrated whole,” Zhou said.
In the early 1980s, China established four special economic zones in the southern cities of Shenzhen, Zhuhai and Shantou in Guangdong Province and Xiamen in Fujian Province and announced 14 coastal open cities in 1984. These initiatives were all aimed at using specific points to drive the development of the broader regions, he said.
The same strategy proved successful in Pudong as it was the first New Area in the country. In 2005, Pudong became China’s first comprehensive supporting reform pilot area. In 2013, the China (Shanghai) Pilot Free Trade Zone was established there. And in 2020, Pudong was tasked with building itself into a pioneer area for socialist modernization, further propelling high-level reform and opening-up.
“All these leaps and initiatives align with Pudong’s original ethos: daring to experiment, break new ground, and reform boldly,” Zhou said.
Setting the national standard
Pudong has become a national benchmark for opening-up and development, with its successful models replicated across China.
For instance, since the first FTZ launched in Pudong in 2013, 21 more have been established nationwide. Similarly, after Pudong introduced China’s first FTZ foreign investment “negative list,” the concept spread nationally, with the list repeatedly shortened – from 190 items in 2013 to just 27 today within all FTZs around the country with virtually no restrictions in manufacturing and opening various service sectors for foreign investment.
Last year, a master plan was unveiled for the Shanghai Eastern Hub International Business Cooperation Zone, an 880,000-square-meter area adjacent to Pudong International Airport. Beyond boosting the flow of goods, funds and commodities, a key feature is facilitating personnel entry and exit. The planned visa-free access for foreigners aims to streamline business activities such as meetings, negotiations and exhibitions.
Pudong has also made significant strides in urban governance, implementing reforms like the separation of business licenses from operation permits and the “one-stop online service” platform.
New horizons
The international cross-border digital economy is entering the fast lane.
Over the past decade, the proportion of the digital economy in GDP has risen from 20.9 percent to 40 percent. It is projected that the scale of China’s digital economy will surpass 60 trillion yuan (US$8.2 trillion) this year.
Consequently, there is an urgent need for institutional openness, Zhou said.
Pudong has been at the forefront in aligning with international high-standard economic and trade rules, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA).
In the Lingang Special Area, efforts to facilitate data flow and promote global cooperation are in full swing.
At present, within the 1,210 square kilometers of the Pudong New Area, there are around 121 square kilometers of the Shanghai FTZ, as well as 120 square kilometers of the Lingang Special Area.
This “zone within a zone” model holds great significance for institutional innovation and alignment with international rules. Innovation now is not limited to scientific and technological innovations, but also requires breakthroughs in institutional innovation.
“The goal is to make Shanghai more open,” Zhou observed.
While Pudong’s physical infrastructure is largely in place, Zhou stressed the need to further optimize soft factors like the business environment.
With around 75,000 foreign-funded enterprises in Shanghai – many concentrated in Pudong – the future, he believed, hinges on “promoting legislation in key areas and establishing a comprehensive legal framework aligned with international norms.”
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