Allocation of market elements key to Shanghai's future

Efforts should be made to facilitate the efficient flow and allocation of various market elements in Shanghai so that the city can lead China's reform and opening-up with a deeper integration into economic globalization, said Shanghai's policymakers in a proposal for the city's 14th Five-Year Plan (2021-25) and its development goal for 2035 on Thursday.

Pudong New Area should play a leading role in the deepened reform and opening-up, according to the proposal. A world-class industrial cluster for integrated circuits, biomedicine and artificial intelligence should be formed to turn Pudong into an innovation highland. The China (Shanghai) Pilot Free Trade Zone, which is located in Pudong, can help advance high-level, systematic opening-up.

The proposal also states that efforts should be made to stimulate the vitality of various market entities and State-owned capital should be directed to key industries and areas. Mixed ownership and long-term incentives should be explored within the State-owned enterprises. Barriers holding up the development of private enterprises should be removed. The investment system should be perfected to protect the legal rights of foreign investors to make Shanghai the optimal choice of foreign investment.

A legal and international business environment should be built while optimizing Shanghai's comprehensive service environment. The ultimate goal is to build a city with the most convenient investment system, the highest administrative efficiency, the most regulated service management and a complete legal system.

Goods trade and service trade should be equally weighted. Regional headquarters and functional institutions of world-leading multinational companies should be further drawn to Shanghai. Support will be provided to foreign-invested companies to set up their research and development centers in Shanghai. Breakthroughs should be made regarding the flow of investment, trade, capital and new businesses, according to the proposal.