Shanghai

Shanghai, a direct-administered municipality located at the southern estuary of the Yangtze River, is the most populous urban area in China, with a city proper population of around 24.87 million as of 2023. Emerging as a global powerhouse in many spheres, this vibrant city where the Huangpu River flows through its heart has solidified its place as one of the top centers for finance, business, economics, research, science, technology, manufacturing, transportation, tourism, and culture worldwide.

From a small fishing hamlet and market town to an international metropolis, the city’s development is evidence of its strategic position and adaptability. Driven by both internal and international commerce, Shanghai first became well-known in the 19th century. The First Opium War saw the city become one of five treaty ports accessible to European commerce, therefore irreversibly changing its destiny. This turning point in Shanghai’s history prepared the ground for the founding of the Shanghai International Settlement and the French Concession, hence launching the city’s globalizing process.

Shanghai had grown to be Asia’s main financial and commercial center by the 1930s. The turbulent events of the Second Sino-Japanese War, which the city saw the momentous Battle of Shanghai during, broke this time of wealth, however. Between the Kuomintang (KMT) and the Chinese Communist Party (CCP), Shanghai was caught in the crossfire of the Chinese Civil War in the next years; finally, the latter came to rule the city and much of mainland China.

Shanghai’s worldwide sway faced difficulties in the middle of the 20th century. Trade was mostly limited to socialist nations within the Eastern Bloc between the 1950s and the 1970s, which caused a drop in the city’s worldwide reputation during the Cold War. But the beginning of economic reforms started by paramount leader Deng Xiaoping in the 1980s caused Shanghai’s fortunes to turn drastically.

Particularly in the Pudong New Area’s growth, these changes sparked a fervent phase of rebuilding and rejuvenation. This rebirth enabled money and international investment to be returned, therefore enabling Shanghai to once again take front stage worldwide. Often referred to as the “showpiece” of China’s fast growing economy, the city today is evidence of the country’s economic might.

With the Shanghai Stock Exchange, the biggest stock exchange in the Asia-Pacific area by market capitalization, Shanghai’s economic importance is underlined. The first of its type in mainland China, the Shanghai Free-commerce Zone strengthened the city’s role as a center for foreign commerce and finance. These changes help explain Shanghai’s Globalization and World Cities Research Network designation as an Alpha+ (global first-tier) metropolis.

The scene of the city is varied and strong economically. Shanghai ranks fourth on the Global Financial Centres Index and has 13 firms included on the Fortune Global 500 as of 2024. With surrounding cities, the Greater Shanghai metropolitan region was projected to generate a gross metropolitan product of around 13 trillion RMB (about $1.9 trillion) in 2022, therefore underscoring its significant economic production.

About half of Shanghai’s GDP comes from its six biggest sectors: retail, banking, IT, real estate, machine manufacturing, and automobile manufacture. With Shanghai’s GDP reaching CN¥4.72 trillion ($663.87 billion in nominal terms), it makes 3.54% of China’s whole GDP. The GDP per capita of the city, which came at CN¥189,828 (US$26,187 in nominal terms) in the same year, also reflects its economic might.

The financial situation of Shanghai’s people clearly shows her city’s wealth. While the average annual wage for individuals working in urban areas was CN¥213,476 (US$31,589), the average annual disposable income per capita in Shanghai was CN¥79,610 (US$11,836). According to a 2023 Economist Intelligence Unit analysis, these numbers place Shanghai as one of the richest cities in China, yet it is also acknowledged as the most costly city in mainland China for living.

The biennial China International Import Expo (CIIE) Shanghai hosts since 2018 perfectly reflects its worldwide perspective. The first import-themed national-level expo in the world, this one emphasizes the city’s dedication to global commerce and collaboration.

Shanghai’s economy is significantly influenced by tourism. Over years, the city’s attraction to both local and foreign guests has steadily increased. With an additional value of CN¥177.12 billion (US$24.53 billion), Shanghai’s tourist sector produced in 2023 a stunning 98.5% rise over the year before. At 3.64 million visitors overall, the city received a 4.8-fold increase over 2022. Especially, there were 2.41 million overseas visitors, a 5.2-fold increase from last year.

Shanghai’s appeal goes beyond just its financial success. Renowned for its varied architectural scene, the city has Art Deco and shikumen designs. Viewed from the historic Bund, iconic buildings like the Oriental Pearl Tower add to Shanghai’s unique skyline. Viewers of cultural sites such the China Pavilion, Yu Garden, and City God Temple get peeks into the rich history of the city.

The city’s worldwide research and development center clearly shows its dedication to education and knowledge. Double First-Class Universities like Fudan University and Shanghai Jiaotong University abound in Shanghai among other esteemed educational institutions. These establishments support creativity in many spheres and contribute to the intellectual life of the city.

Shanghai’s infrastructure is changing to satisfy its expanding business and population. Beginning operations in 1993, the Shanghai Metro has expanded to rank among the biggest metro systems worldwide based on route length, therefore enabling effective transit throughout the vast metropolitan area.