Guest: Yu Yong
Interview Background
How to make Jing’an’s export-oriented economy be resistant to the double whammy of the increasingly complex international situation and the resurgence of COVID-19? Shanghai is positioned as a central node of the domestic economic cycle and a strategic link for interplay between domestic and international economic flows. The development of the headquarters economy is given greater prominence. How does Jing’an lead the development of Shanghai’s headquarters economy? Let’s look at the answers from Yu Yong, Secretary of the CPC Jing’an District Committee.
Host:
Why is the slogan “gather in Jing’an, extend business around China through Shanghai and serve as a bridge connecting the world” often used when promoting Jing’an?
Yu Yong:
The CPC General Secretary Xi Jinping requested to strengthen Shanghai’s four roles, one of which is a hub and gateway of opening up. Shanghai has long been a gateway, but to serve as both hub and gateway requires more functions, while the key lies in pooling and allocating global resources, thus participating in and influencing the world. As one of the districts with the highest degree of opening up in Shanghai, Jing’an has advantages and responsibilities to play its demonstrating and driving role in creating a world-class business environment and building a preferred destination to attract more high-quality foreign investment. Over the years, the total foreign tax of Jing’an District has accounted for more than 50% of the district’s total. Despite the outbreak crisis and unprecedented economic pressure since this year, the whole district has pulled together to enable the growth of the foreign investment. In the first seven months of this year, the actual use of foreign investment in Jing’an was RMB 698 million, up 48.19% year on year, and the foreign tax totaled RMB 30.39 billion. Jing’an ranks first among Shanghai’s central urban areas in terms of total foreign tax and proportion of foreign tax.
Yu Yong:
The bustling West Nanjing Road brimming with international elements exactly mirrors Jing’an’s efforts on opening up. International brands gather here, and businesses flock to high-rent commercial buildings. At present, more than 2,000 Chinese and international brands run a business on West Nanjing Road, and 70% of them are internationally famous. More than 90% of global luxury brands, including the top three, can be found here. It can be said that West Nanjing Road is the preference for international brands to access the Chinese market. Besides, it witnesses the most intensive departure tax refund consumption three-quarters of which across Shanghai takes place in Jing’an, mostly on West Nanjing Road.
Host:
How to make Jing’an’s export-oriented economy be resistant to the double whammy of the increasingly complex international situation and the resurgence of COVID-19?
Yu Yong:
Against the backdrop, international investment still flows and goes to more attractive places. We have been seeking new growth points and breakthroughs to create a strong magnet for worldwide quality resources. The business environment is the most important for foreign investment. We have made great efforts to improve liberalization and facilitation of investment and trade, providing considerate services. We have signed a Memorandum of Cooperation with Shanghai Customs District P.R.China to establish a customs clearance facilitation mechanism focusing on Jing’an’s open economy, key industries, innovation business, and enterprise credit cultivation. We will seize opportunities presented by RCEP to help enterprises solve problems in the cross-border flow of goods, financing and talents. We have made active efforts to foster the “Global New Products Release Demonstration Zone” and attract international brands to open their first stores and unveil their new products in Jing’an. Since this year, 42 brands have been introduced to open their first stores in Jing’an, and the world’s top three luxury groups have also taken action in this regard. In the first seven months of this year, the contribution of Jing’an’s business and trade service industry to the regional economy increased to 40%, in which foreign investment made a very important contribution.
Host:
Shanghai is positioned as a central node of the domestic economic cycle and a strategic link for interplay between domestic and international economic flows. The development of the headquarters economy is given greater prominence. How does Jing’an lead the development of Shanghai’s headquarters economy?
Yu Yong:
Jing’an plays a pioneering and gathering role in Shanghai’s headquarters economy. Only when the energy level of the headquarters economy is high enough with strong enough influence can it occupy a more important position in the industrial chain, thus serving, affecting, and driving the overall development. Therefore, Shanghai has been focusing on attracting and cultivating headquarters with a high energy level. In 2021, Plaza 66 on West Nanjing Road became the first building with tax revenue reaching RMB 10 billion in Shanghai’s central urban area. It is the headquarters with a high energy level that supports its achievement. Plaza 66 is a super global headquarters base and houses world-class enterprises such as the world’s top luxury group LVMH, one of the world’s top four accounting firms KPMG, one of the world’s top five real estate consulting firms Cushman & Wakefield, and more than 100 internationally renowned brands, such as LV, Hermes, and Dior.
Yu Yong:
In recent years, Jing’an has implemented policies including the Global Service Provider Program, Headquarters Economy Enhancement Program, Asia-Pacific Operation Headquarters Support Program, and Foreign Investment Promotion Partnership Program, fostering a group of quality enterprises capable of gathering and allocating Asia-Pacific and global resources in trade, investment, supply chains, and R&D. At present, 144 headquarters of different types are settled in Jing’an, including 110 regional headquarters of multinational companies (including 35 high-level headquarters in Greater China and above), 22 headquarters of private enterprises, and 12 headquarters of trade enterprises. The number and growth rate of headquarters and contribution per headquarters of multinational companies in the region are among the highest in Shanghai.
Host:
In November 2015, a new Jing’an District was established upon the “Merger of Two Districts” (the original Jing’an District and Zhabei District). With greater space, how will Jing’an leverage the leading role of the headquarters economy to enhance the regional economic function and density?
Yu Yong:
West Nanjing Road features high tax revenue and high economic density, but Jing’an cannot rely solely on it. After the establishment of the new Jing’an District, we promoted the development strategy of “One Axis, Three Belts”, focusing on the development of four core functional areas, namely the West Nanjing Road, Suzhou Creek, Daning, and Shibei. We will continue to improve industrial layout and district functions to enable multi-location booming development and let Jing’an embrace a promising future.
Yu Yong:
Suzhou Creek Functional Area is under the spillover effect and influence of West Nanjing Road, featuring the headquarters economy and highlighting the development of business and trade services, financial services, sci-tech innovation, and professional services. Daning Functional Area advocates development driven by sci-tech innovation and cultural innovation, promotes the integrated development of e-sports, film and television, healthcare, and business, actively cultivates strategic emerging industries, and creates a pioneer in gathering innovative and creative industries. Shibei Functional Area is one of the first digital transformation demonstration areas in Shanghai, gathering more than 500 digital intelligent innovation enterprises, including core big data enterprises that account for one-third of the city’s total. The next step is to connect and serve the construction of Shanghai as an international digital city and advance the extensive integration and innovative development of data intelligence technology.
Host:
Jing’an proposed to build new benchmarks in Shanghai’s central urban area. In addition to making the export-oriented economy and headquarters economy flourish, what other efforts will be conducted toward benchmarks?
Yu Yong:
In 2020, Jing’an completed the renovation of designated old residential housing below Grade II, which allowed the release of a large amount of land through renovation projects. Many involved historical buildings and characteristic streets are valuable resources of Jing’an. Upholding the principle of “preservation first, culture as the soul, and care for people”, we will upgrade the city and provide new sources of business vitality. This is one of the aspects that we want to set good examples of.
Yu Yong:
The upgrading of Zhang Garden is an example. Established in 1882, Zhang Garden is reputed as the “No.1 Garden on the Sea” and features a group of shikumen-style buildings. We adopted the protective expropriation method of “requisition instead of demolition and residents’ removal but buildings’ retention”, which will be completed in November 2020. According to the requirements of the CPC Shanghai Municipal Committee on building benchmarks for urban conservation areas and urban upgrading, we preserve and utilize Zhang Garden in four zones: west, east, north, and south in an orderly manner. At the end of September this year, the upgraded Zhang Garden West Zone opened first. With the theme of Shanghai-style culture, Zhang Garden is endowed with brand-new commercial functions and business formats through experience- and leading-style fashion consumption. In the east zone, boutique hotels, apartments, and creative offices will be built. In the north zone, culture centers and art museums will be built. In the south zone, fashion centers and performance centers will be constructed, and a subway underground transfer channel will be available, so that urban culture and history can be better integrated with the upgraded public space. The whole project is expected to be completed and put into operation by the end of 2026.
Yu Yong:
In addition to Zhang Garden, the central urban area carries Shanghai’s charm and essence and intensively mirrors Shanghai’s comprehensive advantages. The space resources in the central urban area are particularly valuable, so the “golden land” should generate “golden value”. In the process of urban renewal, we will also consider preservation and development, attempting to improve benefits and invigorating regional development.
Host:
High-quality urban construction is inseparable from first-class social governance.
Yu Yong:
Jing’an has a wealth of digital application scenarios and has the largest number of core big data enterprises across the city. Based on regional advantages and industrial characteristics, we have made extensive efforts to promote the digital transformation of urban governance in recent years. Aimed at hot issues related to people’s well-being and management difficulties, we have a number of application scenarios with demonstration significance and explored new systems and models of social governance. For example, the clean and orderly West Nanjing Road represents the highest fine management standards of Jing’an, while the secret of its management is an intelligent management system that can effectively predict, identify, and solve problems around the clock. In the Linfen Road Sub-district dominated by residential communities, the intelligent digital platform can provide precise “portraits” for residents and personalized services for them.
Yu Yong:
Jing’an has taken the lead in promoting the installation of elevators in Shanghai and has enabled the improvement from “individual cases” to “mass production” in recent years. For five consecutive years, Jing’an has ranked first in the comprehensive management satisfaction evaluation of residential communities and the public satisfaction evaluation of property management. The 20th CPC National Congress is about to be held. Forging ahead toward a new journey, Jing’an will set a good example in practicing new thoughts and high-quality development, grow into a leader in demonstrating soft power and a demonstration region in urban construction, and strive to be an internationally influential iconic region in the modern socialist international metropolis Shanghai.
Host:
That’s all for today’s interview. Thank you, Secretary Yu. See you next time.