Original Title: Notice from the People’s Government of Xuhui District, Shanghai, on Issuing the “Implementation Opinions on Promoting High-Quality Industrial Development in Xuhui District by Guiding with the ‘Five-Type Economy’”
Guided by the "Five-Type Economy"
to Promote High-Quality Industrial Development in Xuhui District
To fully, accurately, and comprehensively implement the new development philosophy; to thoroughly carry out the municipal Party committee and municipal government’s arrangements regarding the development of the “Five-Type Economy”; to cultivate new advantages for Xuhui’s economic development; to forge a new pattern for the district’s industrial and economic development; to strengthen the “Four Major Functions”; and to enhance the district’s capabilities and core competitiveness, the following opinions are hereby put forward to promote the high-quality development of Xuhui’s industries.
I. General Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of General Secretary Xi Jinping’s important speeches during his inspection of Shanghai and his key directives on Shanghai’s work. We will focus on deepening supply-side structural reform, actively integrate into the new development paradigm, and, guided by the principle of “Building a New Xuhui and Reinventing Xuhui,” comprehensively enhance the level and quality of Xuhui’s industrial development.
1. Uphold innovation-led development and integrated growth. Align with the trends of the technological revolution and industrial transformation, seize the opportunity presented by the return of science and technology to urban centers, vigorously implement the innovation-driven development strategy, activate the endowment of science and technology innovation resources, amplify Xuhui’s exemplary and leading role in innovation, shape an integrated innovation ecosystem, establish the “Science and Technology Innovation Embroidery Belt” brand, and build a demonstration zone for the integrated development of the “Five-Type Economy” and key industries as well as a benchmark area for the digital economy, thereby promoting the improvement of industrial quality and efficiency.
2. Prioritize efficiency and pursue high-end development. Balance industrial contribution and visibility, target high-quality enterprises in key segments of industrial and value chains as well as in priority sectors with competitive advantages, intensify efforts to attract and nurture such enterprises, elevate industrial standards, and build strong industrial brands. This will achieve new developments in high-end industries and enhance Xuhui’s industrial competitiveness and influence.
3. Prioritize ecosystem building and cluster development. Optimize industrial spatial layout and improve the quality of industrial facilities to strengthen new industrial spaces; focus on key sectors where Xuhui possesses the greatest competitive advantages, regional characteristics, and development potential; strive to optimize the business environment; increase the supply of industrial policies; and actively promote integrated development across the upstream, midstream, and downstream segments of industrial chains, as well as among large, medium, and small enterprises.
4. Adhere to market orientation and open development. Fully leverage the decisive role of the market in resource allocation, actively utilize the government’s guiding role, improve mechanisms to promote the development of innovative industries, facilitate the rational flow and efficient aggregation of resources and factors, deeply engage in international and domestic industrial division of labor, and strive to build a hub for development and innovation.
II. Development Goals
Guided by the goal of high-quality development and with a primary focus on increasing economic density and upgrading industrial capabilities, we will concentrate on aggregating global resources and factors, cultivating innovation and entrepreneurship entities, and optimizing the industrial development ecosystem. We will accelerate the construction of a “5+4+X” industrial layout, strengthen and optimize the “Five-Type Economy,” and make every effort to build four strategic industrial clusters each worth 100 billion yuan, exploring a development path characterized by innovation-led growth, cluster support, quality enhancement and capacity building, and radiating influence.
— Industrial capacity reaches new heights.We will drive the continuous expansion of industrial scale and the continuous improvement of industrial capabilities, accelerating the growth and transformation of modern services, the four major strategic industries, modern commerce, and the headquarters economy. During the 14th Five-Year Plan period, annual revenue from modern services will grow by an average of over 8%, with more than 50 new regional headquarters of multinational corporations established and over 30 new listed or listed-on-exchange enterprises added. We will form four major 100-billion-yuan industrial clusters in artificial intelligence, life sciences and health, cultural creativity, and modern finance.
——A new industrial structure has taken shape. Fully leveraging the guiding role of the “Five-Type Economy” and the enabling power of the digital economy, we will accelerate the construction of a “Five-Type Economy” ecosystem characterized by a service-oriented economy, a high-energy innovation core, a high concentration of corporate headquarters, high-frequency traffic convergence, and deep integration into the global economy. By 2025, a modern industrial structure will be basically established, featuring modern services as the mainstay, strategic emerging industries as the driving force, modern commerce as a key strength, and digital empowerment as a defining characteristic.
— Achieve new breakthroughs in industrial innovation.Focusing on the cutting edge of global science and technology and the demands of major national strategic tasks, we will leverage the supporting and leading role of major scientific and technological innovations, promote the clustering of high-level research institutions and key laboratories, and accelerate the commercialization of scientific and technological achievements. By 2025, total R&D expenditure as a percentage of regional GDP will reach 9%, the number of high-tech enterprises will reach 1,000, the number of PCT patent applications filed by enterprises will reach 450, and the number of high-value invention patents per 10,000 people will reach 60.
——New vitality in the industrial ecosystem. Optimize the supply of industrial platforms, accelerate urban renewal in key areas, promote the rational layout and development of innovation and entrepreneurship spaces, create a convenient business service environment and a high-quality talent development ecosystem, and improve the integrated development of talent, technology, industry, and capital to form a more competitive and attractive industrial ecosystem.
III. Key Tasks
1. Focus on fostering technological innovation to drive the “efficiency gains” of the innovation-driven economy
Focusing on strategic emerging industries and leading sectors such as artificial intelligence, life sciences and health, and smart manufacturing, we will vigorously develop an innovative economy with the capacity to generate and lead innovation and the potential for exponential growth, thereby fostering the vigorous development of new industries, business models, technologies, and modes of operation.In the digital economy sector, centered on artificial intelligence, we will prioritize the development of foundational hardware such as high-end chips, smart sensors, and smart terminals; foundational software including smart terminal operating systems, AI computing systems, hyperscale industry knowledge graphs, and intelligent robot software platforms; and scenario-based applications such as smart mobility, smart commerce, smart industrial parks, smart government services, and smart communities. We will also support the research, development, and application of key foundational technologies such as brain-inspired intelligence and sixth-generation mobile communications (6G).During the 14th Five-Year Plan period, the share of the digital economy in the regional GDP will continue to rise, with the total output of the artificial intelligence industry growing at an average annual rate of 15%. In the life sciences and health sector, with a focus on biopharmaceuticals, priority will be given to the development of innovative drugs such as cell therapies and antibody drugs; medical devices including novel in vitro diagnostics, intelligent medical imaging, and high-end medical equipment; as well as clinical research services, “Internet Plus” healthcare, high-end medical services, and health management. This will promote the integrated development of clinical practice, R&D, and manufacturing;We will vigorously attract a group of headquarter enterprises and innovative companies in the life sciences and health sector to enhance the clustering effect and radiating influence of the industry. During the 14th Five-Year Plan period, the total output of the life sciences and health industry is projected to grow at an average annual rate of 10%. In the field of intelligent manufacturing, we will focus on the development of new intelligent hardware manufacturing—such as smart wearable devices, smart in-vehicle devices, and smart medical and health equipment—as well as service-oriented manufacturing, including system design and process design. During the 14th Five-Year Plan period, the total industrial output value of enterprises above designated size will remain at over 50 billion yuan.In emerging industrial sectors, we will establish a metaverse industrial chain, explore the formation of a metaverse innovation alliance, and build a metaverse industrial ecosystem; promote the implementation of various application technologies and vigorously develop smart terminals such as intelligent robots and virtual reality interaction devices; actively attract high-quality enterprises in the new energy and new materials sectors, promote green retrofitting and upgrades of enterprises and industrial park buildings, and actively develop a green and low-carbon economy; accelerate the development of new terminal products directly targeting individual consumers and household names, increase support for related services, and vigorously promote the “first-to-market, first-to-store” economic model.
2. Focus on High-End Industry Leadership to Drive “Value-Added” Growth in the Service Economy
Focus on key sectors such as modern finance, information services, professional services, and R&D services to build service brands, enhance service capabilities, and integrate service models. Vigorously develop a service-oriented economy characterized by a wide reach, high added value, and brand advantages, continuously enhancing the influence and reputation of the Xuhui service brand.In the modern finance sector, led by fintech, we will attract strategic and functional projects such as financial institution headquarters and financial holding groups. We will encourage licensed institutions to establish specialized legal entities, functional business headquarters, and independent supporting service companies, and strive to attract public mutual funds, securities firms, foreign investment institutions, and licensed fintech companies to establish operations here. During the 14th Five-Year Plan period, the total output of the modern finance industry is projected to grow at an average annual rate of 10%.In the information services sector, the focus will be on developing software development, information system integration services, information technology consulting services, data processing, integrated circuit design, internet information services, and digital content services. During the 14th Five-Year Plan period, the annual average growth rate of operating revenue in the information services sector is targeted at 10%. In the professional services sector, the focus will be on developing knowledge-intensive professional services such as legal, accounting, consulting, advertising, and human resources services. During the 14th Five-Year Plan period, the annual average growth rate of operating revenue in the professional services sector is targeted at over 5%.In the field of science and technology R&D services, the focus will be on inspection and testing, intellectual property, and engineering technology and design services. During the 14th Five-Year Plan period, the annual average growth rate of operating revenue in the science and technology R&D services sector will be 10%.
3. Focus on Global Resource Allocation to Boost the “Headquarters Economy”
Vigorously develop high-level, multifunctional headquarters-based economies with global influence and establish demonstration zones for headquarters-based economies. Accelerate the clustering of high-level multinational headquarters, actively attract regional headquarters of multinational corporations, headquarters-type institutions, and headquarters of renowned international organizations, implement the “Headquarters Capability Enhancement” initiative, encourage multinational corporations to establish Asia-Pacific headquarters, global headquarters, and global R&D centers in Xuhui, support existing headquarters in upgrading their capabilities, and actively cultivate new forms of headquarters-based businesses.Guide headquarters-based enterprises to integrate operations and expand functions, promoting their evolution from single-function management roles toward multifunctional, integrated models that incorporate new forms of trade, investment decision-making, capital management, sales settlement, and global maintenance services.During the 14th Five-Year Plan period, the cumulative contracted amount of foreign direct investment (FDI) over five years will reach $5.5 billion. Efforts will focus on increasing the concentration of local headquarters enterprises, seizing opportunities presented by the nationwide restructuring and relocation of central state-owned enterprise (SOE) headquarters to attract more central SOE groups and business divisions to settle in Xuhui. We will strengthen service support for headquarters enterprises and assist them in enhancing cross-regional resource integration and coordination. We will improve the service system for local multinational companies “going global” and expand the scope of “collective overseas expansion” by local multinational companies.We will accelerate the cultivation of a new generation of headquarters-based enterprises, actively introduce private enterprise headquarters, and empower private headquarters to pursue innovative development. We will support high-growth enterprises within the district in evolving from “micro and small headquarters” into regional headquarters.
4. Focus on the Open Hub Gateway to Drive “Incremental Growth” in the Open Economy
Closely aligned with the intrinsic requirements of service sector opening-up, trade in services, digital trade, arts and media, and international exchange, we will vigorously develop an open economy that integrates into the mid-to-high end of global industrial and value chains and embodies high-level investment and trade facilitation and liberalization, accelerating the capture of new opportunities in the digital economic landscape.In the field of goods trade, we will prioritize the development of functional institutions such as regional distribution and logistics centers, procurement centers, and settlement centers. We will explore institutional innovations for the West Bund Art Bonded Warehouse to facilitate bonded exhibition and trading, as well as the import and export of artworks.In the service and digital trade sectors, we will focus on areas such as gaming and animation, performing arts, online audio-visual content, and digital reading. We will leverage the strengths of the National Cultural Export Base to enhance the international influence of Xuhui’s digital entertainment products in foreign trade. We will expand the scale of exports in knowledge-intensive services—including healthcare and education, computer and information services, business services, and intellectual property—and vigorously develop cloud-based digital trade. We will attract international digital enterprises to establish regional headquarters, R&D centers, delivery centers, and major platforms in the area.Establish and improve comprehensive intellectual property services in the digital economy sector, and strive to be designated as a National Digital Service Export Base. In the cultural and creative sector, prioritize the development of digital entertainment, art trading, high-quality performing arts, modern media dissemination, and film and television audiovisual content. Expand the brand influence of the Shanghai International Art Trading Month, encourage global premieres and domestic premieres of global masterpieces, local original performing arts content, and original works to take place in Xuhui, and strengthen cultural cooperation and trade with countries and regions along the Belt and Road.
5. Focus on Digital Transformation to Drive Growth in the Traffic-Driven Economy
Leveraging Xuhui’s solid foundation in the online new economy and its leading role in urban digital transformation, we will vigorously develop a traffic-driven economy characterized by high-frequency flow, efficient allocation, and high-value-added of resources, as well as the integration of online and offline operations. We will facilitate the flow of talent, goods, capital, data, and technology, promoting the aggregation, restructuring, and integration of various forms of traffic to unleash their potential and amplify their value.In the online new economy sector, the focus will be on developing the platform economy and online services, guiding globally influential platform-based enterprises to establish operations in Xuhui. We will encourage the provision of online services in sectors such as healthcare, cultural tourism, and elderly care and domestic services; support commercial enterprises in accelerating their digital transformation; advance the development of new retail; and promote the application of new online-offline sales models such as fresh produce e-commerce, unmanned retail, and live-streaming retail. We will optimize the shopping environment, build the Xuhui shopping brand, and contribute to the development of an international consumption hub city.Regarding digital transformation, the focus will be on the development of cloud computing and big data industries, digital technology upgrades, and the opening of application demonstration scenarios. We will improve new digital infrastructure, strengthen data governance, sharing, circulation, and open applications, build shared digital interconnection platforms, and promote integrated innovation in digital technologies, business model innovation, and service management innovation.
IV. Key Measures
1. Improve funding allocation methods and enhance the efficiency of fund utilization
Focus on attracting investment, ensure policy funding allocation, optimize the use of policy funds, and enhance the efficiency of capital investment.We will improve the multi-tiered financial support system encompassing special fiscal funds, government investment funds, bank financing, and capital markets. We will leverage the role of state-owned venture capital platforms to strengthen the integration of investment promotion and investment activities, coordination between municipal and district levels, and the linkage between investment and lending, thereby leveraging social and financial capital to support the clustering and development of regional industries. We will optimize policy implementation mechanisms, actively promote “Internet Plus Government Services,” and establish a unified, centralized working mechanism featuring “single-point publication” and “single-point acceptance.”
2. Optimize Industrial Space Supply and Improve the Performance of Industrial Land
Focus on the four main engines—Xuhui Riverside, Caode Development Zone, Xujiahui, and the Southern Huajing Center—and launch the four major campaigns in the “east, west, south, and north” to optimize the functional forms of industrial spaces and industrial parks. Improve the alignment between industrial space and industrial development needs to drive the overall coordinated and high-quality development of the urban industrial economy.Accelerate urban renewal and promote the acquisition and reserve of land in the West Bund Financial Expansion Zone, the Riverside Hinterland Extension Zone, the Southern Riverside Extension Section, the Huajing Area, the Central South District, and scattered plots. For the secondary development of idle and underutilized land, ensure coordination between spatial planning and industrial planning; proactively plan and study industrial introduction and investment promotion strategies to accelerate industrial clustering and development.
3. Uphold the leadership of scientific and technological innovation to strengthen the driving force of industrial development
Actively build an open and collaborative innovation network, establish channels for collaborative innovation among government, industry, academia, research institutions, financial institutions, intermediaries, and end-users, and streamline pathways for the commercialization of scientific and technological achievements. Promote the integration and aggregation of innovation resources, support the construction of major platforms and innovation institutions, and improve strategic cooperation mechanisms between research institutes and local governments, among districts, and between districts and enterprises. Accelerate the establishment of innovation consortia led by leading enterprises, supported by universities and research institutes, and featuring mutual collaboration among various innovation entities to enhance the effectiveness of technology transfer and commercialization.Deepen the integration of industry and education to cultivate a group of high-quality enterprises that lead reforms in this area. Explore market operation mechanisms for technological factors that leverage Xuhui’s strengths, promote the deep integration of intellectual property with industrial development, and establish demonstration centers for cultivating high-value patents in key industries. Create an industrial intellectual property operation service platform that combines online and offline channels, increase R&D support for high-quality innovative enterprises, improve the intellectual property protection system, and elevate the level of technology transfer and commercialization.
4. Strengthen Talent Resource Support and Consolidate Industrial Development Advantages
Step up efforts to attract high-caliber talent, gathering a cohort of top-tier scientists, entrepreneurs, and engineers, while prioritizing the recruitment and cultivation of professional service talent or teams that drive innovation and development. Strengthen the development of platforms for key talent to pursue their careers and start businesses, and provide targeted support to enterprises or institutions that have made outstanding contributions, possess industry-leading capabilities, demonstrate development potential, or command high market valuations.Encourage talent to innovate and start businesses, optimize talent service guarantees, and provide comprehensive support including financial assistance, housing, startup support, medical coverage, guidance on children’s schooling, and cultural and recreational activities. Explore the development of “digital talent services” to streamline administrative procedures for talent and improve service efficiency.
5. Accelerate Digital Technology Empowerment to Drive Industrial Transformation and Upgrading
Strengthen the foundation of digital technology, support the construction of generic technology and public service platforms, enhance independent R&D in digital technology, promote the transformation of information services toward a “platform + ecosystem” model, and accelerate breakthroughs in key core technologies. Optimize the digital economy ecosystem, enhance digital service capabilities, advance the development of the Internet of Things (IoT), and support the construction of digital economy infrastructure—including 5G, big data centers, and cloud computing—as well as specialized digital economy clusters.Elevate the level of the digital economy by focusing on Xuhui’s distinctive industries, urban governance, public services, and public safety. Support the development of application scenarios, actively participate in Shanghai’s “Scene Shanghai” action plan, and create 100 application scenarios with strong demonstration effects, significant driving power, broad regional reach, and high product value-added, thereby empowering the upgrading of all sectors.
6. Stimulate the vitality of market entities and enhance industrial development capabilities
Innovate and improve mechanisms for attracting and retaining businesses to form a powerful synergy in advancing business services, investment promotion, and industrial development.We will intensify tiered cultivation of small and medium-sized enterprises (SMEs), implement the High-Tech Enterprise Doubling Action Plan, and leverage the technology-based enterprise cultivation mechanism centered on “startup incubation, innovation support, and financing services.” We will encourage SMEs to develop into “specialized, distinctive, refined, and innovative” enterprises, high-tech enterprises, and “technology-driven small giants,” while deeply identifying “gazelle enterprises” and “hidden champions” in niche sectors.Strengthen the cultivation of entities within the “Five-Type Economy,” dynamically establishing and updating the “Thousand-Hundred Enterprise Database” (a database of over 1,000 “Five-Type Economy” enterprises and over 100 key benchmark enterprises within the “Five-Type Economy”). Enhance the leading and exemplary role of flagship enterprises, focus on the four major strategic industrial clusters, and strive to attract and cultivate a group of industry enterprises and functional platform institutions that possess core technologies, deeply penetrate high-end markets, and possess strong industrial driving power.
V. Special Programs
1. Innovation, Openness, and Cooperation Plan
Support eligible innovation entities in actively participating in and exploring the initiation of major international scientific programs or projects, attract top international talent to conduct major basic research collaborations, and encourage technology-based enterprises to establish overseas R&D centers. Led by the construction of national laboratories, jointly establish an open, collaborative, efficient, and multi-tiered system of major innovation platforms; encourage joint research on major scientific problems and breakthroughs in key core technologies; and improve cross-regional collaborative innovation mechanisms.
2. High-Tech Enterprise Doubling Plan
Strictly implement policies such as additional tax deductions for R&D expenses, guiding enterprises to continuously increase their R&D investment. Support high-quality innovation and entrepreneurship enterprises, as well as technology service enterprises, in listing on the STAR Market and other exchanges; establish and improve a talent pool for high-tech enterprises; and continuously expand the district’s pool of potential candidates for listing and trading on capital markets at various levels. Strengthen supporting policies such as science and technology special projects, talent recruitment, and financial support to accelerate the cultivation of a group of “unicorn,” “gazelle,” and “hidden champion” enterprises.
3. Headquarters Empowerment Plan
We will strengthen policy support and service efforts to further promote the clustering of headquarters enterprises, guide them toward high-end development in value chains, industrial chains, and innovation chains, and enhance their scale and operational capacity.For various types of functional headquarters, implement targeted measures based on the principle of “one function, one special program.” Innovate policy provisions in areas such as fund management, overseas financing, data flow, personnel entry and exit, and customs clearance. Provide tiered support based on the headquarters’ level, influence radius, and actual contributions to attract more core functions of multinational corporations’ regional headquarters to the district, enhance global resource allocation capabilities, and increase economic contributions.
4. "Five-Type Economy" Entity Cultivation Plan
We will explore the establishment of a mechanism for identifying, monitoring, and nurturing exemplary enterprises in the “Five-Type Economy.” We will select a group of benchmark enterprises that possess core technologies, deeply engage in high-end markets, and demonstrate strong industrial driving power. We aim to attract leading domestic and international “Five-Type Economy” enterprises to cluster in Xuhui, striving to achieve a city-wide leading position in the number of specialized, refined, distinctive, and innovative “Little Giant” enterprises.Leverage the leading and supporting role of large enterprises, deepen the strategic partnership program for industrial clustering, and promote integrated development across the upstream, midstream, and downstream segments of industrial chains, as well as among large, medium, and small enterprises.
5. “Five-Type Economy” Specialized Cluster Development Plan
Focus on key areas such as Xuhui Riverside, Caohejing Development Zone, and Xujiahui to conduct targeted investment promotion, creating a series of “Five-Type Economy” clusters characterized by differentiated competition and distinctive development. Benchmarking against international Grade A office buildings, we will develop a range of high-quality industrial facilities. We will tailor precise support policies—including those for talent, land, and financing—to ensure targeted implementation and tangible results, thereby creating practical “Five-Type Economy” case studies featuring distinctive scenarios.
6. Digital Scenario Convergence Plan
Support the accelerated integration of traditional industries with emerging business models, and assist small and medium-sized enterprises in exploring scenario applications to achieve digital transformation and development. Introduce digital solutions providers to expedite the establishment of a series of new benchmarks for digital scenarios that address urgent needs, build market brands, and enhance tangible user experiences. Explore the establishment of pilot zones for online new economy application scenarios, implement a “User Experience Specialist” system, and conduct “citizen experience evaluations” of application scenarios. Transform dormant application scenarios into active production resources, using digital technology to accelerate development while enhancing the warmth of service delivery.
VI. Support Mechanisms
1. Improve the industrial promotion mechanism. Under the overall coordination of industrial authorities, functional departments will fulfill their respective duties, leverage their capabilities, and work in concert. Based on a clear framework of responsibilities for promoting industrial development, they will jointly formulate industrial policies and measures, coordinate the use of industrial development funds, and collaboratively resolve major issues in industrial development. Efforts will focus on building an industrial promotion mechanism that combines an active government with an efficient market, and fully advance the clustered development of industries.
2. Innovate service and regulatory mechanisms. Continuously optimize business service mechanisms, establish specialized teams for investment promotion and enterprise services, build a one-stop service system, and enhance the attractiveness and competitiveness of investment promotion and business retention.Explore inclusive and prudent regulatory mechanisms and “sandbox” regulatory mechanisms suited to the development of new business models arising from the cross-sectoral integration of the “five-type economy.” Strengthen research into the development patterns of emerging phenomena, tailor regulatory rules and standards by category, explore expanding the scope of the list of exempted penalties, and provide market entities with room for “tolerance of errors” and “trial and error.”
3. Establish a statistical monitoring mechanism. Based on the National Economic Industry Classification Standard, optimize and improve statistical methods and indicator systems for key industries and related fields. Establish an information-sharing mechanism and optimize the system for releasing industrial statistical information. Strengthen statistical monitoring, forecasting, and analysis of high-quality industrial development.
4. Optimize the policy evaluation mechanism. Establish a mechanism for self-evaluation by industrial departments and comprehensive evaluation at the district level. Conduct performance evaluations of policies before, during, and after implementation, and select policies with high funding volumes and high activity levels for special evaluations. Categorize policies based on their implementation objectives, and promptly adjust, optimize, and refine policy content and execution based on performance evaluation results to enhance the efficiency of fiscal funds.
5. Improve cooperation and coordination mechanisms. Strengthen communication and coordination between the district and municipal levels. Actively seek to pilot innovative reforms in key areas within Xuhui first. Promote the inclusion of key sectors, priority areas, and major projects in the district’s development plans to form a synergistic force for coordinated advancement.
