The plan, which lays out national social and economic policies for the next five years, will include developing new energy sources, increasing energy efficiency in industry, and correcting imbalances in education, healthcare, housing, income distribution, and social security.
Policy goals
- Economic growth Maintaining a stable economy and improving living standards remain priorities.
- Urban and rural development Increasing urbanization, narrowing the income gap between urban and rural citizens, and connecting China’s cities with rural areas remain top concerns. A government economist recently said that China would invest up to ¥7 trillion ($1 trillion) to develop urban infrastructure, including ¥700 billion ($102.5 billion) on urban rail transit during the period.
- Energy efficiency Shanghai will set policies to achieve two major energy targets by 2020: reducing carbon intensity by 40-45 percent of 2005 levels and increasing the use of non-fossil energy to 15 percent of primary energy consumption. Because China is behind on its goal to reduce energy intensity, experts speculate that the country might have to strengthen its energy targets to reach these long-term targets.
- Basic public services Improving social insurance, healthcare services, and education remains a policy goal.
- Regional development Regional development policies have focused solely on generating rapid economic growth in underdeveloped areas.
Emerging policy goals
Support new industries by adopting measures to encourage the development of emerging industries, particularly biotechnology, energy conservation, new energies, and new materials. The plan is also expected to support Shanghai’s indigenous innovation policy by encouraging ministries to continue to develop favorable financial, human resource, tax, and other policies to spur innovation.
The plan makes it clear that energy efficiency, economic restructuring, and industry revitalization will remain priorities for the next five years and over the long term. As companies form their corporate objectives, identifying areas in which their business can align with government priorities can result in long-term government support.
Shanghai’s economy, battered by a two-month citywide lockdown earlier this year, will grow at a clip in 2023 as China’s exit from its zero-Covid policy ushers in a wave of foreign capital to the mainland’s commercial capital, according to an economic adviser to the local government.