The development of Pudong in the past thirty years has been a miracle. From an insignificant district of Shanghai that was dominated by farmland to one of the most important financial district and business hub in the world, the development of Pudong symbolises the rise of China on the global stage. The development of Pudong also highlights the vision of Chinese policy makers on making long term plans for the city and the whole country in general. This has now become the unique advantage of the Chinese model of development. The ability to make long term plans and decisions for the country and also the ability to carry out these initiatives.
Pudong in the Chinese language means “The East Bank of the Huangpu River”. It was originally referred to the less developed land across the Bund (Shanghai’s Old City and foreign concessions). The area was traditionally dominated by warehouses, farmland and wharfs. In 1958 Pudong was established as a county and in 1961 the county was split among Huangpu, Yangpu and Nanshi. Great changes were taken place in 1992 when Pudong County and Chuansha County merged and established the Pudong New Area.
Since the start of the 1990s, the State Council of China and the Shanghai government have been looking at ways to transform and rejuvenate the city of Shanghai. Urban planning and construction were some key areas that they focused on. In 1993, the State Council of China set up a Special Economic Zone in Chuansha, creating the Pudong New Area. This policy initiated by the State Council will later proved to be the determining factor on building the prosperity and success of Pudong. When Nobel Prize laureate Milton Friedman visited Pudong in the early 1990s, he was a bit pessimistic about the future development of the area. As a firm believer in free market and the invisible hand, he had always been doubtful of government’s role in setting up plan and development for a region. He believed that development plan such as Pudong initiated by the government will not succeed. In his opinion only development plan initiated and undertaken by the private sector could succeed. However, this time the great Friedman was wrong. His analysis will be defeated by the marvellous reality of Pudong’s coming success.
Following the State Council’s plan to turn Pudong into a Special Economic Zone, the western tip of the county was designated as the Lujiazui Finance and Trade Zone. This area has now become the financial hub of China and also one of the most important financial centres in the world. The Greater China headquarters of many influential and important corporations are now all located in this area. Many skyscrapers in this area form the beautiful and stunning skyline of Shanghai. They include the Oriental Pearl Tower, Jin Mao Building, Shanghai World Financial Centre and Shanghai Tower. These skyscrapers have also become a major tourist attraction in Shanghai and the pictures of these majestic buildings often appear on the travel brochure and promotion advertisements of Shanghai. They have now become the symbol of the modernity of Shanghai. In the year 2010 Pudong served as the main venues of the Shanghai Expo, whose grounds have now become a park for the civilians to use.
The success of Pudong in the past 30 yeas has been an absolute miracle. The once desolate farmland has now turned into a prosperous and developed region in which skyscrapers rise, significant amount of economic output is created everyday and also where some of the world class infrastructure are located. The Pudong International Airport has now become one of the largest and busiest airports in China. The first ever Disneyland opened in mainland China in 2016 also chose its location in Pudong. Pudong also has the oldest commercial maglev still in operation. The maglev train line that connects the Shanghai Subway system with the Pudong International Airport. These are all great symbols of the rapid development of Shanghai and China since the Opening Up and Reform policy in 1978.
Chinese government has now set up a new vision for Pudong and Shanghai, that is to become one of the most competitive and technologically driven cities in the world. The financial district in Lujiazui has also been given the important responsibility on maintaining the financial stability and also controlling the systematic risk in China. The government also hopes Pudong will play an ever-increasing role in the globalisation of the RMB by establishing contacts and cooperation with financial institutions from all around the world. The Shanghai Stock Exchange is also looking forward to have more interactions and exchanges with its colleagues in New York and London. Shanghai and Pudong will be an important part of China’s journey to become one of the most influential financial power in the world. And the city of Shanghai and Pudong will surely provide great opportunities for global investors and aspiring business leaders in the future. Given China’s pace of development and the growing desire on achieving a new model of development based on innovation and sustainability, maybe one day Pudong will rival Wall Street in the world of finance. Let’s wait and see!
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