The Huang Pu River divides the modern city of Shanghai; Puxi, to the west of the river is the older part of the city, and Pudong to the east is the newest area. The cities government reports that Shanghai’s population was 18.15 million people at the end of 2006.

Economy:
Shanghai is the foremost industrial city in China; however, the farms that encircle the region also play a major role in the economy. Industry encompasses everything from shipbuilding to consumer goods, pharmaceuticals to petro-chemical and tractors to computers. Also, the service sector is fast becoming a large contributor to the regional economy. Another sector that has blossomed in Shanghai since China once again allowed foreigners to travel to much of the country is tourism, and the region has not been slow to realise the money that tourism injects the economy.

According to the World Cities Study Group & Network (GaWC), Shanghai is a Gamma World City, as defined by a number of indicators such as familiarity of name, for example not stating the country name after the city name, active influence and participation in international events and world affairs, a lively cultural scene, the presence of large foreign companies and an advanced communications infrastructure.

The construction sector is extremely active - information from the City of Shanghai shows that, between 1990 and 2004, in the region of 6,704 buildings were completed that exceeded 11 stories. Outside the city there are a high number of residential projects underway, some themed on European towns; most notably Thames Town, complete with English architecture and a pub.

The region is also home to around 20 high-tech, industrial and development zones, of which most include foreign companies within them. In the high-tech and pharmaceuticals fields alone, such internationally known names as Nvidia, Lenovo and GlaxoSmithKline can be found and a brief search will highlight a high number of well-known foreign companies with a presence in Shanghai.

Local Infrastructure:
According to the Shanghai Government, between 2001 and 2005 over 325.721 billion yuan (approximately USD$42 billion) was invested in urban construction projects.

Two airports serve the city, Hongqiao, which is around 14 kilometres southwest of the city, and Pudong International Airport, just over 30 kilometres southeast. Hongqiao Airport was once the region’s international airport, but now deals primarily with domestic flights. Pudong International Airport has become Shanghai’s gateway to the rest of the world since October 1999. In 2006, somewhere in the region of 9 million foreign travellers passed through Pudong Airport, and with current expansion plans for the airport, that figure could rise dramatically. Flight times from London, New York and Los Angeles take approximately 16, 18 and 19 hours respectively.

Transport from Pudong airport to the city centre is relatively simple with buses or taxis, however a more futuristic alternative is available, a MagLev train. The Transrapid Magnetic Levitation train, capable of speeds up to 430 kph, is the first of its kind to see commercial service, running between the airport and the Longyang road subway station (Line 2). However, the service has not been a commercial success, due to not running directly to the city centre and the high cost of travel. In early 2006, the Chinese State Council approved a 170 kilometre extension of the line between Shanghai and Hangzhou; it is hoped it will be completed by 2010, and if built, the journey time between the cities will fall from over two hours to under half an hour.

The Marine Port in Shanghai is the largest in China according to Shanghai International Port (Group) Co., Ltd. The port handled 263 million tonnes of cargo in the first half of 2006 and was expected to handle 500 million tonnes by the end of the year. In the first nine months, 16 million TEU’s (Twentyfoot Equivalent Units) had passed through with an expected 21 million by the year’s end.

Since it first opened in 1995, the city’s subway, has grown rapidly from one line to five lines, with more lines planned. The subway currently covers quite a large part of the city and, along with taxis, makes getting around quite easy - and for foreigner travellers, they are usually a lot cheaper than the equivalents in their own countries. The cheapest way to travel in Shanghai is by bus, at a starting cost of 1 yuan and something like a thousand routes cover the city and suburbs. However, unless you speak and can read Chinese, bus stop signs can be confusing and very few drivers speak English or other non-Chinese languages.

Railways connect Shanghai to most major cities in the country; nevertheless, some journeys can take nearly two days. An example is the trip from Shanghai to the city of Urumqi, some 3,250 kilometres to the west and located less than 500 kilometres from the Kazakhstan border: the timetable shows the duration to be 1 day, 23 hours and 13 minutes.

Local Workforce:
The Shanghai Government stated that by the end of 2005, Shanghai employed 8.62 million people, with unemployment at 4.4% in the urban areas. One of the keys to a prosperous economy is education, and Shanghai is home to some of China’s top institutes of higher education. A nine-year period of compulsory education is in force in Shanghai from primary to school leaving age, with attendance close to 100%. Further education then continues with a choice of nearly 60 universities, vocational and technical colleges. With such educational facilities available, Shanghai enjoys one of China’s most highly skilled workforces.

Standard of Living:
Shanghai is a city of contrasts; in many ways it has entered the 21st century faster than quite a number of other cities around the world. Architecture, technology, services and city planning in Shanghai are at the forefront of what many people’s perception of modern China looks like. Since 2000 the city has taken a number of measures aimed at making Shanghai cleaner and greener, the measures include tackling pollution and more green space (parks etc). In the region, many residential areas have high quality homes usually at prices well below what someone from Europe or the USA would expect; however, for numerous locals it is only those in high paid employment that can afford them.

For eating, Shanghai has the full range of cuisines expected of a modern city anywhere in the world, including branches of American fast food chains selling hamburgers and fried chicken. In general there is something to suit all tastes and pockets, such as the snacks available from market stalls to the bright new restaurants serving world-class fare. Shopping in Shanghai is much like other international cities with all the familiar names and brands such as the British company Tesco (although it is branded as HyMall), Gucci and Prada. For bargain hunters, the city’s open-air markets are a good choice, and can also be a source of entertainment as the traders expect you to barter with them. Another aspect of the open-air markets is that a number of fake products can be found: fake Rolex watches, for instance, can be bought for a fraction of their true cost, but in many countries their import is illegal and may be confiscated by customs on arrival back home.

The Mercer Human Resource Cost of Living Survey 2006 ranks Shanghai in 20th position out of 144 cities world wide, with a score of 91.2. New York is the median for the index, in 10th place (100); Moscow is in 1st place (123.9). Of the five Chinese cities (not including Hong Kong) in the survey, Shanghai was second only to Beijing as the costliest city in China; the three other Chinese cities being Shenzhen, Guangzhou and Tianjin.

Business Costs:
According to the real estate advisory company CB Richard Ellis in 2005, prime office rent in the two areas of Shanghai, Pudong and Puxi, stood at US$436 and US$418 respectively per square metre per annum, comparing favourably with its Chinese and Asian counterparts. The occupancy cost in Hong Kong was US$816, Mumbai US$607 and Tokyo (Inner Central) US$1411.