The State Council has decided to turn Shanghai into an international center for finance and shipping. Shanghai has aimed to create these two hubs for years, but this is the first time the goal has received formal approval by the central government.

The executive meeting of the State Council said Shanghai should be turned into a global financial center, and international shipping hub before 2020. 

The meeting proposed major tasks to achieve the target. Firstly, to construct a well-developed, multi-functional, and multi-layered financial market system, gradually push forward the opening-up of Shanghai's financial industry, and improve its financial service level.

Secondly, to optimize a modern shipping system, develop various transport links in an integrated manner, improve the lay-out of the shipping service, and actively introduce financing into the shipping industry's development.

The meeting also decided to make use of the advantage of the manufacturing industry to support the development of the service industry, and continue reform in government and enterprises to create a sound environment for the city's economic and social development.

It also urged Shanghai to develop strategic cooperation with the Yangtze River Delta Region and other major cities, including Hong Kong.

Analysts say the decision will have a profound impact on Shanghai's economic development, especially in dealing with the global financial crisis.

(CCTV March 26, 2009)