"The city still faces many difficulties, although it has made a number of achievements in the past five years," Xu said.

He said the local business environment needed to be improved, more jobs created, farmers' incomes raised and the social security system developed.

"All these problems will be overcome by a faster economic growth rate," the mayor told congress deputies.

In his report on the city's economic and social development, which was delivered to the congress, Xu said the city's gross domestic product (GDP) is expected to grow by 9 to 11 percent in each of the next five years.

"If the goal is reached, the city's GDP will total 730 billion yuan (US$88 billion) in 2005," the mayor said. By then, per capita GDP will reach 54,000 yuan (US$6,510) -- much higher than last year's 34,560 yuan (US$4,165).

To fulfil the objective, the city government plans to invest 1,000 billion yuan (US$120 billion) between 2001 and 2005 in local fixed asset projects.

According to Li Liangyuan, director of the city's Development Planning Commission, about 190 billion yuan (US$22.9 billion) will be spent on the projects this year.

The big financial input aims to improve the city's competitiveness and prepare for the challenges likely to be faced after China's accession to the World Trade Organization (WTO).

"The existing industry will be restructured to meet the challenges," the mayor said.

In the next five years, the city will develop information technology, finance, commerce and trade, automobiles, manufacturing and real estate into its six new pillar industries.

"They will become a major part of the city's growing economy," said the mayor.

Four growing industries including biomedicines, new materials, environmental protection and transport will be encouraged to develop. Priorities will also be given to develop the petrochemical and iron and steel industries.

As China's economic center, Shanghai will pay particular attention to develop its banking industry focusing on the stock market, foreign currency exchange and insurance, Xu said.

(China Daily 02/08/2001)