The Overall Commercial Development in 2009 & Priorities in the Foreign Economic Development in 2010 Mr. Yang Guoqiang Vice Chairman Shanghai Municipal Commission of Commerce

1. In 2009, Shanghai’s Commercial Development Stood a Rigorous Test with Hard-won Achievements.

A Steady Growth in Commerce & Trade Retail Sales of Social Consumer Goods Sales of Commodities Retail Sales of FIEs 14%19.3%14.4% 14.7%15.1% Compared Growth Actual Growth CNY bnCNY 3.2 tn CNY bn Total Value

The Actual Paid-in FDI Hit a Historic High Again. A Rise in the Quality of the Utilization of FDI A Good Momentum in the Development of Headquarters Economy An Accelerated Growth in Service Outsourcing

Foreign Economic Cooperation Became a Highlight.  A Rise in the Big Outbound-investment and M&A  An Upgraded Scale and level in Contracting Foreign Projects  An Optimized Structure in the Outbound Labor Force

Foreign Trade Maintained Growth Both in the Markets and the Share. ★ An Optimized Structure of the Foreign Trade ★ A Growing Proportion in the Export Contributed by the FIEs ★ An Unchanged Pattern in the Traditional Market

Three Distinctive Features of Shanghai’s Commercial Development in 2009: 3. Many Highlights in the Work 2. An Initiative Taken to Serve Enterprises 1. An Intensive Release of Policies

2. In 2010, Shanghai’s Commercial Sectors will Face up to the Challenges and Go All-out to Make New Achievements in Foreign Economic Development.

“Four Ones”—the General Idea of Shanghai’s Commercial Development: Seizing One Opportunity Revolving Round One Main Line Emphasizing One Priority Consolidating One Foundation

The main target: a 16% rise in the total retail sales of social consumer goods; a 18% growth in the total sales of commodities; a 8% increase in the total volume of trade in commodities; a 15% enhance in the total volume of trade in services. Based on the optimized structure, the utilization of FDI keeps a moderate scale with the outbound investment rising 10%.

1. Transferring the Development Mode of Foreign Trade & Enhancing International Competitiveness

 Exploring Emerging Markets  Optimizing Product Structure  Intensifying the development of Trade in Services 1. Transferring the Development Mode of Foreign Trade & Enhancing International Competitiveness

2. Innovating Business and Investment Attraction & Upgrading the Utilization of FDI

▲ Promoting Investment Restructuring ▲ Developing Headquarters Economy ▲ Enhancing Trade in Services ▲ Developing Business Attraction of the EXPO 2. Innovating Business and Investment Attraction & Upgrading the Utilization of FDI

3. Continuing the Implementation of “Going Global” Strategy & Expanding the Economic Development

Promoting Multinational Investment and M&A Enlarging the Capacity in Contracting Foreign Projects Encouraging qualified enterprises with whatever ownership to “go global”; Promoting the joint cooperation between companies at home and abroad; Accessing to the market, technology, brand and sales network through the M&A; Strengthening the investment in important resource-exporting countries and developed countries; exploring new strategic development Encouraging our companies to cooperate with big and strong partners; expanding the models and fields in contracting foreign projects; coordinating competitive companies to undertake more big and medium-sized foreign projects; supporting companies with engineering projects to cooperate with financial companies; bringing forward the export in complete set of equipment and construction materials 3. Continuing the Implementation of “Going Global” Strategy & Expanding the Economic Development

4. Promoting Trade and Investment Facilitation & Optimizing the Environment for Commercial Development

Thank You