Shanghai is one of the world’s greatest cities in the 21st century
Dr. Hasan Dajah–Professor of Strategic Studies at Al-Hussein Bin Talal University
Shanghai continues to strengthen its position as one of the world’s leading economic cities thanks to its outstanding achievements in 2023. The city’s GDP reached 4.72 trillion-yuan, equivalent to 660.45 billion dollars, making it the first in China in terms of economic size. In addition, Shanghai’s per capita disposable income increased by 6.6% to 85,000 yuan, reflecting a significant improvement in the standard of living and well-being of the population, and making the city more attractive to talents and investments.
Shanghai’s achievements are not limited to economic growth only, but also manifested in its global leadership in the port sector. The Port of Shanghai handled about 49.16 million TEUs in 2023, maintaining the global lead for the fourteenth consecutive year. This outstanding performance reflects the port’s vital role in facilitating international trade, accounting for 3.6% of the world’s total trade volume.
In terms of foreign trade, Shanghai recorded a foreign trade volume of 4.21 trillion yuan in 2023, an increase of 0.7% year-on-year. This growth exceeded the national average by 0.5 percentage points, highlighting the city’s ability to adapt to global economic challenges and achieve sustainable growth. This strong performance reflects the strength of the local economy and investor confidence in Chinese markets.
In terms of financial markets, Shanghai is the world’s largest in terms of trading volume, with the city’s financial market trading volume reaching 3.37 quadrillion yuan in 2023, making it the world’s number one financial center. This leadership enhances Shanghai’s position as an indispensable financial center for investors and multinational companies, which contributes to attracting more capital to the city.
In the field of innovation, Shanghai ranked fifth in the world in the Global Innovation Index 2023, reflecting its role as a leading science and technology center. The city invested 4.4% of its GDP in research and development, enhancing its capacity for innovation and technological advancement.
This large investment in research and development contributes to driving economic growth and creating new job opportunities in advanced sectors. Foreign direct investment in Shanghai reached record levels, reaching $24.09 billion in 2023, exceeding the $20 billion mark for four consecutive years. This large figure reflects the confidence of global investors in the city’s local economy and its ability to attract foreign capital. Moreover, Shanghai hosts the largest number of regional headquarters of multinational companies and foreign-funded R&D centers in China, with 962 regional headquarters and 561 R&D centers in 2023, enhancing the city’s role as a global center for business and innovation. Shanghai is also home to the largest pool of foreign talent in China, with the city issuing 434,000 work permits to foreigners and hosting 12,000 foreign nationals with permanent residence permits. In addition, the city attracts more than 270,000 students returning to work or start businesses after completing their studies abroad, reinforcing its position as a destination for creative and innovative minds.
In the area of cross-border RMB settlements, Shanghai topped the national level, accounting for 43.5% of the total, exceeding 20 trillion yuan. This achievement reflects the city’s role as a global financial center that connects international markets and facilitates cross-border financial operations. Shanghai also ranked seventh in the world in the 2023 Global Financial Centers Index (GFCI) and sixth in the Global Asset Management Centers Index, reflecting its high competitiveness in the global financial arena.
In addition, Shanghai is a world leader in e-sports, topping the global city rankings in this field, which enhances its position as a cultural and entertainment hub that attracts young people and talent in this growing sector. In terms of the transition to clean energy, the city registered 354,000 new energy vehicles (NEVs) in 2023, bringing the total ownership of electric vehicles to 1.29 million units, making it a global leader in this vital field towards a more sustainable future.
Finally, Shanghai is a role model for comprehensive economic development, combining rapid economic growth, technological progress, innovation, and attracting talent and investment. These achievements make Shanghai a major player in the global economic arena and enhance its position as one of the world’s greatest cities in the 21st century, opening up broad prospects for further growth and development in the coming years.
