Globalization and Shanghai Model: A Retrospective and Prospective Analysis

Intended to shed light on the debate on the results of globalization and providebetter understanding of the influences of globalization upon China as well as theworld, this article traces the history of Shanghai’s economic globalization over thepast 170 years since 1843 and demonstrates the benefits and problems Shanghaireceived from (or connected to) its economic globalization. Divided into threesections (Globalization, de-globalization and re-globalization of Shanghai’s economy;Manufacturing-Oriented vs. Tertiary-oriented—Shanghai’s Double PriorityStrategy of Economic Growth; Free market, state enterprises, and Shanghai’s mixedeconomy) the article summarizes and analyzes several characteristics that madeShanghai a unique model in the history of globalization: In adapting and adoptinginevitable economic globalization, Shanghai created its unique model of economicdevelopment—widely embracing economic globalization; placing Shanghai’seconomy on a solid foundation of both strong modern manufacturing and strongtertiary industry (consisting of finance and insurance, real estate, transportations,post and telecommunication, wholesale and retailing); and creating a mixedeconomic structure with hybrid of private and state owned enterprises. TheShanghai model proves that globalization has been an unavoidable trend as scienceand technology have made the world “smaller” and “smaller.” Actively engaging intoeconomic globalization is the only way for Shanghai, as well as many developingcountries, to accelerate its economic growth.