(Yicai Global) Feb. 1 -- Shanghai plans to speed up construction of major projects worth more than CNY100 billion (USD14.8 billion), according to the city's mayor.
They include those of Tesla, Volkswagen and National Electric Vehicle Sweden, among others, Ying Yong said at press conference yesterday. This doesn't mean the city is abandoning traditional manufacturing, he added, but it wants to promote advanced, high-end manufacturing and strategic emerging industries.
Shanghai has proposed accelerating the building of a modern industrial system with modern service sector as the main body, led by strategic emerging industries and supported by advanced manufacturing.
"We're also speeding up the construction of projects worth more than CNY100 billion, including those of Semiconductor Manufacturing International, and Huali Microelectronics' Phase II project," Ying said.
"We'll unveil more major projects in integrated circuits, artificial intelligence, and biomedicine which are in line with the direction of scientific and technological reforms and industry development while cultivating and upgrading industries of aerospace, automotive, and high-end manufacturing equipment."
Volkswagen's joint venture SAIC Volkswagen started building its first MEB electric vehicle plant in October. The project, with a total investment of about CNY17 billion, is expected to go into operation in 2020 and produce 300,000 new energy vehicles a year for brands like Audi, Volkswagen and others.
Tesla's first overseas Gigafactory officially started construction at the Shanghai Lingang Industrial Zone on Jan. 7. With about CNY50 billion of total investment, the factory will produce 500,000 cars annually, including Model 3 and other series.
Shanghai's policies for Tesla were in line with national standards without any special considerations, according to Han Dadong, director of the Equipment Industry Division of the Shanghai Municipal Commission of Economy and Informatization. The city secured the project thanks to its business environment, industrial infrastructure and talent resources, he added.