Contents

Ⅰ General Report

B1 The Analysis and Forecast of Shanghai Macroeconomy in 2019

Zhang Zhaoan, Di Junpeng / 001

Abstract: Based on macroeconomic data of Shanghai in 2018 and before that, and from the perspective of high-quality development, we analyze current and past economic situation of Shanghai. The research shows that Shanghai's economic structure tends to be high-end, its economic efficiency steadily improves, and consumption contributes more to economic growth; the probability of GDP growth in 2018 is lower than that in the last year; the probability of being in the baseline scenario in 2019 is 65.5%，and its GDP remains at the level of 6.5%. In view of the internal and external environment, we put forward that economic development depends on promoting domestic demand in the short term, however technological innovation and institutional innovation is very crucial in the long term, consolidating the real economy, further creating a good business environment, building a new open economic plateau, and promoting Shanghai's economic development to a higher quality.

Keywords: Shanghai Economic; Economic Situation; High-quality Development

Ⅱ Supply-side Reform

B.2 Establishing the long-term Mechanism of Healthy Development of Shanghai real Estate Industry with Supply-side Structural Reform as Handhold

Yao Lingzhen, Zhang Yalin / 015

Abstract: The development of Shanghai real estate industry faces three“new”opportunities in the country, the city and the market: the national economic development enters the new normal, the supply-side structural reform becomes the major strategic deployment to solve the deep contradiction; the city enters the new period of deep transformation, pursues the excellence construction;the market enters a new era which is“houses is used to live in, not to is used for speculation”, the scale and stock are harmoniously resonant. In this context, the establishing of long-term mechanism has become the focus of the current work. Based on the reality of long-term mechanism establishing, this study puts forward policy suggestions from two levels such as optimizing supply structure and safeguarding factor supply: that are（1）Promote the combination of rental and sale, improve the efficiency of housing supply,（2）Innovation system incentives, enrich the main body of housing supply;（3）Establish a dynamic mechanism of land planning to improve unit output efficiency;（4）Develop policy housing finance to encourage innovation in housing finance products;（5）Deepen the reform of household registration system and balance the allocation of the basic education resources.

Keywords: Shanghai Real Estate Industry; Long-term Mechanism of Healthy Development; Supply-side Structural Reform

B.3 Study on Promoting the Structural Reform of Agricultural Supply-side in Shanghai

Guo Lan / 035

Abstract: The problems of agriculture, rural areas and peasants have always been the top priority of the work of the whole party, and we should insist on adhering to the status of peasants'main body and enhancing the well-being of peasants as the starting point and foothold of all rural work, highlighting the advantages of agricultural development, focusing on promoting innovation and supply-side structural reform, and rapidly promoting the transformation so at to promote the stable development of agriculture while raising farmers'income. At this stage, Shanghai needs to focus on changes in market demand, in order to ensure effective supply, increase farmers'income as the main goal, optimize the agricultural industrial system, production system and operating system, focus on solving the problem of mismatch between supply and demand of agricultural products, the lack-accuracy of agricultural subsidies, and promote the transformation of agricultural development to green, ecological, health and sustainable development, especially in the aspect of“quality”.

Keywords: Shanghai Agricultural; Supply-side Structural Reform; Modern Urban Agriculture

B.4 Research on Practical Innovation of Promoting Supply-side Structural Reform in Shanghai

Ma Haiqian, Zheng Rui / 063

Abstract: Shanghai fully implements the decision-making and deployment of the Communist Party of China Central Committee and the State Council, and is fully committed to accelerating the supply-side structural reform, combining its own development characteristics, and constantly innovating in practice. On the one hand, Shanghai had closely combined the implementation of key tasks such as“Three Remove One Reduction and One Supplement”with the actual situation in Shanghai, focusing on the cost of reducing and made up for the disadvantage. On the other hand, Shanghai closely combined the national strategy of building Science and Technology Innovation Center and the pilot Free Trade Area with the structural reform of supply-side, and focuses on promoting technological innovation and institutional innovation.

Keywords: Shanghai Supply-side structural reform; “Three Remove One Reduction and One Supplement”

B.5 Shanghai is Pushing the Research of Supply-side Structural Reform of Taxes and Fees

Chen Mingyi, Wang Dong, Sun Xulin and Li Qian / 084

Abstract: Since 2012, China has been in the development stage of“slowing economic growth”and economic restructuring, and a large number of enterprises are facing challenges and declining performance in their operating. In this context, the group selected Shanghai listed companies as a sample to investigate the tax situation of Shanghai enterprises. In recent years, Shanghai has made great efforts and contributions in upgrading the business environment, and the overall situation is at the forefront of the country. At the same time, from the two aspect such as corporate taxes and non-tax revenue which the enterprise paid. The group found that listed companies in Shanghai bear the burden of taxes and fees in the forefront of the country. Of which, the tax burden of Shanghai enterprises is not much different from other provinces, which is characterized by the heavy burden of social insurance contributions. Therefore, we put forward some policy suggestions to further deepen the reform of tax and fee supply side, including: make incentives for enterprise transformation and upgrading in a multi-dimensional way and further reduce the burden of circulation tax. Strengthen the innovation ability of enterprises, reduce the burden of enterprise income tax, to reduce the proportion of social insurance contributions to reduce the cost of enterprises as soon as possible.

Keywords: Tax Burden; Payment Burden; Ownership; Lndustrial Structure

Ⅲ The Construction of Free Trade Area

B.6 Study on Further Improving the Opening Degree of Shanghai Free Trade Test Area Under the New Situation

Yin Chen, Wang Weixin / 109

Abstract: Shanghai Free Trade Test Area is facing a new international and domestic situation. The new situation puts forward new requirements for the Free Trade Test Area to enhance the opening to the outside. Compared with the highest international standards and the best level, the Shanghai Free Trade Test Area still has different degrees of disparity in trade facilitation, business environment, industrial opening and the construction of Free Trade Port Areas. In the next phase, the Shanghai Free Trade Test Area need further enhances its openness and overcome the“pole effect”and needs to make full efforts to promote the construction of Free Trade Test Area and the lead construction of the“Belt and Road”. And Shanghai needs to try first to build a new economic and trade relationship between China and the United States to explore the road and needs to sum up experience in time to provide institutional public goods.

Keywords: Shanghai Free Trade Test Area; Opening Degree; Institution Innovation

B.7 Research on Deepening System Innovation System Integration in Shanghai Free Trade Test Area

Chen Jianhua / 132

Abstract: Since its establishment in September 2013, the Shanghai Free Trade Test Area had adhered to the system innovation as the core, forming a good situation to promote the transformation and development with reform and innovation. Based on the comprehensive reform of Pudong New area of Shanghai Free Trade Area, streamline administration and delegate power to the lower levels, simplifying the office process, promoting through the reform of the big system and perfecting the comprehensive law enforcement system, to promote the integration of government functions, and constantly optimize the establishment of institutions and initially formed the system and mechanism of institutional innovation system integration. Coordination and cooperation between departments is far from the degree of seamless docking, the complete matter of the post-mortem supervision system and network has not yet been formed. Therefore, it is necessary to build a big data platform for information interconnection and sharing among government management departments as the handhold, optimize the management process, promote the cooperation between the functional departments, and focus on constructing a transparent, efficient and convenient large-level supervision mode and service system with the idea of“Government-led”, “Industry Self-discipline”, “Enterprise Self-control”“Four-in-one”and to form a management service organization system and institutional system with system integrated.

Keywords: Free Trade Test Area; Institution Innovation; System Integration

B.8 The mission, Principle and Policy Suggestion of tax Policy Innovation in Free Trade Area

Wu Zhanxia / 152

Abstract: Through field research, network research, literature translation and statistical data analysis, the group summarized and analyzed the current tax policy of Shanghai Free Trade Area, furthermore, through drawing lessons from the successful policy characters of Pusan and Okinawa for industrial convergence, the paper analyzes the situation of international tax competition in combination with the latest situation. Statistical analysis shows that China's unified Free Trade Area tax policy is lack of advantage than the major trading partner countries and competitive Free Trade Areas. All over the country with fiscal policy instead of tax policy will attract the agglomeration of production factors, which will bring the inefficient use of financial funds. The corporate taxation of Shanghai Free Trade Test Area was in the intermediate state of the corporate taxation of various economic development zones. The Free Trade Test Area did not become a“tax depression”, and the original intention of the tax system design of the Free Trade Test Area was well reflected. At the same time, compared with the current tax burden of foreign Free Trade Area, the project team put forward further proposals for tax reform: 1）Reduce the preferential threshold, use of the current corporate income tax preferential framework flexible, 2）Draw lessons from Singapore, there shall be territorial principles for administration in the test areas, 3）Simplify the transfer tax system, realize a tax system with“outside the customs and within the boundary”, 4）Establish a fiscal power system to match authority.

Keywords: Free Trade Area; Tax Policy; Reform and Innovation

B.9 The Study on the Linkage Mechanism Between Shanghai Free-Trade Zone and International Financial Center Construction

Xu Meifang / 181

Abstract: This paper thinks that in addition to adhering to the experience of reform and opening up, the joint development of financial industry and Shanghai International Financial Center in Shanghai Free Trade Area is one of the valuable experiences in the construction of Shanghai International Financial Center. Further perfecting the linkage mechanism between the development of financial industry and the construction of International Financial Center in Shanghai Free Trade Area has a great impact on the construction of Free Trade Areas and the construction of Shanghai International Financial Center in the future.

Keywords: Shanghai Free-Trade Zone; International Financial Center;Linkage Mechanism

B.10 Study on the Linkage Mechanism between the Shanghai Free Trade Test Area and the construction of Science and Technology Innovation Center

Chen Xiaojing, Chen Xiaoyu and Li Wenting / 206

Abstract: Draw lessons from existing relevant research, through domestic and foreign research and expert interviews, and draw lessons from international experience, this research mainly focuses on four aspects:（1）The present situation and advantages of the“linkage”mechanism of the Shanghai Free Trade Area and the construction of the Science and Technology Innovation Center;（2）Challenges and constraints faced by the Shanghai free Trade Area and the Science and Technology Innovation Center, especially how to adapt to the impact and challenges of big data, blockchain technology, cloud computing, etc. ;（3）Shanghai Free Trade Area and science and Technology Innovation Center construction linkage Mechanism: international experience and reference;（4）Countermeasures and suggestions for the linkage between Shanghai Free Trade Area and Science and Technology Innovation Center.

Keywords: Technical Innovation; Blockchain Technology; Linkage Mechanism; Policy Recommendations

Ⅳ City Innovation

B.11 Building an Excellent Global City-the Status Quo and Prospects of Shanghai

Mei Xiaoying / 236

Abstract: In December 2017, the State Council replied to agree the“Shanghai Urban Overall Plan（2017-2035）”, the plan puts forward the basic framework of Science and Technology Innovation Center with global influence in Shanghai in the 2020, and basically builds the international economic, financial, trade, shipping center and socialist modernization international metropolis. In the 2035, basically built a remarkable global city, a desirable city of innovation, the city of humanities, the city of ecology, with the world's influential society which pay attention to the modern international metropolis. By 2050, Shanghai will be a global city of excellence, a city of innovation, a city of humanity, a city of ecology and an international metropolis of socialist modernization with worldwide influence. A global city is a city in which the world economy or urban network is centered and has some control and influence over the global political economy and culture. At present although Shanghai is gradually rising among the major international cities, there is still a certain gap between the global cities that have become outstanding, and it is necessary to continue to make effort to the construction of the city of innovation, the city of humanities and the city of ecology.

Keywords: Shanghai; Global Excellence City; Urban Plan

B.12 Research on the Development of High-end Manufacturing Industry in Shanghai under the New Era

Lei Xinjun, Deng Lili and Hu Jingyuan / 252

Abstract: High-end manufacturing industry is the reflection of the high-end and advanced technology of the industrial value chain, is the practice of“Made in China in 2025”and other national strategies, is also the focus of global competition, the core of the transformation and development of Shanghai's manufacturing industry, but also gradually become a symbol of Shanghai brand manufacturing. Shanghai high-end manufacturing industry must be integrated and think systematical from three dimensions of the status quo, the future and the overall situation（national and global）, grasping the strategic opportunities such as deepening domestic reform, “Made in China in 2025”and Shanghai“The Science Innovation Centre”, in line with the new trend of global scientific and technological innovation, to form a high-end manufacturing development model driven by innovation and integrated development from the supply side reform, industrial development, talent, carrier and other aspects.

Keywords: New era; Shanghai high-end Manufacturing Industry;Development Problems; Countermeasures

B.13 Exploration and Practice that Shanghai is Reducing Institutional Transaction Costs

Shen Kaiyan, Peng Hui and Lu Yidi / 270

Abstract: As China's economy enters the new normal, reducing institutional transaction costs has become the focus of promoting supply-side structural reforms. Shanghai is facing a key point that is gradually driving the transition and transformation to innovation, on the one hand, it bears the great responsibility of“taking the lead in transforming the mode of economic development”, on the other hand, it is also facing the problem of influencing the transformation of enterprise innovation because of the high cost of institutional transaction. In this paper, the author will first explain the theory of cost trading, especially the theory of institutional transaction cost, on the basis of which to sort out the idea of reducing transaction costs, combined with the practice of reducing institutional transaction costs in Shanghai, and explore ways to further reduce the cost of institutional transactions.

Keywords: the cost of Institutional Trading; Three Remove One Reduction and One Supplement; Streamline Administration and Delegate Power to the Lower Levels; Regulation in and After Maters