by YANGSHU Hongji

Shanghai is laying out a five-year industrial strategy that places advanced manufacturing, semiconductors, artificial intelligence and green technologies at the center of its growth plans for 2026–2030.

The approach, set out in proposals released on Jan. 19 for the city's 15th Five-Year Plan, is built around a framework dubbed "2+3+6+6" by city officials, aimed at modernizing legacy industries while investing in new growth areas.

An official from the comprehensive planning division of the Shanghai Municipal Commission of Economy and Informatization said the plan is intended to strengthen Shanghai's industrial competitiveness by upgrading its existing base and cultivating future-oriented sectors.

The framework combines two cross-cutting transitions — digitalization and decarbonization — with three leading technology sectors, six upgraded industrial pillars and six future industries.

The focus on digital and low-carbon upgrades reflects pressure on traditional industries such as chemicals, steel and light manufacturing to adapt to rising costs, tighter environmental rules and shifting global supply chains.

Official data show Shanghai's traditional industries recorded a revenue profit margin of 6.2% in 2024, 0.8 percentage points higher than the national manufacturing average. Nearly 30% of companies in these sectors have expanded into higher-growth, technology-driven businesses, while such products account for about half of output in segments including metals and chemicals. After years of technology investment and overseas expansion, parts of Shanghai's steel, chemical and textile industries now have an established presence in international markets.

The three leading industries — integrated circuits, biomedicine and artificial intelligence — became major drivers of growth during the 2020–2025 period. Shanghai's semiconductor cluster has developed into one of China's most advanced, amid efforts to curb reliance on imported chips under tighter technology restrictions. The biomedicine sector expanded to 984.7 billion yuan in 2024, while output from major artificial intelligence companies is estimated to have exceeded 550 billion yuan last year, up more than 30%.

Six emerging pillar industries form the industrial base of the city. Among them, new energy and green low-carbon industries have been elevated for the first time, reflecting a broader shift toward aligning industrial policy with climate goals and rising global demand for low-carbon equipment. Shanghai already has a relatively complete industrial chain and a sizable manufacturing base in new energy equipment, with future efforts set to focus on technology upgrades and brand development rather than capacity expansion alone.

The final element of the framework covers six future industries spanning advanced manufacturing, information technology, materials, energy, space and health. The city plans early investment in these areas, with a focus on accelerating the transition from laboratory research to market applications, particularly in fields where global standards and leaders have yet to be firmly established.

The strategy reflects Shanghai's effort to maintain its position in advanced manufacturing at a time when industrial investment is becoming more capital-intensive and returns harder to secure, with policymakers betting that deeper industrial coordination and intelligent manufacturing can help sustain the city's competitiveness over the next decade.