What are the remaining shortcomings that we face, highlighting the strategic position of high-quality development and strengthening the global resource allocation function? China | International | High quality

As one of China's economic centers, Shanghai undertakes the important mission of exploring the practical path of Chinese path to modernization and implementing the new development pattern. In the new situation, we need to focus on deepening the construction of the "five centers", continuously enhancing the "four functions", strengthening the global resource allocation function, demonstrating the strategic position of high-quality development, and building a world-class factor market system that relies on China, links with the Asia Pacific region, and serves the world, achieving a leap in the level of key factor markets, the power of rule discourse, and pricing power.

"Profound changes in factor form markets"

With the digital information revolution and global climate change, the forms of elements have become increasingly diverse, including not only traditional tangible elements such as material capital, labor, energy, resources, land, etc., but also emerging intangible elements such as knowledge, information, data, environment, etc.

With the changes in factor forms and organizational forms, the spatial pattern of factor markets is accelerating adjustment, and a group of emerging factor markets are emerging.

One is the capital factor market, such as banks, securities, insurance, futures and other markets.

The second is the energy factor market, which includes traditional fossil fuels such as coal, oil, and natural gas, as well as new energy and energy storage markets.

The third is the talent factor market, which provides a continuous source of intelligence for knowledge aggregation and innovation achievement transformation.

The fourth is the market for technological elements, such as intellectual property, patents, and other markets.

As an intangible factor of production, technological factors are scarce, and the value of technology lies in its circulation. Through transactions between market entities, achieve the transformation of technological achievements in the fields of production and life.

From the current market structure of technological elements, Hong Kong, China is the most important intellectual property trading center in the Asian region, with a mature service system in intellectual property protection, litigation, and commercialization.

The fifth is the data element market, which involves production, urban management, scientific research, and other aspects of the data market.

The sixth is the resource and environmental factor market, which involves carbon trading, emission rights, and so on.

As a new factor of production, resources and environment have increasingly obvious hard constraints on production. Currently, the scale of carbon emissions trading business is largest on the US Intercontinental Exchange, followed by the European Energy Exchange. With the upgrading of the United Nations Clean Development Mechanism to a Sustainable Development Mechanism, carbon emission trading systems in various regions are gradually moving towards interconnectivity.

For Shanghai, strengthening the global resource allocation function and building a world-class factor market have five advantages.

Firstly, the overlapping of multiple national strategies.

Shanghai is not only a key node in the unified national market, but also a core city for major regional strategies such as the integration of the Yangtze River Delta and the development of the Yangtze River Economic Belt. As the central city of the Yangtze River Delta urban agglomeration, Shanghai has a vast economic hinterland and strong leading and radiating capabilities.

Secondly, there are abundant talent resources.

Shanghai has a large number of high-level higher education institutions and top research institutes, making it a gathering place for professional and technical talents in various fields. A series of policies to promote the construction of talent highlands, continuously attract high-level overseas talents to return, and lay the foundation for building a world-class talent factor market.

Thirdly, the headquarters economy is strong.

As of 2022, Shanghai has established a total of 891 regional headquarters for multinational corporations and 531 foreign-funded research and development centers, making it one of the most prosperous cities in terms of headquarters economy. It plays a unique role in leading consumption upgrading and linking domestic and international markets and resources.

Fourthly, it is a hub for international exchanges.

Currently, the number of international organizations setting up headquarters or branches in Shanghai continues to grow, including heavyweight international organization headquarters such as the Shanghai Cooperation Organization, the BRICS New Development Bank, and the UNESCO Teacher Education Center. This will help to enhance Shanghai's visibility in international exchanges and intergovernmental cooperation.

Fifth, the trading platform is sound.

National securities, futures, precious metals, energy and other financial exchanges converge in Shanghai, providing a platform support for Shanghai to build a world-class factor market system.

"Building a collaborative model of 'points, lines, and surfaces'"

In contrast to the goal of strengthening the global resource allocation function, Shanghai still faces shortcomings such as weak pricing and rule discourse power, urgent need to accelerate the layout of emerging factor markets, and insufficient regional collaborative allocation capacity. Next, efforts can be made in the following areas:

Firstly, establish a spatial collaboration model that integrates inter regional linkage and collaboration.

At the Shanghai metropolitan area, Yangtze River Delta urban agglomeration, and even larger spatial scales, through market entities' economic and technological connections, social and public exchanges, and intergovernmental cooperation, further enhance the sharing of logistics, human flow, capital flow, technology flow, information flow, and public services, and construct a spatial cooperation model that combines "points, lines, and surfaces".

For example, the Yangtze River Delta can achieve river sea linkage and cooperation in areas such as oil and gas infrastructure cooperation, new energy development, and regional energy resource allocation, effectively ensuring national energy security.

Secondly, there is a shift from competition in factor scale to competition in functional services.

By benchmarking cities such as New York and Singapore, we will promote the construction or introduction of a number of global financial service institutions, high-end think tank service centers, etc., and shape a fully functional, inclusive, open, fair and just service environment.

Especially, we can actively leverage the resource advantages of public legal services such as arbitration institutions, notary institutions, and law firms in Shanghai, provide an international mechanism for resolving commercial disputes, and build a legal service center based in the Asia Pacific region and radiating globally.

Thirdly, build an international hub for cultural exchanges.

On the one hand, by retaining the unique regional environment, cultural characteristics, architectural style and other "genes" of the city, we can solve the diverse needs of life, work, housing, consumption, etc., enhance the temperature of urban development, and create a "gravitational field" of talent and technology.

On the other hand, attracting more intergovernmental and non-governmental international organizations to settle in, relying on the Shanghai Cooperation Organization, the BRICS New Development Bank, and other organizations to host large-scale international conferences and activities, further creating an inclusive and open international cultural exchange environment.

Fourthly, seize new tracks such as the international data element market.

On the basis of ensuring national security, trade secrets, and personal privacy, we will rely on carriers such as the Shanghai Data Exchange and the Lingang New Area International Data Port to build a high-level data element platform, and first attempt to carry out the construction of basic institutional systems such as data property rights, circulation, trading, income distribution, and governance.

At the same time, relying on a number of major engineering projects, cross-border cooperation agreements, international institutions, etc., establish a two-way, trustworthy, and secure cross-border data circulation channel and application mechanism, and build Shanghai into a new hub for data centers in the Asia Pacific region.

Fifth, accelerate the layout of new frontiers such as resource and environmental factor markets.

For the resource and environmental rights market, we can take the lead in exploring the establishment of environmental rights contract products, pricing mechanisms, and industry standards such as water rights, energy rights, and pollution discharge rights.

In addition to promoting the construction of a national unified carbon quota market, we can accelerate the layout of the forefront of international voluntary carbon trading markets, take advantage of opportunities such as the launch of the United Nations Sustainable Development Mechanism and the accelerated restart of the China Certified Voluntary Emission Reduction Trading Platform, timely launch voluntary carbon market trading products based on international standards, and actively participate in global carbon pricing and carbon market connectivity.