Shanghai Municipal Government recently released the new Guidelines on Layout and Direction of Shanghai Industries Development, posting the six pillar industries of the cosmopolitan as follows:（1）Electronic communications; （2）Auto industry;（3）Power plant facilities and large-scale mechanical and electrical products; （4）Petrochemical industry; and （5）Biochemical and pharmaceutical industry.

Various preferential policies issued by the local authorities will encourage the development of the six industries. The government will also support the development and production of software, textiles and cosmetics. Industries that are banned or restricted from further investment are also listed.

In addition, to reflect China's WTO commitments, Shanghai will also relax the restriction on seven industries in service sector. These include: （1）Wholesaling, retailing and logistics services on general goods; （2）Accounting and auditing; （3）Higher education;（4）Construction and operation of cinemas;（5）Distribution of audiovisual products;（6）Telecommunication value-added services; and（7）Freight transportation by road.

Shanghai schedules to attract foreign investment in establishing international logistic centers, Sino-foreign joint venture travel agencies and wholesale companies citing an official at the Shanghai Municipal Foreign Economic Relations and Trade Commission.

─Linus Zhu