On January 25th, 2015 Shanghai’s mayor, Yang Xiong, gave a speech to the Shanghai Municipal Peoples Congress addressing ways to combat Shanghai’s declining growth rate.
While the China’s national growth rate in 2014 was 7.4%, Shanghai’s 2014 growth rate was 7%. This came as surprise and, “marked a rare disappointment for a city that often outpaced the national expansion.” Other metrics such as per-capita urban household disposable income were used to represent economic growth. In 2014, the per-capita urban disposable household income increased by 8.8%.
To combat the declining growth of Shanghai, the mayor outlined many new policies to create new free trade zones. In addition to these new free trade zones, the mayor hopes to implement policies that will let investors exchange yuan to foreign currency with more ease. These new policies will hopefully increase trade, and foreign investment, allowing Shanghai to counteract it’s declining growth.