China's State Council, or cabinet, says eastern Shanghai's future lies in modern service, manufacturing and continuing to be an international financial center and shipping hub.

Container cranes manufactured by the Shanghai-based Zhenhua Port Machinery Co crowd the skyline at a port in Shanghai on Wednesday. The State Council yesterday tapped the city to become a major international shipping hub by 2020 as the central government called for an integration of port resources in the Yangtze River Delta region. [Shanghai Daily]

"Shanghai's economy and social development have made great achievements during the past 30 years of opening-up. Now it has come to a key transition point," the State Council said in a statement Wednesday.

"To accelerate Shanghai's development pace in modern service, manufacturing, financing and shipping would be of great significance for the Yangtze River Delta and the whole nation at large," the statement said.

It urged Shanghai to be developed into a multi-functional financial center by 2020 to keep up with "China's economic influence and the Chinese yuan's international position."

To achieve the target, Shanghai needed to open up more financial sectors and improve its financial services.

In addition, it needed to "optimize resources in the Yangtze River Delta and improve shipping services" to develop the industry.

Shanghai should also focus on its advantages in manufacturing and deepen its reforms as to provide stronger support to the tertiary industry, the statement said.

It also urged Shanghai to improve cooperation with other major cities in the Yangtze River Delta areas and strengthen strategic cooperation with Hong Kong.

The State Council on Wednesday also said China would raise the export tax rebate on some textile, iron and steel, nonferrous metal, petrochemical, electronic information and light industrial exports as of April 1.

(Xinhua News Agency March 26, 2009)