Xuhui District is located in the southwest of Shanghai City, abutting upon the Huangpu River, facing Pudong New Area across the river on the east and Hongqiao Economy & Technology Development Zone on the west, leaning toward Minhang Economy & Technology Development Zone on the south and Huaihai Middle Road Business Street on the north, being close to Luwan, Changning, Minhang, Jing’an districts, etc., being a main entry-exit route of Songjiang, Jinshan, Qingpu, Fengxian counties etc. and an important land passageway to the provinces of Jiangsu, Zhejiang, Jiangxi, Fujian and Anhui, etc..

In modern times, under the influence and drive of rapid development of capitalist market economy, modern national industry in Chinese territory area of Xuhui District, which was led by Longhua Gunpowder Plant opened by Shanghai Jiangnan Manufacturing Main Office in 1870s, achieved slow development. After the World War I, the domestic national industry achieved a rather rapid development, most of them were small-sized enterprises of textile and food, except several rather large-scale enterprises such as Shanghai Cement Ltd., Co., Taishan Brick and Tile Factory, etc..

Under the twofold oppression of imperialism and bureaucratic bourgeois, the national industry & commerce had to survive and develop from the adversity. Some enterprises scraped a living and took great pains to keep above water such as the Food Factories of Meilin, Taikang and Guanshenyuan, etc.; relying on all employees of the factory, the patriotic industrial and commercial businessmen of Great China Rubber Factory and Wuzhou Guben Soap & Pharmaceutical Factory persisted in struggling, and frustrated the threat and temptation of foreign businessmen’s vain attempt to monopolize the Chinese market. During this period, the real estate industry in Xuhui District rose again. The French business Jianye Real Estate Co. bought lands and built nearly one hundred buildings along the West Jianguo Road and Yueyang Road, thereafter they built almost three hundred buildings in Jianyeli East, West and Middle Lanes.

In the 26th year of Republic of China, August 13 Songhu Encounter broke out, the whole Chinese territory area were occupied by the enemy, the Leased Territory became the “sanctuary” of merchant princes and despotic gentries from everywhere. A passel of enterprises and institutions, such as China Watch Manufacturing Factory, Jingfu Garment and Sock Weaving Mill and Sino-Belgian Radium Institute, moved into Xuhui District one after another. Some advanced flats, which were the Huaihai Building, Shanghai New Village, Maoling Villa, and Yuyuan etc., were built with new block of lanes, industries of food and beverage, service, entertainment developed correspondingly, and the “isolated island ” of wartime appeared a lopsided prosper vision. While the Chinese territory area was left in a state of despair and devastation, and all business was declined.

In the 34th year of Republic of China, Japan surrendered. The Nationalist Government took over the puppet regime of Wang Jingwei, and established districts according to constablewick. Changshu District (the 7th District), Xujiahui District (the 8th District) and the relevant District Administration Offices were announced to be established within this district. Under the Kuomintang’s reactionary governance entitled in the name of “everything is subordinated to civil war”, educational funds were often largely reduced, progressive books and magazines were strictly prohibited, patriotic democratic personages were suppressed, industrial and commercial enterprises were forced to stop doing business or close down, numbers of wageworkers lost their jobs, prices skyrocketed, and the people of Xuhui District were immersed in abysm of tribulation again. May 24th of that year, the PLA liberated the whole district with the coordinated support of CPC underground organization.

The two districts of Changshu and Xuhui covered an area of 13 sq. kms, with a population of 280,000 when they were liberated. There were about 500 middle and small factories, 3000 middle and small shops, 1800 individual handicraft workshops in the whole district; there were 8 colleges and universities, 127 middle schools and primary schools, 13 scientific research institutes (offices), 3 cinemas and theatres.

After liberation of Shanghai, the newly-born people’s regime first focused on establishing revolutionary order, safeguarding social stability, confiscating bureaucratic capital, establishing state-owned economy, supporting private industry and commerce, recovering and developing production, and breaking down & stabilizing market price. Based on it, many movements were launched successively, such as the War to Resist US Aggression and Aid Korea, Suppression of Counter-Revolutionaries, Prohibition of Gambling, Drug and Prostitute, “Three Anti Campaign”, “Five Anti Campaign” etc., and democratic reforms were carried out in the enterprises and institutes. After the three-year effort, the social order of the whole district tended to stabilization, and the national economy was recovered and developed.

Socialism transformation and the 1st Five-Year Plan of National Economy began to be carried out in 1953.

July 1954, by means of general election, Changshu and Xuhui Districts respectively held the 1st meeting of the 1st People’s Congress. At the same time of enhancing socialistic regime construction, strongly developing production and ensuring supply, we took a series of measures to improve people’s life. During this period, we carried out the Zhaojia Creek Project of Filling the Creek & Constructing the Road, more than 2000 families and 8000 residents in “shanty town above the water” moved to better places. We successively built some workers’ new villages such as the Rihui Village I and Caoxi Village I, etc. The socialistic transformation movement reached the climax in the first moon of 1956. 1126 private factories and 2996 private shops implemented a mechanism of joint public-private operation, and 955 handicraftsmen respectively founded 91 handicrafts cooperatives (teams). On March of that year, Changshu and Xuhui Districts were consolidated into one district--Xuhui District.

From 1956, we adjusted the structure of former industrial enterprises in Xuhui District, rebuilt and newly built a passel of new industrial enterprises needed urgently by nation in the field of instrument, electron, machine, aviation and space etc., and we started to build an electronics industry base in Caohejing area. Meanwhile, we launched generally the labor events with the main contents of increasing production & practicing economy and technology innovations. Therefore, the industry production capacity and product quality were increased notably in factories and enterprises of the whole district. The industrial output value in 1956 reached RMB 0.563 billion Yuan, which was 1.1 times as much as RMB 0.263 billion Yuan in 1952.
From the second half year of 1957, the national economy was out of proportion, supply of the market was tensed up, and the masses lived a difficult life. In 1966, the nationwide “Great Cultural Revolution” broke out. In October 1976, “Great Cultural Revolution” ended.

Since the Third Plenary Session of the Eleventh Central Committee of the Party, the whole district successfully achieved the transformation of focus of work, which kept the economic development as the central task, and then a satisfactory situation appeared again, which was stable in politics and society. The economy was reviving, and the masses’ standard of living improved continuously.

In 1983, the financial revenue of the district first reached RMB 100 millions Yuan. In 1984, two towns of Longhua and Caohejing and the areas of Hongqiao, Tianlin etc. were added to the district from Shanghai County, which made the land area of the district increase several times. At the same year, Shanghai Municipal Government decided to build a microelectronics industrial zone. After several years’ development, with the approval of State Council, it was expanded to Shanghai Caohejing Hi-tech Park. The district government grasped the opportunity, and made a decision of speeding up the pace of third industry, which focused on real estate, commerce, tourist and finance. To the collective industry, we focused on the transformation to technology reform, adjustment of industry structure, and improvement of product quality and scale merit.

In 1988, Shanghai Municipal Government decided to implement a financial administration system in the district level, which was to “appraise and decide revenue and expenditure base, assume responsibility for surpluses or deficits and turn over part of revenue to municipal government, share when the revenue increases with a five-year term”. Enclosing the reform measure, we carried out system for contracted responsibility in the grass roots of the whole district, and this mobilized the initiative of the enterprise and the staff to contribute to the production and management. After three years’ practice, the comprehensive economic strength of the district enhanced notably. Comparing with the revenue of 1980, the financial revenue of the district in 1990 increased 2.61 times, and reached RMB 0.334 billion Yuan; financial expenditure increased 4.9 times, and reached RMB 0.134 billion Yuan; total value of industrial output of the district reached RMB 0.455 billion Yuan, thereinto industrial enterprises affiliated with Collective Enterprise Administration Bureau yielded RMB 0.245 billion Yuan, and it was 4.47 times as much as RMB 44.95 million Yuan of street industrial production value in 1980; district commercial sales increased 2.4 times, and reached RMB 1.759 billion Yuan; commercial housing sales volume reached 47,600 sq. ms., sales income of RMB 73.24 million Yuan, earned foreign exchange of $ 2,170,000. This created a rather ample condition for adding investment of education, municipal administration and “shopping-basket project”. Meanwhile, with the help of implementation of city-level key construction projects, such as the Subway Line I, cloverleaf junction of north Caoxi Road, and viaduct loop line of West Zhongshan Road etc., we widened and built 53 roads, and refit roads of 120,000 sq. ms.. Under the guidance of building houses with joint investment among state, local and enterprise, we speeded up the pace of old town transformation and residence construction. During 14-year from 1977 to 1990, we had built 7 new residential areas, 47 new residential villages, 67 high-rise residences, and other new workshops, with the total construction area of 3,777,400 sq. ms., which was 2.46 times as much as 1,533,400 sq. ms. of total construction area in the 28 years after liberation. In addition, forty–odd shanty dwellers and simple houses were transformed. Families with residential difficulties, whose housing space were below 3 sq. ms. per capita, were settled well to be increased to 7.3 sq. ms.. per capita. Annual average level of consumption of the residences increased from RMB 623 Yuan in 1980 to RMB 2,128 Yuan in 1990 with the annual average increased 5.5%.

Since 1991, the whole district speeded up the pace of reform and opening, regional economy achieved sustaining, rapid and healthy development, the appearance of city zone changed a lot, and every social enterprise achieved new development. In 1995, the gross domestic product of the district reached RMB 2.284 billion Yuan, which was 1.86 times as much as RMB 0.797 billion Yuan in 1992. Financial revenue is about RMB 1.067 billion Yuan, which was 2.19 times as much as RMB 0.334 billion Yuan in 1990. Total value of industrial output of the district reached RMB 3.369 billion Yuan, which was 6.4 times as much as RMB 0.455 billion Yuan in 1990. What has made the district appearance change a lot are the completion of the first phase project of Xujiahui Shopping Mall and the triphibious traffic such as subway, where the Xujiahui Plaza was the center. The area of network of commercial establishments extended 10 times, business sales of the district commerce increased from RMB 1.759 billion Yuan in 1990 to RMB 9.492 billion Yuan. The status of industry and commerce, which were affiliated with Xuhui District, in Shanghai City Key Proper were upgraded to the first place and the third place respectively. Non-state-run technology enterprises developed rapidly, their scale merits were head of Shanghai City. We approved to establish 316 foreign investment enterprises, and the foreign investment volume absorbed by agreement was about $1.034 billion; we internally linked 922 enterprises, committed other places investment volume RMB 0.844 billion Yuan. In 1995 the completed housing space was about 1,332,000 sq. ms., which was 1.3 times as much as 1990. The approved leased lands added up to 38 breadths, with a land area of 34.01 hectares, the revenue of land lease approval was $ 0.861 billion, therefore it speeded up the pace of transformation of old-town. We transformed 65.16 hectares in five years, 24,000 families moved to better new places from simple houses. The Rihui Port has been transformed completely after comprehensive repair, the newly-built East Rihui Road linked up the north and south. Xupu Bridge emerged an early appearance across two banks of Huangpu River. The educational fund increased notably, the investment added up to RMB 0.5 billion Yuan, 12 new middle schools were built. The quality of environment was improved continuously, and Xuhui District achieved a title of “Model District of Creating National Hygienic District in Shanghai”, with an excellent grade in the campaign of Creating National Hygienic District.

In 2003, we yielded regional added value RMB 7.574 billion Yuan, which achieved a 14.35% increase compared with last year. Thereinto, the regional added value of the secondary industry was RMB 1.511 billion Yuan, and the added value of the third industry was RMB 6.063 billion Yuan. The structural proportion between the secondary industry and the tertiary was 19.95: 80.05. The role of pillar for commerce and real estate industry was still notable, commercial added value was RMB 1.995 billion Yuan, real estate added value was RMB 1.151 billion Yuan, which occupied 26.34% and 15.20% of the total regional added value respectively.