VZCZCXRO7618
RR RUEHCN RUEHGH
DE RUEHGH #0411/01 2730642
ZNR UUUUU ZZH
R 300642Z SEP 09
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 8312
INFO RUEHBJ/AMEMBASSY BEIJING 3098
RUEHCN/AMCONSUL CHENGDU 2229
RUEHGZ/AMCONSUL GUANGZHOU 0686
RUEHHK/AMCONSUL HONG KONG 2393
RUEHSH/AMCONSUL SHENYANG 2220
RUEHIN/AIT TAIPEI 2024
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 8964

UNCLAS SECTION 01 OF 05 SHANGHAI 000411 
 
SENSITIVE 
SIPDIS 
 
STATE ALSO FOR S/GPI/BALDERSTON, AMB BAGLEY 
STATE ALSO FOR EAP/PD - STOLTZ, GALT 
STATE ALSO FOR OES/STC 
TREASURY FOR OASIA - DOHNER, WINSHIP 
NSC FOR BUSBY 
 
E.O. 12958: N/A 
TAGS: PGOV ECON ETRD EINV EFIN KPAO SOCI TPHY CH
SUBJECT: 60TH ANNIVERSARY CELEBRATIONS BALANCE LOCAL ACCOMPLISHMENTS 
WITH NATIONAL UNITY 
 
REF: A. (A) SHANGHAI 340 
     ¶B. (B) SHANGHAI 267 
     ¶C. (C) SHANGHAI 24 AND PREVIOUS 
     ¶D. (D) SHANGHAI 275 
     ¶E. (E) SHANGHAI 191 
     ¶F. (F) SHANGHAI 380 
 
(U) Sensitive but unclassified.  Not for dissemination outside 
USG channels; not for Internet distribution. 
 
 
 
SUMMARY 
 
------- 
 
 
 
¶1. (SBU) As Shanghai prepares to celebrate the 60th anniversary 
of the establishment of the People's Republic of China on 
October 1, municipal government officials and the state-run 
media have attempted to balance local pride with national unity. 
 In public statements and newspaper articles, Shanghai officials 
offer the city as modern and technologically advanced but also 
nationalistic and firmly under the Communist Party's leadership. 
 Recent visits to other cities in the Consular District 
demonstrate a similar effort by local government officials to 
feature their local accomplishments while punching their 
national credentials as October 1 approaches.  End Summary. 
 
 
 
SINGING SHANGHAI'S PRAISES ON THE 60TH ANNIVERSARY 
 
--------------------------------------------- ----- 
 
 
 
¶2. (SBU) From the rising pavilions at the 2010 World Expo site 
on both sides of the Huangpu River to gleaming skyscrapers in 
Pudong's glitzy Lujiazui Financial District to refurbished 
neighborhoods around Xintiandi to the high-end shops along 
Nanjing Road to some of China's best universities, Shanghai 
projects China as sleek, modern, and high-tech.  As Shanghai 
prepares to observe the 60th anniversary of the establishment of 
the People's Republic of China, the municipal government has 
done its part to demonstrate national unity, staging 
opportunities for government officials to speak -- and sing -- 
with patriotic fervor.  At Pudong Yuanshen Stadium on September 
27, Party Secretary Yu Zhengsheng, Mayor Han Zheng, Municipal 
People's Congress Chairman Liu Yungeng, and Shanghai CPPCC 
Chairman Feng Guoqin were among those raising their voices in 
song in praise of the nation, the Party, and the need to "work 
hard for the people." 
 
 
 
EXPO 2010: SHANGHAI TAKES ITS PLACE ON THE WORLD STAGE 
 
--------------------------------------------- --------- 
 
 
 
¶3. (SBU) Shanghai has much to sing about.  Despite initial 
pessimism about the impact of the global economic downturn on 
the city and concern about a low GDP growth rate during the 
first quarter of the year at 3.1 percent, the city's economy 
bounced back to grow by 7.9 percent in the second quarter, and 
Shanghai now is looking forward to hosting the biggest World's 
Fair ever in 2010 (Ref A).  The Shanghai 2010 World Expo, due to 
open on May 1 with 192 countries participating, is expecting 70 
million visitors.  Shanghai's municipal government has budgeted 
$4.2 billion for the six-month event (nearly twice the $2.3 
billion budget for the 2008 Beijing Olympics), including $2.6 
billion for infrastructure and $1.6 billion for Expo operations. 
 Shanghai's 60th anniversary celebrations, therefore, will 
highlight the upcoming Expo.  Yet more "Haibao" (the 2010 World 
 
SHANGHAI 00000411  002 OF 005 
 
 
Expo's mascot) statues popped up around town in recent weeks -- 
just in time to celebrate the nation's 60th birthday. 
 
 
 
INNOVATIVE SOLUTIONS: CITY'S CONTRIBUTIONS TO SCIENCE 
 
--------------------------------------------- -------- 
 
 
 
¶4. (SBU) In line with the 2010 World Expo's theme of "Better 
City, Better Life," the local media's focus on the upcoming 60th 
anniversary has featured Shanghai's contributions to China's 
scientific and technological developments.  The Wenhui Bao, a 
local Party-controlled daily newspaper, published a series of 
articles in September highlighting innovation, featuring 
projects such as the Dongtai Wind Farm near Yangshan Deep Water 
Port.  The Shanghai Science and Technology Museum opened a "60th 
anniversary science and technology" exhibit on September 23, 
which will run until October 15.  In the period prior to October 
1, local newspapers also reported on the progress of the 
Hongqiao Transportation Hub -- Shanghai's largest infrastructure 
project (Ref B).  Located in the western suburbs of Shanghai, 
the hub will integrate the new terminal of the Shanghai Hongqiao 
International Airport, a high speed railway connecting Shanghai 
to Beijing, inter-city shuttle trains, five subway lines, four 
highways, and an extensive bus network. 
 
 
 
REITERATING THE "FOUR LEADS" AND THE "FOUR CENTERS" 
 
--------------------------------------------- ------ 
 
 
 
¶5. (SBU) The October 1 National Day holiday and the 60th 
anniversary celebrations also have given the Shanghai Municipal 
Government another opportunity to publicly to stake its claim as 
a city of international importance.  The "four leads" -- 
transforming Shanghai's economic growth model, enhancing 
independent innovation, advancing reform and opening up, and 
building a "socialist harmonious society" -- remain government 
priorities; likewise, government officials emphasize the 
importance of establishing Shanghai as an international 
economic, financial, trade, and shipping center, collectively 
known as the "four centers" (Ref C). 
 
 
 
¶6. (SBU) During a speech commemorating the 60th anniversary of 
the Chinese People's Political Consultative Conference (CPPCC), 
Shanghai Party Secretary Yu Zhengsheng took the opportunity at 
the beginning of his remarks at the Shanghai CPPCC to call on 
government officials "to make greater contributions towards 
accelerating Shanghai's realization of the four leads and the 
establishment of the four centers."  On September 29, Mayor Han 
Zheng again focused on the "four leads and four centers," 
closing his address to the assembled diplomatic corps by saying, 
"Let's speed up our work towards realizing the "four leads" 
vision and turning Shanghai into an international economic, 
financial, trade and shipping center, and let's make new 
contributions to our great motherland."  (Note: Shanghai's goal 
of building "four centers" requires a State Council endorsement, 
but to date, the Central Government has endorsed only the 
finance and shipping centers.  Septel to follow.  End note.) 
 
 
 
"CITY OF IMMIGRANTS" MONIKER FITS AGAIN 
 
--------------------------------------- 
 
 
 
 
SHANGHAI 00000411  003 OF 005 
 
 
¶7. (SBU) Shanghai, traditionally known as a "city of 
immigrants," remains dependent on the successful elevation of 
its international standing in order to continue to attract 
talent from within China and from overseas to drive the nation's 
economy.  Contributing approximately 14 percent of the Central 
Government's fiscal revenue, Shanghai largely relies on more 
than 150,000 expatriates, as well as several million Chinese 
workers from outside Shanghai, to power economic growth. 
 
 
 
¶8. (SBU) Not long ago, however, Shanghai faced the prospects of 
having a not-so-happy story to tell by October, as the effects 
of the global financial crisis appeared to be causing many of 
the city's expatriates to return home earlier this year, leaving 
the "New York of China" just ahead of the 60th anniversary and 
the 2010 World Expo (Ref D).  Reports in recent weeks suggest 
that while Shanghai still faces significant economic challenges, 
its economy has surged enough to stem the outflow of 
white-collar workers, though, and the number of expatriates in 
Shanghai appears to have stabilized.  In fact, Shanghai has used 
the financial crisis as an opportunity to attract financial 
professionals from foreign countries as well as induced talented 
Chinese to return home (Ref E).  Blue-collar workers also appear 
to be returning, and a local labor expert told PolOff in early 
September that most Chinese migrants who had left the city 
during the economic downturn have come back. 
 
 
 
EDUCATE TO ELEVATE: FOCUS ON STUDENTS 
 
------------------------------------- 
 
 
 
¶9. (SBU) At the same time Shanghai is wooing outsiders to work 
in the city, the municipal government also placed a greater 
emphasis on taking care of its home-grown talent pool in 2009. 
Mayor Han Zheng called finding jobs for university graduates a 
"top priority" during his Work Report speech in January (Ref C), 
a theme echoed by other city leaders.  Anecdotally, this year's 
graduates appeared to have done well with some universities 
boasting as many as 80 or 90 percent of their graduates quickly 
found jobs in their fields.  Consulate contacts comment that 
Shanghai's strong educational system gives it a competitive edge 
over other Chinese cities with aspirations to provide 
international financial and commercial services (septel to 
follow).  Municipal government leaders also have focused 
increasing attention on primary and secondary schools as 
evidenced by the number of high-level visits to local schools. 
Party Secretary Yu and other leaders in recent weeks have 
visited schools for ethnic minorities and/or migrant children, 
drawing attention to municipal government efforts to improve the 
education level for the city's least fortunate. 
 
 
 
PLAYING SECOND FIDDLE IN NATIONAL CONCERTO 
 
------------------------------------------ 
 
 
 
¶10. (SBU) Despite the city's proud boosterism, officials seem to 
acknowledge that the 60th anniversary of the PRC's 
establishment, although a national event, is primarily a Beijing 
celebration.  Shanghai's fireworks and light shows on October 1 
will be in the evening, apparently timed to allow Shanghai 
residents to watch the National Day parade in Beijing on 
television in the morning.  Seeking to remind residents of the 
national significance of the 60th anniversary, local 
neighborhood committees have directed Chinese flags to be placed 
in store fronts. 
 
 
 
SHANGHAI 00000411  004 OF 005 
 
 
 
¶11. (SBU) In public statements and newspaper articles, municipal 
government officials continue to balance lauding Shanghai's 
success as China's "economic center" while deferring to the 
"political capital" in Beijing.  With memories of the 2006 Chen 
Liangyu scandal still fresh (Ref F), local officials have been 
careful to manage the Beijing-Shanghai rivalry in the run-up to 
the October 1 holiday.  Local newspaper headlines on September 
29 highlighted Party Secretary Yu Zhengsheng's promotion of 
"clean government" in line with the "decision" of the 17th CCP 
Central Committee Plenum, which met in Beijing the previous 
week.  Consulate contacts have commented in recent weeks that 
Party Secretary Yu is more adept at managing the relationship 
with Beijing than the disgraced Chen. 
 
 
 
HISTORIC TIES IN HUAI'AN 
 
------------------------ 
 
 
 
¶12. (SBU) The local-national balancing act is repeated in other 
East China cities, which similarly have featured their local 
accomplishments while punching their national credentials as 
October 1 approaches.  Huai'an, a city of 5.4 million people in 
northern Jiangsu Province, launched its pre-October 1 
festivities on September 28 with the joint opening of the 8th 
Huaiyang Food Festival and 4th Huai'an Cross-Strait Economic 
Forum.  In order to boost the city's international credentials, 
the Huai'an Foreign Affairs Office invited Ukraine's Ambassador 
to China, members of the Shanghai Consular Corps, and several 
Japanese representatives to the festival.  During a meeting with 
diplomats on September 27, Huai'an Municipal Communist Party 
Secretary Liu Yongzhong highlighted the city's recent economic 
achievements, specifically a rapid GDP growth rate that hit 13.6 
percent in the first half of the year (reportedly the highest in 
Jiangsu Province during the period) -- a figure Liu attributed 
to a recent influx of Taiwan investment during a separate 
conversation with PolOff.  Further emphasizing the city's 
economic achievements, city officials organized a windshield 
tour of the 132-square kilometer development zone for festival 
participants, particularly pointing out the sizable Taiwan firm 
Foxconn's television screen factory. 
 
 
 
¶13. (SBU) As the hometown of former Chinese premier Zhou Enlai, 
Huai'an boasts historic links to the establishment of the PRC in 
¶1949.  Party Secretary Liu officially opened the festival not 
far from Zhou Enlai's former residence where red banners 
exhorted citizens to "earnestly study Zhou Enlai's brilliance to 
establish a prosperous Huai'an."  Liu emphasized that Huai'an, 
as Zhou's hometown, should be especially focused on the CCP 
Central Committee's objective of "people-oriented development." 
 
 
 
SUZHOU CELEBRATING 60TH WITH A BANG 
 
----------------------------------- 
 
 
 
¶14. (SBU) Suzhou Vice Mayor Zhou Weiqiang told members of the 
Shanghai Consular Corps attending his city's September 25 
reception in honor of the October 1 National Day that there 
would be sixty-two separate celebratory events throughout 
Suzhou's districts and counties on October 1.  There would not 
be a parade in Suzhou, Zhou said, but the holiday would feature 
such activities as singing competitions, athletic events, and 
fireworks displays.  An official at the Suzhou Foreign Affairs 
Office added that in the days leading up to the October 1 
celebrations, local cadres also are studying the Plenum 
decision, telling the Deputy Principal Officer "the people are 
 
SHANGHAI 00000411  005 OF 005 
 
 
well acquainted with the Plenum's views on Party-building," and 
the Party is working in "complete transparency" to make those 
goals a reality.  And calling attention to Suzhou's 
contributions to the founding of the PRC, the September 25 
reception featured the presence of three elderly military heroes 
who had fought in the revolution. 
 
 
 
COMMENT 
 
------- 
 
 
 
¶15. (SBU) Shanghai's observance of the October 1 National Day 
holiday will be more subdued than the military parade in 
Beijing, but the city's celebrations -- lights, fireworks, and 
political speeches -- will attempt to make their own mark in 
China's economic and financial center.  With the Shanghai 2010 
World Expo around the corner, municipal government officials are 
touting Shanghai's accomplishments while being careful not to 
antagonize Beijing.  Media circles report that the national 
propaganda will increase the scale of its World Expo publicity 
efforts after the National Day celebrations are completed.  City 
leaders will remain cautious, however, to avoid saying or doing 
anything to upset Beijing, particularly as they work closely 
with the Central Government to stage a successful Expo.  As 
China celebrates its 60th anniversary, local officials also are 
keeping a close eye on the economic recovery, hoping the 
situation will continue to improve and empower Shanghai's drive 
to create jobs and attract new talent. 
CAMP