Zipping from the airport to downtown Shanghai on the world’s fastest maglev train seems a most appropriate way to enter China’s largest, hippest and fastest-growing megacity. Once a backwater fishing village and seaport at the mouth of the Yangtze River, Shanghai rose to prominence through the 19th century after the first Opium War. Today it’s the country’s financial capital and most open city. This showpiece of China’s booming economic prosperity boasts offices for 491 of the world’s Fortune 500 companies. China’s former leader, Deng Xiaoping, summed up Shanghai’s success by saying, “If China is a dragon, then Shanghai is its head.”

The Shanghai Maglev Train © Michael DeFreitas

With its modern skyline, pulsating neon lights, huge LCD screens, yellow cabs and “business, business, business” motto, Shanghai feels more like New York City. Shanghai’s population of about 24 million now surpasses the entire population of nearby Taiwan and attracts about 8.5 million inbound visitors annually. City planners are so bullish on visitor traffic they reportedly have 8,560 hotel rooms under construction. And as an added bonus, new 4G networks now cover the entire city center, providing fast access for 39 percent of the city’s population and visitors.

And the city isn’t holding back, either. China Daily recently hailed Shanghai’s four-square-mile Waigaoqiao Free Trade Zone in northeastern Pudong as “the brainchild of Premier Li Keqiang.” Opened with much fanfare in September 2013, the FTZ will serve as a laboratory for liberalizing the national economy through a system of eased trade, investment and monetary rules. The zone is China’s newest testing ground for free-market policies that Premier Li in the world’s second-largest economy.

On opening day, the government approved 36 new enterprise applications, including 11 foreign companies. To date, about 1,400 companies registered in the zone, including Bonn-based DHL, the world’s largest logistics company. With annual air cargo volume at Pudong International Airport expected to reach 6 to 7 million tons by 2015, DHL stands to be a major player. “Shanghai has the potential to become Asia’s major international hub for cargo transport because it is better positioned than Hong Kong and Singapore, in terms of being a shorter distance to Europe and the United States,” said DHL Pudong manager Qian Xiaorong.

However, the FTZ isn’t the only game in town. Shanghai’s success lies in its ability to keep reinventing itself, especially with investments incorporating livability. One of the latest projects is the new multi-use Green Valley development on the former World Expo site. When completed in 2015, it will provide a mix of offices, retail units and social venues. With its cutting-edge, environmentally friendly design of green hanging gardens and cavernous atria providing maximum natural light, the project aims to appeal not only to those working in the area but also other Shanghai residents and visitors.

Dixon Lu, chief commercial officer, Asia Region, Schmidt Hammer Lassen Architects, in charge of the project, commented, “When the World Expo was being held here, this site attracted attention from the whole world. The client doesn’t want to just build a bunch of towers and act like it wasn’t there before. Especially with the China Pavilion — we don’t want to overshadow that. Instead of high-rises, we’ve planned a valley that creates a sense of openness, because the concept is to attract all people.”

Sculpture in The Bund financial district © Michael DeFreitas

In keeping with the theme to attract new investment and improve the city’s livability, the 11-square-acre government-supported Hongqiao Central Business District, or HCBD, will feature sustainable building practices such as shaded spaces, natural ventilation, rainwater collection, permeable road surfaces, links to public transport and a reduction in the urban heat island effect. Nine office towers will have green roofs growing indigenous plant species, and the flower-shaped building will offer a sky garden and a continuous jogging path.

The HCBD’s large-scale exhibition facility will surpass the Hannover, Germany, conference and exhibition center as the world’s largest, and analysts expect the district’s location at the center of the transportation network of the Yangtze River Delta to attract automotive, logistics and commercial-trading firms. Expected completion is early 2015.

But Shanghai is also working hard to shed its “all work and no play” reputation. The new Disney Resort continues on track to open at the end of 2015. The resort will include Shanghai Disneyland; two themed hotels; 500,000 square feet of retail, dining and entertainment venues; recreational facilities; a lake; and associated parking and transportation hubs. Shanghai Disneyland, the only Disney Park to serve Pepsi, will boast the largest and tallest Cinderella Castle in the world.

The Chinese government views Shanghai’s success as a formula for the rest of Mainland China, but the city’s success has come with some growing pains, such as skyrocketing commercial real estate values, affordable housing shortages and smog. City planners hope to achieve a more comfortable balance between expansion and quality of life in a city that’s expected to reach 30 million by 2030.

Things to Do in Shanghai

Shanghai bristles with fabulous buildings, but it doesn’t boast the typical must-see sights like New York or Rome. As far as big cities go, it’s overwhelmingly impressive, yet all that sleekness tends to overshadow its cultural roots. For that, you’ll have to get down to street level to discover the city’s more traditional distractions.

People relaxing in Wisteria Lane, Fuxing Park © Pixattitude | Dreamstime.com

Unlike many Chinese cities, Shanghai is ideal for exploring on foot. In Fuxing Park in the center of the colonial-era French Concession, you’ll find elderly Chinese ladies in traditional silk dresses singing opera below the shady sycamore trees, and gray-suited men with their caged birds. Nearby, on Xiangshan Road, Sun Yat-sen’s former home with its period furnishings provides a peek into the early days of the city.

Shanghai’s old culture comes alive in Chenghuang Miao, or the City God Temple, within the old walled part of the city. The temple offers a quiet cultural oasis amid all the bustle, steel and glass. Surrounding the temple complex lie hundreds of century-old shops selling everything from herbal medicines to jade figurines. A plethora of restaurants serve up ample portions of the city’s more traditional cuisine including the perennial Shanghai favorite, xiao long bao, or steamed soup dumplings — to Shanghai what chicken wings are to Buffalo, N.Y. The popular and convenient Lu Bo Lang restaurant near the complex’s koi pond has hosted many world leaders, such as the Clintons and Fidel Castro, and serves up some of the best dumplings in town.

Another example of a unique juxtaposition of traditional and new is The Bund, the city’s famous waterfront district on the west bank of the Huangpu River. Standing near the railings of the flood-control wall nicknamed “Lovers’ Wall,” you’ll marvel at the contrasts between the century-old architecture lining the promenade and the futuristic Oriental Pearl TV Tower dominating the modern Pudong skyline across the river. The promenade is also the spot where hundreds of residents armed with silk fans, fighting sticks and swords congregate each morning to perform their compelling tai chi exercises.

For a more in-depth look into China’s early years, the must-see Shanghai Museum in the People’s Square houses what many historians consider the country’s best collection of art (more than a million pieces) dating back to the Neolithic period (between 10,000 and 2000 B.C.). It would take a couple of weeks to cover all the exhibits, so pick your favorite era or two and get started. The ancient porcelain and bronze galleries are outstanding.

Dubbed the Venice of the East, nearby Zhouzhuang is one of those small Yangtze River Delta towns that have bent with the winds of change but haven’t broken with traditional ways. The old town, with its canals, Chinese gondolas and narrow cobbled streets, dates to the 14th century and exudes a sense of what Shanghai may have looked like centuries ago.

The water village Zhouzhuang in Jiangsu © Rodho | Dreamstime.com

CHECKING IN WITH AI BAOJUN

Vice Mayor, Shanghai, and Director, Free Trade Zone Management Committee

Many thought the Free Trade Zone’s 2013 negative (“not allowed”) list was too large and too rushed. What is the status of the list moving forward?
The negative list is an important institutional innovation for the FTZ, playing a key role in the reform of the investment management system and the alteration of government functions. When making the negative list for 2014, we will give more consideration to what events can be handled by the market subjects themselves.

We hope the list can provide more space for market subjects, so we detail the list to small categories. Currently we have 20 broad categories of our national economy. Taking out social and international organizations, we have 18 left. In the 18 broad categories, we have 89 big categories, 419 middle categories and 1,069 small categories. The 2013 negative list has 190 management measures on the small categories, and we hope to have fewer in the 2014 version. We are collecting opinions for our 2014 list, especially from market subjects and industrial associations. We will probably refer to the categories of other countries and reduce the management measures.

Many financial investors have concerns over the length of the negative list as it relates to financial transactions. When will the FTZ publish details of the new financial regulations?
We know people complain that the negative list is too long and not open enough, so as our work progresses, we will shorten the list. Compiling a negative list is new to us and a learning process. Shanghai is at an important period in transformation, an ascent, and we need to deepen reforms and innovate the administrative system to overcome the shortfalls in Shanghai’s soft power. Financial reform has four aspects: making the RMB convertible under capital accounts, liberalizing interest rates, using RMB for cross-border settlement and reforming the foreign exchange management system. Financial management is a complex task and relies on a large amount of data. We are analyzing all the data, assessing the financial risks and developing a risk-control system. We will introduce our official decisions after completing all the tests.

Shanghai Info to Go

About 27 miles from the city center, Pudong International Airport is Shanghai’s main international gateway. Most arrivals opt for the high-speed Maglev Airport Express Train ($8, eight minutes) to the downtown Longyang Road metro station. From there, connect to hotels in most areas of greater Shanghai using the metro (50 cents) or taxis ($8–10). Other airport transport options include the No. 2 metro line ($3, 60 minutes), the Airport Shuttle Bus ($4, 90 minutes) or taxis ($40–50). Hongqiao Airport, about eight miles from downtown, handles mostly domestic and a few international flights. Connect to downtown via metro lines 2 and 10 ($2, 60 minutes) or taxi ($30–40, 30–60 minutes). Traffic in Shanghai can be almost unbearable at times, so it’s best to use the metro.

Shanghai: Just the Facts

Time Zone: GMT +8
Phone Code: Country code: 86 City code: 21
Entry/Exit Requirements: U.S. citizens must have a passport valid for at least six months, with at least two blank pages, and acquire a visa before entry through specialized travel agencies or the nearest Chinese consulate.
Currency: Chinese yuan renminbi
Official Language: Chinese, mostly Mandarin. English is spoken in business and tourist services. English is now taught in all schools.
Key Industries: Retail/wholesale, financial services, real estate, communication and information technology, automobile manufacturing

Where to Stay in Shanghai

Fairmont Peace Hotel Situated at The Bund promenade, the recently renovated 39 suites and 231 guestrooms of this legendary Art Deco masterpiece feature opulent furnishings, modern amenities and spectacular views of downtown Pudong. 20 Nanjing Road E., Huangpu $$$$

Grand Hyatt Shanghai This Jin Mao Tower hotel, located in the heart of Pudong and the Lujiazui business district, provides an unforgettable 5-star luxury experience. It features 45 suites and 515 guestrooms. Jin Mao Tower, 88 Century Ave., Pudong $$$$

The Westin Bund Center, Shanghai With its iconic, crown-topped design, this beautiful 570-room hotel sits on The Bund waterfront convenient to luxurious shopping centers, celebrated restaurants, local attractions and major business districts. 88 Henan Central Road, Huangpu $$$$

Restaurants in Shanghai

Gongdelin Vegetarian Restaurant One of the first vegetarian eateries in Shanghai and rated one of China’s best vegetarian restaurants, Gongdelin serves traditional Buddhist dishes and its famous “mock meat” cuisine. 445 W. Nanjing Road $$$$

Mercato The relaxed rustic-chic interior from designers Neri & Hu complements the Italian creations by New York chef Jean-Georges Vongerichten. Try the broccolini, spicy salami and ricotta pizza, or lobster ravioli. 6F, Three on the Bund, 3 Zhongshan Dong Yi Lu, Huangpu $$$–$$$$

Vue Restaurant Enjoy classic European delicacies like lobster bisque and steak tartar prepared by Austrian chef Dieter Stamminger, with an outstanding 270-degree view of Pudong and Huangpu from the 30th floor. Hyatt on the Bund, 199 Huangpu Road, Hongkou $$$–$$$$

Read more about Shanghai’s maglev train.