I. URBAN DEVELOPMENT AND ENVIRONMENTAL PROBLEMS

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C. Heavy industrialization: the changes of city functions

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1. Construction of heavy industry system

Figure 3. Ratio of light industry vs. heavy industry in Shanghai

(Black represents heavy industry)

From 1949 to 1952 China's national economy began to restore itself and life and production started to be normal again. In 1952 the gross industrial value of Shanghai totaled 6.806 billion yuan and transformation began of privately owned industrial and commercial enterprises. These enterprises had been nationalized until 1956 and new specialized industrial zones such as Beixinjing, Pengpu, Caohejing and Changqiao were set up in the newer suburbs in order to adapt to industrial removal and building. -

From 1956 to 1965 three actions had been taken to improve Shanghai's industry. More- than 20,000 small enterprises of 1956 were categorized and combined to 4300 of 1960, 470 enterprises were removed and 435 enterprises were closed down. Besides establishing specialized industrial zones in the nearby suburbs, several satellite towns such as Minhang, Wujing, Jiading, An'ting and Wusong were built where new industries, especially heavy industries, were developed. Thus, a rational industrial system was finally formed in Shanghai. In 1965, heavy industry in Shanghai amounted to 43.4 per cent and its industrial system was more complete after the Jinshan Petrochemical Company and Baoshan Iron and Steel Company were built. However, the percentage of heavy industry also became severely overweight by occupying as much as 50 per cent (figure 3). Discordance arose not only between the light and heavy industries, but also between the second and tertiary sectors. Shanghai's industrial structure was disproportional in 1970's with heavy industries dominating all industries and the tertiary sector being limited to the lowest level (figure 4). The once-blooming diversity of Shanghai's urban functions disappeared.

Figure 4. Evolution of industrial structure in Shanghai

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