Shanghai will adhere to the direction of intelligence and integration, strengthening and expanding its traditional advantageous industries to create a "second growth curve" that drives future development during the 15th Five-Year Plan period (2026-30), said Mayor Gong Zheng.

He made the remarks during the ongoing annual sessions of the city's legislative and political advisory bodies.

Lawmakers and political advisers in the city attributed Shanghai's "first growth curve" to its traditional advantageous industries and mature pillar industries, which have established scale advantages and core competitiveness. Such industries are the foundation that supports Shanghai's stable economic operation and development.

The "second growth curve" aims to foster new growth momentum by deeply integrating technological and industrial innovation into the groundwork laid by the first growth curve. This approach seeks to transition from consolidating the existing foundation to exploring new opportunities for expansion, they said.

"Shanghai (seeks) to establish itself as the main hub for developing new productive forces over the next five years. One focus is on promoting the transformation and industrialization of scientific and technological achievements, enabling smarter, greener, and more integrated empowerment of the manufacturing industry's transformation and upgrading," said Gong.

The Shanghai government work report delivered during the sessions outlined strategies for driving industrial upgrades through technological innovation. Key initiatives include implementing the "AI+" action plan, enhancing infrastructure for computing power, industry-specific data, and vertical models, and promoting the widespread application of new-generation smart terminals and systems. One goal is to establish more than 50 advanced smart factories.

Zou Jixin, a political adviser in Shanghai and senior executive at the State-owned China Baowu Steel Group Corp, suggested enhancing the digitalization of steel enterprises and creating demonstration projects to leverage the impact of digital transformation on global supply chains.

"Furthermore, it is essential to drive the construction of a digital R&D base built on industry databases and large knowledge models, creating an AI-driven digital R&D platform with dual engines of data and knowledge, along with demonstrative applications," he said.

Some lawmakers mentioned that the digital transformation of traditional manufacturing is directly linked to the construction of a modern industrial system and the development of new productive forces.

Research conducted by political adviser Sun Lixing, found that many small and medium-sized enterprises in Shanghai lack awareness in digital investment and its application. As a result they face challenges such as: insufficient understanding leading to a reluctance to change, weak technical capabilities preventing modification, and financial constraints which discourage transformation.

"I suggest nurturing a group of leading enterprises with industry influence to shift from self-transformation to empowering the whole industry chain. Also, it is important to provide cost-sharing and financial support for the digital transformation of SMEs," said Sun, who is also a researcher at the Shanghai Academy of Social Sciences' Institute of World Economy.

A draft of the city's 15th Five-Year Plan, currently under review by legislators and political advisers, also proposes that Shanghai focus on basic research and tackling key core technologies, and intensify efforts to promote original and disruptive technological innovations.

Dai Minmin, a political adviser and president of Shanghai State-owned Capital Investment Co, highlighted the potential of "AI for science", or AI4S, which is emerging as a new engine for solving major scientific challenges and breaking through key core technologies, to revolutionize scientific paradigms and drive industrial iteration.

"I suggest the city create a comprehensive closed loop integrating computing power, data, scientific instruments, automated labs, large models, intelligent systems, application scenarios, as well as regulation and verification mechanisms. I also advocate for a high-quality public platform for scientific data, promoting the orderly opening and sharing of scientific data," he said.

Some lawmakers from the biotech sector stressed the need for breakthroughs in foundational technologies within the industry, suggesting expanding the technological support of large scientific facilities for AI drug screening and supporting domestic AI pharmaceutical software.

Legislator Ji Xinhua, who is also chairman and CEO of UCloud, a foundational cloud computing platform for startup firms, said,"We clearly observed a shift from business model innovation to technological innovation among startups in Shanghai in recent years, with industries like nanotechnology, AI, quantum computing, and commercial space flourishing."