(Yicai) Oct. 23 -- Strategic emerging industries constituted just over 44 percent of Shanghai's industrial output in the first three quarters of the year, showing that the transition to new growth drivers is already bearing fruit.

"This is a very important figure," Shen Kaiyan, director of the Institute of Economics at the Shanghai Academy of Social Sciences, told Yicai. The three leading strategic emerging sectors -- artificial intelligence, integrated circuits, and biomedicine -- have become pivotal to Shanghai’s economic stability and growth, he said.

The city’s strategic emerging industries saw output climb 7.3 percent in the nine months ended Sept. 30 from a year earlier, according to data released by the local bureau of statistics yesterday.

The data “not only reflects Shanghai's resilience as China's economic engine but also showcases the city's leadership in economic structural transformation and upgrading," said Shen.

The three biggest strategic emerging industries saw output jump 8.5 percent, with AI, chips, and biomedicine increasing 12.8 percent, 11.3 percent, and 3.6 percent, respectively. Their exports surged by more than 10 percent to CNY193.7 billion (USD27.2 billion).

Since the start of the 14th Five-Year Plan period in 2021, the big three have outpaced Shanghai's overall growth in industrial output because of the city’s early strategic planning, Shen noted.

Shanghai-based biopharma companies secured approval for 30 Class I innovative drugs and 45 Class III innovative medical devices for domestic use since the start of 2021 to Sept. 30, leading the nation in medicine and device innovation.

Shanghai’s science and technology commission recently said it expects the city’s biopharma industry to be worth more than CNY1 trillion (USD140.4 billion) this year.

The development of Shanghai's AI industry is even more forward-looking. The city has nurtured 254 municipal-level advanced smart factories and 12 national-level exemplary smart plants, which are driving the transformation of manufacturing and promoting ‘AI + manufacturing’ applications.

Moreover, the city’s new policy to expand AI uses introduced in July further reduces computing power costs, thereby bolstering industrial development.

The industrial output of Shanghai's new energy, next-generation information technology, and high-end equipment industries rose 20 percent, 11 percent, and 10 percent, respectively, in the first nine months.

Meanwhile, the new energy vehicle, lithium battery, and solar cell industries maintained exports above CNY100 billion, a 6.3 percent gain.

Profits at Shanghai's industrial enterprises rose more than 16 percent in the first eight months of the year, with a profit margin of 6.3 percent.

As of Sept. 30, the city boasted 306,000 valid invention patents, a nearly 13 percent increase from a year earlier, as the pace of innovation translated into industrial competitiveness.

In fostering future industries, Shanghai aims to nurture 20 ecosystem-leading enterprises by 2027 and nurture several strategic emerging industries by 2030, positioning itself as a global pacesetter.

Editor: Futura Costaglione