In order to promote development of the Shanghai equipment manufacture industry and explore geographical advantages of the Lingang New Town from neighboring the international airport and international deep-sea harbor, Shanghai has planned and constructed the Lingang New Town into a Lingang industry zone characterized with equipment manufacture industry.

　　Development and construction of the Lingang New Town is a significant strategic decision concerning Shanghai development trend in the 21st century, made by the Shanghai Committee of the Communist Party and the Government. The Lingang New Town relies on the Yangshan International Deep-Water harbor and is close to the Pudong International Airport. The New Town with developed industries and perfect functional service is a comprehensive seaside city integrating harbor, zone and town, and is also a new ideal space of city development in Shanghai in the 21st century.

　　The Lingang New Town is divided into the New Harbor City and Lingang Industry Area, two functional zones. The New Harbor City is located between southeast estuary of Yangtze River and Hangzhou Gulf, 50 km away from the downtown of Shanghai, with planned area 293 square km. The comprehensive living service zone with the Dishuihu as a center is planned for about 100 km2, where area of concentrated urban constructive land is about 50 km2 and resident population is 500,000 ~ 600,000.

　　The Lingang Industry Area is a functional zone majoring in industry development, with planned area of about 200 square km2, among which urban constructive land is 120 square km2 and the resident population is near 500,000. The Lingang Industry Zone takes modern internationally first-class equipment industry as the main target, and finally shapes a comprehensive industry zone with obvious industrial features and competitive advantages, by means of developing high value added manufacture, hi-tech industries, modern logistics, R&D service, education and training, processing for export, trading home and overseas etc.

　　The Lingang Industry Zone is composed of three main functional zones, namely, the industry zone, modern logistics park zone, ancillary zone to industry zone. The industry zone concentrates on industries of auto, equipment, and logistics, including the magnitude equipment division, medium-sized equipment division and high-tech industry division. The modern industrial logistics zone, conducting as the backbone of the industry zone and the complementary of the Yangshan Deep-water Harbor, is an important part of the Lingang Industry Zone. The ancillary industry zone takes living facilities as its main function, and also includes comprehensive zones for technological R&D, residence and tourism.

　　The first stage of development is divided into three parts, respectively magnitude equipment industry division, high-tech industry division and logistics park division, connected by expressways of two harbors. The industry area is oriented positively at the setup of the magnitude equipment division and construction of its corresponding basic facilities to critically develop auto equipment, shipbuilding mating equipment and large electrical and mechanical equipment etc. The high-tech industry zone will mainly develop urban-type industry and technological R&D industry, while the logistics park zone, which aims at the first stage is to provide logistic services for the Industry Zone and the Yangshan Deep-Water Harbor.

　　It is predicted that total production value of the Shanghai equipment industry in 2007 will reach 1,000 billion yuan, which is about 50% of total industrial production value in Shanghai, and that total production value of the Shanghai equipment industry in 2010 will reach 1,500 billion yuan, which is about 54% of total industrial production value in Shanghai. The key is to realize upgrade and breakthrough in power station and transmission equipment, rail traffic, micro electronic equipment, fine processing equipment, key exclusive equipment, energy source equipment, new environmental protection equipment, smart measurement and automatic control equipment etc. eight categories.