The Caohejing New Technology Development Zone was one of the first state-level economic and technology development zones and new technology development zones, approved by the State Council, to attract overseas capital and introduce advanced technology, and to develop new technology. The development zone locates in the southwest of Shanghai, with 6 square km planned area.

　　Excellent location, humanity and investment environment promote the Hi-Tech industrial projects to gather together continuously and form Hi-Tech industry group and an industrial chain with certain scale, where micro-electronics, optoelectronics, computer & software, neo-materials are four chief industries, including air & space aviation and biomedicine etc. An industrial chain has been formed to some degree. Meanwhile, the industrial gathering effect of the development zone begins to extend to zone function development to gradually constitute four functional centers, such as R&D center, technology innovation center, network center and financial data center. Now, the Caohejing development zone has gathered near 1000 local and foreign hi-tech companies, among which more than 400 businesses are foreign invested. Over 30 of the top 500 trans-national companies have established more than 40 hi-tech businesses here. There are 190 hi-tech enterprises have bee approbated by the Shanghai Government, which account for 16% of the total number of hi-tech companies enterprises in Shanghai.

　　The zone dedicates to building three topic parks: a dual excellence park both in quality and environment, a digital park and an international park, to effectively improve investment environment of the zone and to build a more superior development space for hi-tech industry and to promote vigorous development of foreign investment. The principal is R&D or R&D integration enterprises and some trade companies as well as intermediate service agencies in the fields of computer, microelectronics, optoelectronics, neomaterial and biomedicine etc.

　　In order to further explore the development space, the Caohejing New Technology Development Zone is preparing to build the Pujiang Hi-Tech Park with area of 10.7 km2, which real construction stage has begun now. In March 2003, the State Council agreed the approval of the General Customs Administration to add the Caohejing Export Processing Zone in the Pujiang Hi-Tech Park, with 3 km2 planned area, and in the first phase about 0.9 km2 will be developed, which has passed examination of related ministries and commissions of the General Customs Administration.