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SANGHAI, CHINA

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Sanghai is the largest city in China in terms of population and one of the largest urban areas in the world, with over 20 million people in its extended metropolitan area. Located on China's central eastern coast at the mouth of the Yangtze River, the city is administered as a municipality with province-level status.

Originally a fishing and textiles town, Shanghai grew to importance in the 19th century due to its favorable port location and as one of the cities opened to foreign trade by the 1842 Treaty of Nanking. The city flourished as a center of commerce between east and west, and became a multinational hub of finance and business by the 1930s. However, Shanghai's prosperity ground to a sharp halt after the 1949 Communist takeover and the subsequent cessation of foreign investment. After being allowed economic reforms in 1990, Shanghai is booming once more with intense development and financing, and in 2005 became the world's largest port.

The city is an emerging tourist destination renowned for its historical landmarks such as the Bund and Xintiandi, its modern and ever-expanding Pudong skyline including the Oriental Pearl Tower, and its new reputation as a cosmopolitan center of culture and design. Today, Shanghai is recognized as China's most important centre of commerce and finance, and is widely regarded as a future global city and as the showpiece of the world's fastest-growing economy.


Before the formation of Shanghai city, the area was part of Songjiang county , governed by Suzhou prefecture . From the time of the Song Dynasty (AD 960–1279), Shanghai gradually became a busy seaport. A city wall was built in AD 1553, which is generally accepted as the start of the city of Shanghai. During the Qianlong era of the Qing Dynasty, Shanghai became an important regional port for the Yangtze and Huangpu rivers. It also became a major seaport for the nearby Jiangsu and Zhejiang provinces, although overseas commerce was still forbidden at that time. A historically important area of this era is Wujiaochang ) , the foundation of the city center. Around the end of the Qianlong era, Shiliupu became the largest port in East Asia.

The importance of Shanghai grew radically in the 19th century, as the city's strategic position at the mouth of the Yangtze River made it an ideal location for trade with the West. During the First Opium War in the early 19th century, British forces temporarily held Shanghai. The war ended with the 1842 Treaty of Nanjing, which saw the treaty ports, Shanghai included, opened for international trade. The Treaty of the Bogue signed in 1843, and the Sino-American Treaty of Wangsia signed in 1844 together saw foreign nations achieve extraterritoriality on Chinese soil, the start of the foreign concessions.

1854 saw the first meeting of the Shanghai Municipal Council, created in order to manage the foreign settlements. In 1863, the British settlement, located to the south of Suzhou creek (Huangpu district), and the American settlement, to the north of Suzhou creek (Hankou district), joined in order to form the International Settlement. The French opted out of the Shanghai Municipal Council, and maintained its own French Concession, located to the south of the International Settlement. Citizens of many countries and all continents came to Shanghai to live and work during the ensuing decades; those who stayed for long periods — some for generations — called themselves "Shanghighlanders". In the 1920s and 1930s, almost 20,000 so-called White Russians and Russian Jews fled the newly-established Soviet Union and took up residence in Shanghai. These Shanghai Russians constituted the second-largest foreign community.

The Sino-Japanese War concluded with the Treaty of Shimonoseki, which saw Japan emerge as an additional foreign power in Shanghai. Japan built the first factories in Shanghai, which were soon copied by other foreign powers to effect the emergence of Shanghai industry. Shanghai was then the most important financial center in the Far East. Under the Republic of China, Shanghai was made a special city in 1927, and a municipality in May 1930.



The Imperial Japanese Navy Air Service bombed Shanghai on January 28, 1932, nominally in an effort to crush down Chinese student protests of the Manchurian Incident and the subsequent Japanese occupation of northeast China. The Chinese fought back in what was known as the January 28 Incident. The two sides fought to a standstill and a ceasefire was brokered in May. The Battle of Shanghai in 1937 resulted in the occupation of the Chinese administered parts of Shanghai outside of the International Settlement and the French Concession. The International Settlement was occupied by the Japanese on 8 December 1941 and remained occupied until Japan's surrender in 1945. According to historian Zhiliang Su, at least 149 "comfort houses" for sexual slaves were established in Shanghai during the occupation.

On May 27, 1949, the Communist Party of China controlled the People's Liberation Army and took control of Shanghai, which was one of the only three former Republic of China (ROC) municipalities not merged into neighbouring provinces over the next decade (the others being Beijing and Tianjin). Shanghai underwent a series of changes in the boundaries of its subdivisions, especially in the next decade. After 1949, most foreign firms moved their offices from Shanghai to Hong Kong, as part of an exodus of foreign investment due to the Communist victory.

During the 1950s and 1960s, Shanghai became an industrial center and center for revolutionary leftism. Yet, even during the most tumultuous times of the Cultural Revolution, Shanghai was able to maintain high economic productivity and relative social stability. In most of the history of the People's Republic of China (PRC), Shanghai has been the largest contributor of tax revenue to the central government compared with other Chinese provinces and municipalities. This came at the cost of severely crippling Shanghai's infrastructure and capital development. Its importance to China's fiscal well-being also denied it economic liberalizations that were started in the far southern provinces such as Guangdong during the mid-1980s. At that time, Guangdong province paid nearly no taxes to the central government, and thus was perceived as fiscally expendable for experimental economic reforms. Shanghai was finally permitted to initiate economic reforms in 1991, starting the huge development still seen today and the birth of Lujiazui and Pudong.


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July 2006
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