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During the Qing Dynasty, Shanghai became one of the most important sea ports in the Yangtze Delta region as a result of two important central government policy changes: First, Emperor Kangxi QWGFDDDDDDDGSAHkmJui UIIn 1854, the Shanghai Municipal Council was created to manage the foreign settlements. In 1860?1862, during the Taiping Rebellion Shanghai was twice attacked by the rebel army. In 1863, the British settlement, located to the south of Suzhou creek (Huangpu district), and the American settlement, to the north of Suzhou creek (Hongkou 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, which still exists today as a popular attraction. 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 “Shanghailanders”. In the 1920s and 1930s, almost 20,000 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. By 1932, Shanghai had become the world’s fifth largest city and home to 70,000 foreigners. In the 1930s, some 30,000 Jewish refugees from Europe arrived in the city.
The Sino-Japanese War concluded with the Treaty of Shimonoseki, which elevated Japan to become another foreign power in Shanghai. Japan built the first factories in Shanghai, which were soon copied by other foreign powers. Shanghai was then the most important financial centre in the Far East. All this international activity gave Shanghai the nickname “the Great Athens of China”Under the Republic of China (1911?1949), Shanghai’s political status was finally raised to that of a municipality on 14 July 1927. Although the territory of the foreign concessions was excluded from their control, this new Chinese municipality still covered an area of 828.8 square kilometers, including the modern-day districts of Baoshan, Yangpu, Zhabei, Nanshi, and Pudong. Headed by a Chinese mayor and municipal council, the new city governments first task was to create a new city-centre in Jiangwan town of Yangpu district, outside the boundaries of the foreign concessions. This new city-centre was planned to include a public museum, library, sports stadium, and city hall.
On 28 January 1932, Japanese forces struck and the Chinese resisted, fighting to a standstill; 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, during which time war crimes were committed.
On 27 May 1949, the People’s Liberation Army took control of Shanghai, which was one of 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 centre and centre for radical leftism; the leftist Jiang Qing and her three cohorts, together the Gang of Four, were based in the city. 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), in order to funnel wealth to the rural areas, Shanghai has been a comparatively heavy contributor of tax revenue to the central government. This came at the cost of severely crippling Shanghai’s infrastructural and capital development. Its importance to the fiscal well-being of the central government also denied it economic liberalisations begun in 1978. Shanghai was finally permitted to initiate economic reforms in 1991, starting the massive development still seen today and the birth of Lujiazui in Pudong.

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