The financial and commercial hub of mainland China is pinning its economic hopes on emerging industries such as autonomous driving and solid-state electric vehicle (EV) batteries to sustain growth following a robust start to 2026.

Shanghai Mayor Gong Zheng said the city remained confident about achieving a 5 per cent economic expansion this year, buoyed by a strategy to attract foreign businesses and bolster local tech innovations.

“We will double efforts to enlarge investment in key projects, taking advantage of their role in driving technological innovations,” Gong said at a press conference on Monday. “We aim to eventually revitalise industries, improve efficiency in urban renewal and enhance people’s living standards.”

The mayor’s upbeat sentiment came even with the US-Israel war on Iran clouding the global economic outlook while exposing China’s industrial hubs to energy-supply risks and inflationary pressure.

Shanghai – home to SAIC Motor, which is one of the mainland’s largest state-owned carmakers, and to Tesla’s wholly owned Gigafactory – has been aggressively driving the development of self-driving technology over the past two years.

In July, Nasdaq-listed Pony AI received a permit to operate commercial robotaxis in Shanghai’s Pudong New Area, allowing the Chinese self-driving technology firm to charge fares. And in February, Pony AI announced mass production of a robotaxi co-developed with Japanese carmaker Toyota.

Pony AI initially operated its fleet in Shanghai’s Jinqiao and Huamu areas, covering a combined area of 40 sq km (15.4 square miles), on a trial basis. The testing zone would be gradually expanded to other parts of Pudong, China’s 1,400 sq km (540-square-mile) pioneer zone, to showcase progress in building a modern socialist system, according to a statement by Pony.