THE name "Shanghai" has frequented the nation's media again this year as the city continues its active role in China's economy.

But this year looked a little different to previous years of rapid growth.

Toward the end of September, a Forbes report ranked Shanghai fourth among commercial cities on the Chinese mainland when judged in terms of business environments, following Hangzhou and Ningbo in neighbouring Zhejiang Province and Dalian in northeastern Liaoning Province.

Despite doubt over the list's validity, due to its focus mainly on private enterprises, the Forbes report has shed light on Shanghai's high GDP growth figures and highlighted a number of challenges the city cannot afford to ignore in its rush to develop.

Increasing traffic congestion has been among the city's priorities in 2004. Apart from new metro lines under construction, other plans to lessen pressure on roads have been discussed and endorsed, including setting up more one-way streets and stopping a number of roadside construction sites.

The sky-rocketing price of real estate is another concern for government, businesses and the general public. While experts like Andy Xie from Morgan Stanley have warned that the bubble may soon burst in the Shanghai real estate market, Shanghai municipal government has been assuring the public that an overwhelming proportion of houses are bought for owners' use rather than speculation and that the prospect for 2005 is rosy.

After last summer's power shortages, the approach of Shanghai's chilly and damp winter has already triggered worry about a similar scenario. It is estimated that the city may face a lack of more than 1 million kilowatts of electricity in peak periods this season.

The growing cost of doing business could drain some foreign investment away from Shanghai, a fear that will keep city officials busy in the new year trying to rein in the scorching real estate market, reduce traffic jams and, in what has almost become the city's mantra, "optimize the structure of the city's economy."

But nothing deterred Shanghai from building an economy and a society of sustainable development and openness in 2004.

Nationwide macro-control efforts have intensified Shanghai's commitment to pursuing not only high economic growth, but also a sound and healthy economy.

On August 23, 2004, when Executive Vice-President of Siemens Ltd, China Peter A Borger handed in his application for a permanent resident card, he made a mark on Shanghai's opening-up process by becoming the first foreigner to ask for a Chinese green card.

A municipal regulation that took effect in May requires the government to make public its documents, with limited exceptions, in conformity with the World Trade Organization's requirement for transparency.

The roar of Formula One cars in September and the hilarity displayed during the ensuing Shanghai match between the Houston Rocket and the Sacramento Kings added to Shanghai's popularity with world top-class sports and entertainment agencies. As the calendar runs out, the French impressionist works from Musee d'Orsay and "The Phantom of the Opera" vie to make a perfect ending for 2004.

The Bund is becoming increasingly trendy this year with renovations completed in a number of buildings, including Three on the Bund and Bund 18. The preservation of these buildings has attracted particular attention, since the charm of the Bund lies in its historical heritage and beautiful architecture.

In the summer of 2004, a 21-year-old Shanghai man, Liu Xiang, impressed the world with his confidence and bright smiles after equaling the world record to win the first men's 110-metre hurdles Olympic gold medal for China.

In a way, what Liu has demonstrated symbolizes the spirit of his home city: vitality, confidence, courage to face difficulties and yearning for progress. With that, Shanghai has wowed the world again in 2004.

May these characteristics keep Shanghai moving forward in 2005.