The Chinese economic hub of Shanghai began construction of the New York University Shanghai (NYU Shanghai) on Monday, the first university jointly operated by China and the United States.

NYU Shanghai is an independent entity authorized to grant degrees. New York University and the Shanghai-based East China Normal University (ECNU) will operate the institution.

The two universities will strive to develop the joint venture into one of the world's finest comprehensive universities, said NYU President John Sexton during an interview before he attended the ground-breaking ceremony Monday afternoon.

"In the era of globalization, we and our American partner hope to cultivate innovative international talents by providing opportunities to share global educational resources and experience different cultures," said Yu Lizhong, president of the ECNU.

The campus, located in the Lujiazui financial and trade zone in Shanghai's Pudong New Area, is expected to greet the first group of undergraduates, most of whom are Chinese, in 2013, Yu said.

Sexton estimated that the university would accommodate about 3,000 Chinese and international students in the future, two thirds of whom would be undergraduates.

The syllabuses and curricula of NYU Shanghai would follow the examples of world-leading universities, and the new university would feature all-around education, English lectures and small classes that encourage open discussions, Yu said.

The faculty-student ratio in the university would be one to eight, twice the average in Chinese universities, Yu said, adding that all undergraduates would study the humanities, as well as social and natural sciences, before choosing a major.

He said the university would recruit faculty members from the world, including the NYU and ECNU.

Also, the assessment of student applications would be based on performances in both China's national college entrance examination and an NYU-style student screening process.

The establishment of NYU Shanghai is part of NYU's plan to build itself into a "global network university" as it has opened campuses in London and Abu Dhabi.

The undergraduates from NYU Shanghai would be allowed to transfer to London and Abu Dhabi campuses for up to three semesters, according to Sexton.

In 2006, NYU set up a Shanghai center on the campus of ECNU, which allowed students from both universities to attend classes provided by both sides, Yu said, adding that the program paved the way for further cooperation.

The Outline of China's National Plan for Medium and Long-term Education Reform and Development, which was issued last year, called for the internationalization of tertiary education.

In early March, Chinese Premier Wen Jiabao urged the establishment of world-class universities when he delivered the government work report to the National People's Congress, China's top legislature.

Educational experts hope that the introduction of foreign education resources can bring about the "catfish effect". As a result, competition can prompt domestic universities, which have been criticized for bureaucracy and academic plagiarism, to carry out reforms.

Xiong Bingqi, deputy director of the 21th Century Education Research Institute, said that if Sino-foreign universities were given autonomy of providing excellent education and attractive scholarships, they would drive the reform and development of Chinese universities.

The first Sino-foreign university with approval from the Ministry of Education was the University of Nottingham Ningbo, China. It was co-established by the U.K.-based University of Nottingham and Zhejiang Wanli Education Group-University.