The Shanghai Free Trade Zone marks China's attempt to turn the eastern city into Asia's global business hub.(Carlos Barria/Reuter)
The launch of the Shanghai Free Trade Zone marks China's attempt to transform its largest city into Asia's top global business hub. Will it work?
China’s Commerce Minister, Gao Hucheng, presided over the launch of the much-hyped Shanghai Free-Trade Zone (FTZ). Beijing had approved the zone with the full backing of Premier Li Keqiang, there had been growing speculation in Hong Kong that the former British colony’s unique role as China’s offshore financial center was in jeopardy.
Now that the 11-square-mile FTZ—which includes the tariff-free areas of Yangshan Port, Waigaoqiao Bonded Zone and Pudong Airport—is open for business, there are more questions than answers. The two big questions are: Will the zone fulfill its potential as a testing ground for bold financial reforms for the rest of the country? And, will Shanghai ever be a global financial center on par with Hong Kong?
“I don't think there is any chance that Shanghai will become a global financial center by 2020, because the country's service sector will take far longer to develop than its manufacturing sector.”
However there are the potential risks of Hong Kong,
Many post 90s generated are spoiled by their parent, too much protection becomes loss of competitions.
Hong Kong has to take a political reform for changes or the City will die, in fact we are dying now!
The last Semiconductor manufacturing company NXP has finally moves into Hui Zhou leaving only one Semiconductor equipment company ASM in Hong Kong as the government has no vision to support the hi tech industry, opposite the way Korea, Singapore and Taiwan has been doing in the past 20 year.
We had J-pop, now K-Pop, never could hear any HK-pop!
Now Four Little Dragons has change into Four Little Dragons and One Caterpillar (Hong Kong!)
The renminbi and HK Exchange rate pull wider apart the gap between the dollar and RMB, 80% of food and major domestic utilities are imported from China, Hong Kong People is getting Poorer and poorer due to disgrace of buying power and inflation.
The confrontation between mainlander Chinese and Hon Konger is getting worse!
What Hong Kong people should do!? Nothing much to change the situation but going into state that the cases would changes their position.
Hong Kong people would one day work as a domestic helper in Shenzhen Rich Family home as they get paid in RMB.
China will import labour from Hong Kong especially middle management but remember that only those who spread good mandarin.
More Hong Kong student would rate Tsing Hwa and Beijing would be the first choice than University of Hong Kong.
More Hong Kong people would be called “Kong Tsan” (Hong Kong Pumpkins)
Rolex Advertisement in Shanghai 2005
Rolex will shift their focus from Hong Kong into China bigger city like Shanghai, GuangZhou, Beijing, Cheng Dou rather than Hong Kong.
Will Shanghai Replace Hong Kong to be a National Financial Centre by 2010, yet but almost! May be Shanghai could replace Hong Kong by 2025!
Sham Shui Po Kong Tsan