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Thread: Document: Shanghai-YangZi River Delta vs. HongKong-Pearl River Delta

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[quote=MARRIE,364928]For many multinational companies, Shanghai has and will continue to become their focal point for mainland China business.  Indeed, Shanghai is well positioned and equipped to fulfill this function as a location for national headquarters, especially to those large manufacturing MNCs.  Hong Kong, however, with its much more international outlook, will continue to be the preferred location for regional headquarters with wider responsibilities and activities including finance and logistics.

What about Hong Kong and Shanghai role as Transportation and Logistic hub?  Both cities have placed a heavy emphasis on the investment in and development of container handling facilities to serve their respective cargo catchment areas.  Indeed, Hong Kong and Shanghai does not compete with each other in this sector.  In terms of competition, Hong Kong's main rivals are those container terminals in neighboring Guangdong province across the border while Shanghai competes with its own regional rivals such as Ningbo.

The area of air cargo is also similar in nature to that of containerized transportation.  The air cargo terminals of the two cities again serve different catchment areas.  Shanghai is the hub for eastern China while Hong Kong dominates the south.  Interestingly, the two hubs face very different challenges in maintaining and expanding their respective leading positions in their markets.  While Shanghai is trying to expand its international coverage in order to provide a more comprehensive air cargo network, Hong Kong is trying to expand its coverage within Mainland China so as to complete its already establish international network.

Hong Kong has a large, strong and experienced pool of entrepreneurs and management professionals who are internationally sophisticated in their outlook with good access to other international markets and information.  Shanghai on the other hand, has a strong pool of technically trained engineers together with a well-educated, skilled and hungry workforce.  Whilst Shanghai has made great efforts to further its international network and information reach, it remains far behind Hong Kong in this respect.  Its advantage is however, that it does posses an excellent technical workforce and a cluster of academic institutions that provide a better base for research and development activities.  
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