New Reply

Post a Reply

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

Title: (100 characters at most)

Content: ( 3,000 characters at most, please )

You can add emoticons below to your post by clicking them.

[quote=MARRIE,364931]The development of the Yangtze River Delta began in 1984 when the cities of Shanghai, Ningbo and Wenzhou were declared open to foreign investment.  In 1990, the Chinese government further declared Pudong New Zone and several more cities in the Yangtze River valley open to overseas trade and investment.  Today, with an area consisting of some 15 cities in Shanghai proper, Zhejiang and Jiangsu Provinces, the Yangtze River Delta accounts for 19% of the Mainland’s GDP and approximately 10% of her population.  The Delta has established itself as a credible manufacturing base and also as a potential consumer market.  While Pearl River Delta and Fujian province has traditionally been the target of Taiwanese investment, Yangtze River Delta is becoming an  increasingly popular investment destination for the industrial migration from Taiwan into China.  It has overtaken Fujian Province in attracting such cross strait investment.  By 2000, Shanghai and the two provinces together accounted for close to 30% of the nation’s FDI.

COMPETITION BETWEEN THE DELTAS: A HEALTHY PHENOMENON
Indeed, unlike the metropolis of Hong Kong and Shanghai, the two deltas do compete with each other.  With China’s emergence as both a leading manufacturing power and a substantial consumer nation in its own right, foreign and domestic investors will continue to increase and enlarge their investments in China.  With improving infrastructure and maturing urban economies all around Mainland China, especially in the coastal provinces, the competition for foreign and local fixed asset investment has become more intense.  In a world where investment is liquid and efficient, the ability to attract fixed asset investment is not only critical to the continued success of the respective delta.  From the point of view of each respective delta, every new dollar invested in one delta implies the loss of one potential dollar invested in the other.

Indeed, this competition will continue and become increasingly focused and fierce.  Such competition, however is not necessarily bad for the Pearl River and Yangtze River Deltas.  Competition, with which we are so familiar in Hong Kong, is the key to higher product quality and increased production and cost efficiency.  Lack of competition leads only to complacency and in turn, higher costs and lower efficiency.  At the end of the day, competition forces us to produce a better product at a more competitive price.  
[/quote]

characters left

Name:

Get a new code