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

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[quote=MARRIE,364932]Furthermore, I do not think that such competition should be discouraged.  Such competition is in fact healthy.  On the macro level, it will raise the overall competitiveness of both deltas and, more importantly, of Mainland China as a whole as against other manufacturing areas around the world.  On the micro level, it will bring about a better and more cost efficient product for all end users.   The only caveat is of course to ensure healthy and constructive competition rather than destructive competition.  Destructive competition is typically price driven.  It ignores product quality, be it goods or services, and very often leads to declining standards.  Constructive competition on the other hand, raises the level of the product.  But it requires continued investment, initiative and a strong degree of customer/user focus.  I believe that the Pearl River and Yangtze River Deltas can utilize the inevitable competition and drive themselves further up the value chain.

FOR HONG KONG AND THE PEARL RIVER DELTA: HOW TO MAINTAIN THE EDGE
For those of us here in Southern China, we should be mindful of the challenge from Yangtze River Delta.  Much continues to be said about the competition between Hong Kong and the ports just across border.  I, for one, welcome such competition.  Hong Kong, afterall, is a free market economy.  Competition ultimately leads to increased efficiency.  I would very much discourage heavy-handed government intervention, or any other short-sighted measures in response to such competition.  The more interesting discussion to me, however, is on whether Hong Kong and other businesses in the Pearl River Delta can better integrate themselves to create a seamless logistic supply chain originating from the manufacturing facilities and ending on the shelves of the customer in the US, Europe or Asia.  Hong Kong is already a world class financial & trading hub.  Better integration with the Delta will complete the formation of a high quality, full service, and professional business center encompassing the entire area.  The Pearl River Delta will be that much more attractive to investors as a result and Hong Kong, Shenzhen and the Delta as a whole would gain from increased economic and investment activities.  
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