Liang Hongfu

Shanghai needs to take bold action to lead delta

By Liang Hongfu (China Daily)
Updated: 2005-11-29 06:42

Shanghai is a poor choice as the commercial centre for the prosperous and fast growing Yangtze River Delta region. To maintain its lead position, owed largely to historical events and, in more recent years, to central government policies, Shanghai will need to re-invent itself with daring thoughts and bold action.

When China began to pursue economic reform and an opening-up policy in the late 1970s, Hong Kong had already built infrastructure that was light years ahead of anything that could be found in the Pearl River Delta region. The city was also a major source of capital that has largely bankrolled the rapid industrialization of Shenzhen and the many neighbouring counties and townships.

What is more, Hong Kong's well-developed financial sector is fully plugged in to the global marketplace, and its common-law-based legal system is in sync with the widely accepted rules of international commerce and investment.

In comparison, Shanghai never enjoyed as huge a head-start as the other cities in the Yangtze River Delta region.

Unlike Hong Kong, Shanghai is not endowed with a natural deep water port. The one it is building on an island is not expected to be fully operational until 2010. Meanwhile, the region is well served by the deep-water port in Ningbo, a thriving commercial city across the river from Shanghai.

Not too far away, Hangzhou, adorned by the fabled West Lake, is fast becoming a business centre servicing the highly industrialized areas in the neighbourhood, and Suzhou, a scenic city with two well-developed science parks, is already the most vibrant base of China's electronics industry.

Since Shanghai and other cities in the region began to develop at more or less the same time, the overlapping of projects undertaken by them is unavoidable. Such inter-city competition can be very wasteful of public resources.

The strength of Shanghai lies more in its people than its location or facilities. Because of their earlier exposure to Western culture, Shanghai people are known to be more willing to accept and try new things than the people in other parts of the mainland. In business, Shanghai people are seen to be entrepreneurial in the sense that they are more creative and less afraid to take risks.

Although Shanghai has an expanding pool of talent coming out of its many excellent universities, the city may want to consider incentives to attract professionals and managers to come to work and stay.

In fact, the fight for talent has been raging for some years among the world's leading service and financial centres.

Both Hong Kong and Singapore have rolled out the red carpet to welcome talent from around the world, including the Chinese mainland.

Developed countries offering excellent research facilities, a high quality of life, good pay and bright prospects in business as well as academia, are the magnet to many of the best and brightest scientists and professionals from around the world.

Shanghai has the potential of establishing its pocket of excellence. It is host to some of the best universities and technical institutes in the nation. The quality of life in Shanghai is far from world-class. But it has its own charm and some of the world's most scenic spots are only a few hours drive away from the city on what is considered one of the mainland's best-designed highway network.

Most important, perhaps, is that Shanghai's go-go economy offers plenty of opportunities to entrepreneurs with guts and imagination.

Take a stroll along any commercial street in the city and you will be impressed by the many shops and eateries that are a testament to Shanghai people's creativity.

Allow this creative force to flourish, and the vast pool of talented people, including corporate chieftains, shop owners, professionals and managers, will shape a bright future for Shanghai.

Email: jamesleung@chinadaily.com.cn

(China Daily 11/29/2005 page4)