Shanghai Surprise

Traditionally HK only benefit as a trading and financial hub if China is unstable. During the 1940s - HK become the capital flight center for rich Chinese (oligarchs, land owners, triad leaders, war criminals, etc) to park their money when the country was in the midst of civil war and WW2. Up till today, the prominent families in HK hold a US, Canadian, British or Australian passports on top of the SAR citiizenships. They park their asset, children, etc in the West and can leave the country on a moment notice if China or HK is unstable. Just look at Richard Li's Canadian passport and his stashing his mistress and son in Canada. I don't the rich Hong Kongers will give up their foreign passport for a Chinese citizenship if push come to shove as they have no confident in the Chinese govt.

Let us be pragmatic. If there was no Toronto, where would there be a New York? Toronto and New York exist in the same continent, and the same globe. If China becomes a New York, how satisfied will the global village be? That depends on how China is perceived by the global community. I think, first the globe has to see advantages of China becoming a New York. If indigenous Chinese manufacturing firms are developed, then the firms have full control over their capital, and hence profits. Now, will the globe be happy with this, or will the globe impose punitive measures against the financial business, and manufacturing business of China? After all, foreign relations are not about only financial matters. There has to be a basic agreement, and goodwill. It is imperative, that there be a basic stability in Chinese society, in China. Then, this stability and tranquility will be seen externally too, in China's foreign relations.

You are too optimistic that Shanghai will becomea a global financial center in the near future. As you indicate in your article that Hong Kong has still the advantage of a fully convertible as well as rule of law.It is impossible that Shanghai will achieve the present condition of a legal framework as HOng KOng which is an essential factor as a competitive global financial cente
Unless China can successful transform into a mature society of democracy in the foreseeable future which is almost impossible judging from the corrent political situation as a totaritarian state with one party system. Chinese Communist Party still lacks confidence of her people which can be seen from recent measure to control information of internet. Therefore, I don't think that Shanghai can compete with Hong Kong as a global financial center in the foreseeable future.

sorry, Let me clarify.
"The HKSAR government is "NOT" maximizing the full potential of this place"

It should be a requirement that all NW journalists must first live and work in mainland China- for five years- before writing a single story. Again and again, this magazine makes grand pronouncements about the potential of China while "boots on the ground" read on in disbelief. China is a long, long way from being a global power or a financial power center. The rule of law does not exist, corruption is rife, the educational system is corrupt and promotes memorization above all else- critical thinking is not on the menu and will not be for a very long time. I would love to see a reality show where all NW China reporters are put through the following paces: (1) Take up residence in China (2) Take the required medical exam (+ Aids test) at a local hospital (required by law) (3) Ship your goods here + pay taxes on a 10-year-old TV (4) Find an apartment and negotiate with a local landlord + have it painted by a local contractor (5) Find a school for your kids (6) Find an office space and negotiate with a local landlord (7) Start a business (8) Hire staff (9) Fire staff (10) Hire more staff (11) Train the staff (12) Pay taxes (monthly) while your local friends never pay any (13) Find fresh air (14) Find grass you are allowed to sit or walk on (15) Get your wallet stolen and visit a local police station (16) Cross the street on a green pedestrian signal and take a taxi ride with an experienced driver (17) Be notified that since you moved to a new apartment (now crumbling even though it is only 5 years old) that you need to "report" to your local police station (18) Watch CNN black out (19) Watch your South China Morning Post get cut to pieces and wonder what happened to page 2 (20) Return to America and have the passport agent say, ???Welcome Home,???-- smile widely.

This is complete, ignorant nonsense and embarrassing too. Why did Hong Kong flourish? Well as racist and hateful as it is to say; the truth often is that these days. Hong Kong had the rule of law. Shanghai doesn't have that in any way shape or form. In Hong Kong one could always speak English. Does Shanghai have that? Ah, no. Not in any way. This is just more left wing , politically correct garbage. I've been to Hong Kong, obviously you couldn't pick it out on a map. Won't you guys do us all a favor and go bankrupt already.