Shanghai to outshine Hong Kong?

Last Modified: 01 Jul 2007
By: Lindsey Hilsum

Hong Kong celebrates ten years after the handover, but could Shanghai rival it as the commercial gateway into China?

They've been parting for a month in Hong Kong - holding celebrations to mark Hong Kong's return to what the Chinese government calls 'the motherland'.

China's nominally Communist leaders are crowing that ten years on Hong Kong remains one of the most successful capitalist societies on earth. British citizens who considered leaving are glad they didn't.

"We were heartbroken at the thought of going and scared to death at the thought of staying, so we stayed." - Aileen Bridgewater, British resident

"We were heartbroken at the thought of going and scared to death at the thought of staying, so we stayed."
Aileen Bridgewater, British resident

The lifestyles unchanged - so much so, that newly wealthy mainland Chinese businessmen want to join in.

"We belong to the golf club. We got in very easily 26 years ago. Now it takes 20 years, because there is so much wealth in this part of the world now, I mean, mostly in South China." - Aileen Bridgewater, British resident

It was one of Tony Blair's first diplomatic assignments as Prime Minister - watching the Union flag being lowered over Britain's last major colony. Gordon Brown will find China even more assertive today.

China's new gateway?

The dire predictions have not come true - Hong Kong is still a thriving, prosperous financial centre. But it's no longer the gateway to China for foreign investors or anyone else - because you can come straight to Shanghai, Chinas dynamic commercial hub which in ten years has changed almost beyond recognition.

Hong Kong businesswomen Jean Chan started to invest in Shanghai just before handover.

"When I first came, there is no supermarket, no highway. Everything is a bit backward, you know, and we felt a bit uncomfortable. But gradually you know things improved, every day." - Jean Chan, Hong Kong Chamber of Commerce in China

She rents out luxury serviced apartments. Demand is rising, as multi-nationals like Unilever and Exxon Mobil open regional headquarters in Shanghai. A good sized flat would cost double in Hong Kong - wages are far cheaper here too.

"In the next ten years I think Shanghai will have more multi-national companies stationed in Shanghai. It will become really the very very centre of China." - Jean Chan

This year, for the first time, the Shanghai container port has handled greater volume than Hong Kong. Operating costs are cheaper, the factories are on the mainland and China is the world's largest potential market, so why ship via Hong Kong?

"It will become really the very very centre of China."
- Jean Chan, Hong Kong Chamber of Commerce in China

But one thing could never be seen in Shanghai: Falun Gong protestors in Hong Kong demonstrating against the Beijing government. Anyone who tried it on the mainland would be arrested.

The Chinese government is happy for mainland cities to look more like Hong Kong - but not to act more like it. Schoolchildren visit LegCo, the Hong Kong parliament, their guide, veteran democracy campaigner Emily Lau who says:

"What we want is democratic government, and that's what the Central Government has promised us, but they will not deliver"

Hong Kong has some autonomy and enjoys more freedom than the rest of China. Which is probably why people like Emily Lau are still banned from the mainland.

"They said the well water shouldn't mix with the river water. But what we want is democracy and human rights and rule of law in China."
- Emily Lau, Democracy Activist

"I think things are changing in China. But we don't have much means of influencing things there. And they won't let us anyway. They said the well water shouldn't mix with the river water. But what we want is democracy and human rights and rule of law in China." - Emily Lau, Democracy Activist

The annual dragon boat races - Hong Kong is still just ahead, but when the economy of the rest of China is fully open, Shanghai may overtake. Hong Kong influence and Hong Kong money are helping other mainland cities catch up.

The government in Beijing hopes that in another ten years time several Chinese cities will have the glitz and wealth of Hong Kong - but that none will demand its relative political freedom.