Thursday, March 4, 2010

Hong Kong’s Economy Surpassed by Shanghai

Shanghai’s economy exceeded the size of Hong Kong’s for the first time in at least three decades, reports S0phie Leung for Bloomberg.

Shanghai’s gross domestic product grew 8.2 percent to the equivalent of $218.3 billion in 2009 compared with a 2.7 percent contraction to $210.7 billion for Hong Kong, according to data compiled by Bloomberg.

Writes Leung:
The figures highlight 30 years of free-market policies that have spurred China to become the world’s third-largest economy and its No. 1 exporter. Shanghai’s rise may fan concern in Hong Kong that the mainland city will regain its position as China’s dominant financial center, after surpassing the former British colony as the nation’s biggest port and stock-market operator.

1 comment:

  1. Interesting article. I wonder if this wasn't part of China's strategy when it took control of Hong Kong from the British rather than allowing it to continue as an independent city-state. Essentially neutralizing a powerful competitor of Shanghai.

    Sort of like the US governments strategy with Toyota in its effort to protect Government Motors.

    No matter where they live, people really do have more in common than not. No one can resist clubbing their neighbor to gain an economic edge.