Economic Center of China

With the rapid development of China, China becomes an economic and global country now. More and more China’s cities trade with the businessmen in the world, two major economic centers – Hong Kong and Shanghai – has became the world’s necessary economic hubs.

The advantage in geography makes Hong Kong prosperous in international trade. The economy, governed under positive non-interventionism, is highly dependent on international trade and finance and in 2009 the real economic growth fell by 2.8% as a result of the global financial turmoil. Despite the downturn, Hong Kong’s economic strengths, including a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves, rigorous anti-corruption measures and close ties with the mainland China, enable it to quickly respond to changing circumstances.

The Hong Kong Stock Exchange is the 6th largest in the world, with a market capitalisation of about US$2.97 trillion. In 2006, the value of initial public offerings conducted in Hong Kong was second highest in the world after London. In 2009, Hong Kong raised 22 percent of worldwide initial public offering (IPO) capital, becoming the largest centre of IPOs in the world. The rival stock exchange of the future is expected to be the Shanghai Stock Exchange. As of 2006, Hong Kong Exchanges and Clearing (HKEX) has an average daily turnover of 33.4 billion dollars, which is 12 times that of Shanghai.

Shanghai is the biggest port in China and it is a center of technique, trade, finance, information and culture. And also it is one of the biggest cities in the world and a famous international port. The Bund has evolved into a center for international finance and trade.

Shanghai is increasingly a critical center of communication with the western world, examples include the opening of the Pac-Med Medical Exchange in June of 2004. Pac-Med is a clearinghouse of medical data and a link between the Chinese and westernized medical infrastructures. In medicine and other humanitarian fields, China is actively seeking input of first world nations to improve statistical living conditions and trade status. Arguments for and against modern Chinese leadership question the genuine influence the influx of western culture and medicine will have on the internal Chinese populus outside the densely populated, oft visited financial and cultural urban centers. The Pudong district of Shanghai contains purposefully westernized streets (European/American ‘feeling’ districts) in close proximity to major international trade and hospitality zones. Western visitors to Shanghai are greeted with free public parks, manicured to startling perfection in distinct contrast to the massive industrial installations which reveal China’s emerging environmental concerns. For a densely populated urban center and international point of trade, Shanghai is generally noticeably free of crime against its visitors; Shanghai’s international diversity is perhaps the world’s foremost window into the rich, historic and complex society of today’s China.