Self-inflicted wounds

An interesting piece this week on the AsiaPundit blog about how China is hurting itself with Internet censorship. This points to the direct business issues involved rather than the somewhat less tangible - although no less important - civil liberties issued tied up with censorship. If you can't get the information you need to do business, you will not become a major business centre, particularly for the high value-added financial services and related activities to which so many cities aspire these days.

In that context, I would question the Myrick, the blogger's claim that he lives in China's "international financial capital". Shanghai can continue to build airports, roads, World Expos, tall, shiny buildings and trendy restaurants as though there were no tomorrow but that alone won't make it the financial capital of Asia. For the foreseeable, as Myrick points out, that role is securely bedded in Hong Kong. Shanghai will continue its evolution as the main centre for domestic China business. Competing with one hand firmly tied behind its back, it may reach, though, a development ceiling in the fairly near future.