Hong Kong's bid to keep pace with China's breakneck economic growth by strengthening its own status as a global financial center could face stiff opposition from mainland cities, analysts warn.
The southern Chinese territory's government last week unveiled a series of economic proposals designed to fit in with China's recent 11th five-year development plan, which many felt ominously omitted any mention of Hong Kong.
A key plank of the proposals was to strengthen the former British colony's powerful financial services sector, which for decades has provided a gateway to financing deals between China and the rest of the world.
However, analysts said the proposals could conflict with the plans of other major Chinese cities such as Guangzhou, Shenzhen and Shanghai, which also want a share of the booming Chinese economy.
"We are worried that we are being gradually marginalized. The slow decline is very real," said Joseph Cheng (鄭宇碩), political science professor at the City University of Hong Kong.
"With more mainland cities opening up, we have to make sure that we continue to improve ourselves and fight off competition in order to survive," he said.
Since China's accession to the WTO in 2001, there has been a huge increase in direct foreign investment into the country, boosting major cities across the nation.
Economic ties between Hong Kong and China have also grown closer, with authorities in Beijing expanding a free trade pact with the territory and allowing millions of mainland tourists to visit the city.
But Hong Kong faces increasing challenges, particularly in the logistics industry, from the nearby Pearl River Delta, which has established itself as a booming manufacturing center because of its lower handling costs.
At the unveiling of Hong Kong's plan last week, high-level government officials and business tycoons urged Beijing to make the city "China's international financial center of global importance."
After months of intense preparation, Hong Kong rolled out strategic measures containing more than 200 action points to integrate with China's 11th five-year plan, which focuses on economic development from last year to 2010.
Hong Kong urged Beijing to relax rules limiting the ability of Chinese firms to launch initial public offerings (IPOs) here, to break down financial barriers between the neighbors and to use the southern boomtown as a testing ground for yuan trading.
Only a few days earlier, China approved a law allowing mainland lenders to sell yuan-denominated bonds in Hong Kong, seen as a key step towards making the Chinese currency fully convertible.
However, some analysts are sceptical about the viability of the measures.
They have been described by the local press as "fantasies," "unrealistic optimism," or even a "Santa Claus wish list."
The South China Morning Post said it believed many of the points would remain unfulfilled for a long time.
Local observers agreed.
"I think there are genuine attempts to seek concessions from China. There's no doubt about it. Hong Kong Chief Executive Donald Tsang (曾蔭權) wants to iron out concerns but you can't just present a wish list and hope it will be fulfilled," Cheng said. "We can't get all the support from Beijing. There are a lot of competitive requests out there going to the central government."
James Sung, a political scientist at City University, said he was concerned about the complexities of putting the proposals into practice.
"Most of the [measures] are not easy to implement. All these cross-border plans involve a lot of stakeholders -- Beijing, provinces and cities. It's very complicated," he said. "It's not easy to make them all think they will all benefit from them. There are a lot of competitors out there."
Peter Cheung (張贊賢), political professor at Hong Kong University, said it was unlikely Beijing would easily make concessions, but he believed the government was heading in the right direction.
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