While pursuing its goal, Shanghai will rival Hong Kong—already a mature international financial and shipping hub. Shanghai and Hong Kong target different groups of customers, and they are at different levels in terms of financial sophistication and shipping scale, NDRC Vice Minister Liu Tienan said.

Hong Kong's status as an international financial and shipping center would not be replaced in the short term, and Shanghai could learn from its example for quite a long time, said Tu Guangshao, another Shanghai vice mayor.

"The best ending would be for both Hong Kong and Shanghai to develop based on reciprocal benefits," he said.

Liu Shijin also pointed out that Shanghai has to determine what the relationship between its advanced manufacturing sector and modern service sector will be. It already has developed secondary and tertiary industries, but has not yet decided which one will be its dominant industry, Liu said. While the pursuit of the "two centers" will definitely offer a boost to the service industry, the government proposal also emphasizes the importance of making full use of its advantages in manufacturing to support the service sector, which poses great challenges for Shanghai.

Although the city has led China's economic growth in the past three decades, its economic growth slowed down last year and was much lower than the country's overall average growth rate. Nevertheless, Shanghai would seize important opportunities for economic revival by pursuing its "two centers" goal for greater and longer-term focused achievements, Liu said.

Measures to Make Shanghai an International Financial Center

—Develop a multifunctional and multilayer financial market in Shanghai with the introduction of more financial products, instruments, derivatives and futures;

—Gradually increase the volume of yuan-denominated bond issues by international development agencies; steadily work to allow foreign companies to issue yuan-denominated bonds in Shanghai; and permit some foreign firms to be listed on the Shanghai Stock Exchange at an appropriate time;

—Encourage development in some sectors, including finance software research and development, financial information, accounting and auditing, investment consulting and financial legal services to improve services for financial institutions.

Measures to Make Shanghai an International Shipping Hub

—Continue to improve the infrastructure at the Shanghai port whileBintegrating neighboring resources in the Yangtze River Delta;

—Promote shipping services by lowering transfer costs for containers from around the world while striving to enhance the competitiveness of domestic shipping firms;

—Extend the deadline of tax shelters for domestic ships under flags of convenience from June 30, 2009, to June 30, 2011, and possibly initiate tax rebates for ports of departure;

—Allow major domestic shipping companies to set up financial leasing firms and actively and steadily encourage such firms to trade and issue bonds on the Shanghai-based interbank market;

—Allow international cruise operators to register and establish agencies in Shanghai to operate approved international cruise lines.

(Source: State Council's Proposals for Promoting Modern Services and Advanced Manufacturing Industries and Building International Financial  and Shipping Centers in Shanghai)