SHANGHAI authorities are facing a problem of overlapping functions which have emerged between the city's Jinqiao Export Processing Zone and its Zhangjiang Hi-tech Park.
Authorities acknowledged the overlap, which occurred despite their attempts to avoid any conflict of interest among Pudong's four development zones.
Pudong authorities have said the overlap was inevitable and the only way to tackle the situation was through 'internal co-ordination'.
The 19 square kilometre Jinqiao Export Processing Zone was set up primarily to serve as an export processing district, and the 17 sq km Zhangjiang Hi-tech Park aims to attract high-technology industries.
Shanghai Pudong New Area administrative committee comprehensive bureau chief Si Weiming said: 'From a functional point of view, all industries want to go hi-tech.
'But from an industrial point of view, there is definitely overlapping.
'We can only use internal co-ordination to sort out things - such as when approving projects for the two zones.' He said food processing and chemical industries could be located in Zhangjiang, which the plan intended for development into a 'pharmaceutical valley'.
Jinqiao could continue to develop as a zone for computer industries, and concentrate on developing the modern communication industries.
He said almost all industries in Shanghai were going hi-tech this decade.
It was natural that investors were more attracted to Jinqiao, which had better infrastructure and support facilities, and this was reflected in the fact the zone had total assets worth five billion yuan (about HK$4.65 billion). He said Jinqiao's progress was inevitable and it would hinder Zhangjiang's development.
Mr Si said preferential policies for industries that were desirable for Zhangjiang's development, would be arranged.
Prices for land leases would be made negotiable.
The companies charged with development of the two zones have expressed confidence in their individual development.
Shanghai Jinqiao Export Processing Zone Development vice-general manager, Zhang Ji said that although there was no conflict between the zones, the Shanghai government was considering converting the Jinqiao zone to a high-tech park mainly for computers. 'Jinqiao and Zhangjiang are brothers. But because of market development, there is competition,' Mr Zhang said.
'We are better due to the more conducive investment environment and better infrastructure facilities.' Shanghai Zhangjiang Hi-tech Park vice-president Liu Zhengyi said the park was slowly developing projects and would become more active in attracting investors.
'Before we were passive,' Ms Liu said. 'This year, we will adopt new strategies, and new concepts will be introduced. They will start in June.' All eyes have been on Pudong area since the central government announced plans to transform the 522 sq km area into a new metropolis by sub-dividing it into four zones.
With Jinqiao and Zhangjiang, the other Pudong zones are Lujiazui Finance Trade Zone and the new Waigaoqiao Free Trade Zone.