Competition between Hong Kong and major Chinese cities would benefit their economies and the economy of China as a whole, Chief Executive-designate Tung Chee-hwa said in Shanghai. Speaking at a Trade Development Council business seminar, Mr Tung said there was both co-operation and competition between Hong Kong, Beijing, Shanghai and Guangzhou. 'However, I believe there would be more co-operation than competition. 'The competition would be mutually conducive to our economic development and there is no such problem as which city should be replaced by others,' he said. Mr Tung has met Shanghai party secretary Huang Ju and deputy mayor Chen Liangyu . It is the first time he has been to Shanghai, his birthplace, since he was selected Chief Executive-designate. But he had no time to visit his childhood home. Mr Tung cited the performance of Shanghai Industrial Holdings shares since it was listed in Hong Kong as evidence Hong Kong could benefit from the economic development of the mainland city. However, he mistakenly called it an H share instead of a red chip. Hong Kong will be allowed to distance itself from any trade war between China and the United States, according to assurances by Minister of External Trade Wu Yi .
