Fierce competition has broken out between Beijing, Shenzhen and the Pudong district of Shanghai to operate the mainland's first hi-tech export processing zone.
At the same time, the Communist Party leadership has mapped out plans to move relatively low-tech industries in the coastal open cities and economic zones to heartland provinces.
A planning source said in Beijing yesterday the leaders of the three cities had lobbied top cadres, including President Jiang Zemin and Premier Zhu Rongji, for funds to start the hi-tech export zone, which will enjoy special policies including low taxes.
Leaders, including Mr Zhu, have ruled that to avoid duplication, only one such zone will be allowed in the foreseeable future.
The source said Shenzhen pulled off a coup last month when it got Mr Zhu's permission to host a national hi-tech fair every year.
The city boasts the highest level of 'hi-tech content' in its industrial products.
However, Guangdong economists pointed out that in terms of the concentration of hi-tech personnel, Shenzhen lagged behind Shanghai and Beijing.