This weekend China’s free trade zone was launched. This zone is believed to be the next stage of China’s reforms. The zone allows tax breaks of imports and exports as well as banks for example may be given more freedom over interest rates. People believe that this is a start for the money to move more freely within the Chinese market.

The opening of this free trade zone in Shanghai however is not such good news for places like Hong Kong. Thought the years Hong Kong has been acting as the bridge between China and the world, however if this free trade zone in Shanghai were to become successful then Hong Kong would experience trouble. In that case curtain businesses such as the RMB trading business would have to relocate from Hong Kong to Shanghai. This could potentially lead to a downfall in Hong Kong’s economy.

Many other people however argue that Hong Kong’s clean government and English speaking stuff would be able to keep business within Hong Kong. This advantage as well as many others such as Hong Kong’s rule of law would be able to keep Hong Kong’s competitiveness even if Shanghai opens further.

Original article and video: http://www.bbc.co.uk/news/business-24326880