ably located and this has made it to serve as China’s largest trading ports and gateways from the mid-19th century after the aftermath of the Opium war. The city occupies an area of 6,340 km². The development of Shanghai comes from its several economic bases. It has made a rapid and sustained economic growth and development since the late 1970s when China began its economic reforms (Couling 2000).
Shanghai has changed demographically with the population rising from fourteen million three hundred and fifty thousand people in the year 2000 according to United Nations statistical data but currently is has a population of over twenty three million as of 2010. The Gross Domestic Product of Shanghai during 1978-2000, attained was 6.5 times an increase and reached 48.749 U.S. dollars accompanied by a yearly growth rate of 9.5%. The city has shifted from an industrial and commercial city into a national economic center. The proportion in Shanghai’s G.D.P has been raised because of the rapid and faster development in various infrastructural sectors such as transport, insurance, real estate, banking, and trade. This has been facilitated by the rapid development of finance, insurance, trade, transportation, communications, and other types of the tertiary industries from 30 percent to 50 percent within a span of 10 years (Sheng 2002).
Shanghai and Macau are related commercially in various infrastructural facilities. The common factor that keeps the relationship is the relatively cheap air transport. This facilitates quick business between the locals of the two cities. With increased business there is increase in the Gross Domestic Product of the two economies ( Peter 2002).
Shanghai – Taiwan relationship was meant to deepen market-oriented reforms and boosting economic vitality and coexistence between the two cities. Taiwan and Shanghai have proposals, which cover cross-Strait cooperation in technology, finance, agriculture, education, tourism, as well as insurance.